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Had you put $1,000 in BTC four years ago and you’ll be sitting on over 20x profits from your investment and that’s huge ROI imo. Very few assets in this world are recording such a value appreciation, dollar-wise, and gold definitely doesn’t fall into this category.

It’s four years since BTC started its glorious journey over $1,000 and towards unlimited skies and it’s ridding the bull towards the moon once again. We don’t know how high will BTC peak in the 2020-2021 bull market, but we do know that Satoshi Nakamoto designed Bitcoin as a P2P payment currency, and its blockchain as a bank replacement financial institution, if you want to call it this way.

How much has changed in that regard in the last four years though? Not much I would say… Yes, the third bitcoin halving occurred in May this year and due to the block mining rewards being cut in half the price has been on the rise ever since. You still can’t buy much goods with it yet though.

Had you put $1,000 in BTC four years ago and you'll be sitting on a over 20x profits from your investment and that's huge ROI imo. Very few assets in this world are recording such a value appreciation, dollar wise, and gold definitely doesn't fall into this category.

At least not in my country and I’m quite sure there are very few businesses that accept Bitcoin payments at the moment, and truth be told who would pay at Starbucks with BTC… From what I remember there was a lot of hype around that news when Starbucks was talking of accepting BTC for coffee.

I wonder if the Lambos dealerships that were selling Aventadors for BTCs in 2017 are still in business with this currency of the future. Most of the use case BTC currently has is as a store of value, although that is also kind of speculative… Hence it is largely used by humans around the world to make more fiat money out of it, mostly by trading it, rather than actually using it for payments.

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Even in countries affected by hyperinflation, people who hold BTC to fight that inflation and corrupt governments are forced to actually convert crypto to cash and still use cash to pay for their goods. I’m doing the same thing with small portions of my crypto where I live. There’s no store around here that would allow ETH or BTC payments yet.

The future is definitely cashless, but it’s not like we’re gonna use Monero for that. No sir, governments don’t want privacy for their people’s finances and they’ve been fighting against it for years. Hence they’re working towards creating their own CBDCs that are supposed to compete against cryptocurrencies and the idea of a cryptocurrency as Satoshi Nakamoto envisioned it.

There are talks of a digital yuan, digital euro and so on, thus it’s clear that the economy is deemed for digitization, but why aren’t we using BTC after all. Well, the way I see it it’s three main reasons: corrupt governments, scalability issues and volatility.

At some point in the future, maybe BTC will become an alternative payment currency to whatever currencies will exist in the world, and that’s probably the reason why financial institutions are accumulating it at no matter the price. The dollar is already devaluating and that’s one reason also why BTC soars, and at some point 1 BTC might be valued at around $1 million.

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The question now is what purchasing power will that one million still have when BTC will be worth that much. I also tend to believe the narrative according to which price volatility will decrease over time, and once BTC soaks up trillions and trillions of wealth from all over the world there won’t be any incentive left to be trading it for cash/digital currencies.

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That’s when Bitcoin will probably finally become a P2P payment system, but I still think scalability might not be solved even then. Hence it might be used more as a store of value and as a mean to transfer value faster, probably cheaper and safer also, all over the world, but I still don’t see BTC in the hands of everyone buying goods with it. Like Satoshi designed it.

I’m wondering now, because I often don’t have the answers to most of the musings that cross my mind, how long will it take for BTC to get out of the speculative and volatile bubble and be able to act as Satoshi designed it to be, even if it is to be used solely for large chunks of wealth transfer. Trying to imagine the day large contracts like for example in the automotive industry would be settled in BTC rather than dollars.

Workforce, if there will be any left, will for sure be paid in some sort of a digital currency that’s not BTC, as gradually Bitcoin is passed from the hands of the people to the hands of the institutions. I guess though, we’re at least two halvings away from those times.

Source of images: unsplash and pixabay.
Source of original article: Publish0x
Credits: LeoFinance Beta

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The information expressed in this article is solely those of the author and do not necessarily reflect the vies of CryptoDeFinance.  Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment.
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Bruno Marques

Hi! I am the CEO/Founder of Crypto DeFinance, and I am an Enthusiast crypto investor. I started this project so we can provide you with carefully curated news. If you like us and our news, share the posts and comment. Your visit and interaction is very important to us.
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