Hackernoon logoNakamoto's idea Vs The Real World: How Bitcoin Is More Mainstream Than You Think by@tanveerzafar

Nakamoto's idea Vs The Real World: How Bitcoin Is More Mainstream Than You Think

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@tanveerzafarTanvir Zafar

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Millions of people still wonder. Can bitcoin and mainstream finance (fiat money) ever get along?

I will answer this question in many spheres but first I will start from a historical point of view.

Can bitcoin fit into mainstream finance:

Looking at the evidence, cryptocurrency is moving closer towards mainstream than ever before. Several high techs like Tesla et. al have started showing huge interest; investing huge amounts in bitcoin and other coins.

Historically, the government doesn't go along with anything that's beyond its control.

Without government and financial institutions, the world would have been in chaos. The government controls mainstream finance hence these questions can be placed as,

'Can government and bitcoin ever fit? The answer is a resounding NO. There is a reason for this blunt answer. Bitcoin can be adopted fully by the mainstream but I doubt if it will ever fit in. A lot will have to be changed for it to fit. By fitting in I mean if it can ever maintain its essence, independence, and Nakamoto's real idea.

Why the skepticism:

Since the beginning of time, the purpose of every government around the world has always been to lead, control, and manage the affairs of the people and money is always the greater part of this.

Bitcoin is way too decentralized. It is very unreachable and this makes it a problem for mainstream finance. A coin that controls itself, rules itself, and determines its own fate doesn't sit well with any government. In fact, for them, it's a risk from all angles because the government doesn't accept what it can't control.

Blockchain has been able to act as the incorruptible bank in bitcoin trading so everyone is starting to understand that money may not always need a bank.

The concept of bitcoin may look like it might fit mainstream finance for now but this is all because the buzz for bitcoin has become overwhelmingly too much hence they don't want to be seen as outdated and anti-people. The mainstream might look like it has adopted it but if any problem arises, it will capitalize on it and use it to downplay the concept of bitcoin.

Now and always, mainstream finance will always see blockchain as a threat rather than a component.

But this doesn't matter. The rivalry is what helps coins to develop and also ensures a better outcome for millions of users around the world.

Nakamoto's Idea Vs Real World:

Bitcoin is a worthy challenger. There is a reason for it being viewed as a rival.

Every currency that can stand the test of time must possess six qualities. These qualities are scarcity, divisibility, utility, transportability, durability, and counterfeit ability.

Currency has value because it can be used as a store and then can be used as a unit of exchange both locally and internationally.

The crypto bitcoin has value, it upholds very well when it comes to the 6 qualities of a currency.

The biggest issue is that its status as a unit of exchange is still contested because most businesses are yet to see it as a mode of payment.

The utility and transferability are still contested because cryptocurrency still has a lot to deal with when it comes to storage and exchange spaces.

If bitcoin keeps the pace, gains scale, ground, and captures 15% of the world's currency market, then things will change drastically.

The government uses the printing of money as a means to control scarcity. Bitcoin doesn't have such a scheme rather it has flexible issuances rate which changes over time.

All currencies or thing of value is backed with a physical thing like a physical commodity, gold, precious stones, and the value is driven by things like the scale of value and demand.

Bitcoin lacks such and the value of bitcoin is primarily driven by speculative interest. The bitcoin bubble happens as a result of price run-ups and media craze attention. If all mainstream adopts it, the media craze will drop and the price run-ups will be unlikely to happen but no one can tell.

The exchange spaces and storage of cryptocurrency have been plagued by hacks, thefts, and fraud. Although a lot is protecting the system, it may face bigger security issues.

Why the real world may pose the biggest challenge and how governments' influence will bite:

Based on the financial system, bitcoin and other digital currencies will be in stasis if the government keeps antagonizing them.

If it passes this risk of stasis. Another problem is the rivalry. Major institutions like Facebook, Amazon, Google, Apple, and all are rumored to be looking at publishing their currencies.

The bitcoin is good but so far it has as many flaws as the fiat currencies of today, if not more. Bitcoin is good but empires might strike back. States like China and Russia are already warming up to launch their coins and the State-backed coins will unarguably lead the charge because the constricts limiting the Bitcoins will be lifted by these states.

The future of fiat and crypto fitness lies in corporate and sovereign coins. Most likely, cohabitation will be likely uneasy and unpredictable.

The fear is that these coins that will be backed by States won't be like Bitcoin. Rather the will be like PayPal and WeChat pay. They may likely not have blockchains BUT the blockchains may be a placebo blockchain. These States will always like to be in control of the fate of the coin.

The scheme of money being universally people-powered will be destroyed by State innovated coins because the sole major purpose of bitcoin (decentralization) will be destroyed.

The new bitcoins will be out and great but will be wrapped in brands and layers of corporate brands, State flags, and brands from powerful firms.

The decentralization and bitcoin liberation may then rest in perfect peace because the blockchain system has been the wall blocking the government from controlling it.

Since the idea of State coins has seen the limelight, everything may burn out slowly as the government, I repeat, doesn't accept what it can't control.

Democratic governments like U.S, Canada, and others might give some leverage but Communist governments will never allow such big power to leave their hands.

Democratic norms and stand has been tested over the past few years. Very democratic governments are slowly turning into pseudo-democracy and this affects all aspects of life. Money most especially.

Bitcoin has had remarkable 11 years and has proven that certain aspects of life don't need interference. Such a notion is unbelievable to governments and methods must be used to keep it in line.

The concept of bitcoin may be adopted by mainstream finance but a lot will be lost. It may be an adulterated coin. Bitcoin may lose its value if more coins keep sprouting out from all corners.

Gavin Brown and Richard Whittle of the Manchester Metropolitan University said, ''2020 could well be the year the cryptocurrency dream dies. This is not to say that cryptocurrency will die altogether -far from it''.

How The Concept Of Bitcoin Can Fit Mainstream Finance:

The concept of bitcoin can fit mainstream finance but not in a way that would benefit the common masses.

Bitcoin or digital currency may be adopted into mainstream finance but the real idea of bitcoin can never fit into mainstream finance because a lot of water would have passed under the bridge and its major concept of decentralization would be lost. If that happens, then fitting into the mainstream will be beautiful nonsense.

The demand for digital currency has more than tripled since the pandemic, the government and mainstream finance will answer to this demand but asking if bitcoin will fit into the mainstream as we know it, is likely not going to happen so easily.

Nakamoto's idea is to make everyone transact without any form of human control. Such an idea is largely hard to absorb in the real world of finance especially when control is the main bargaining power.

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