Cash is gradually losing ground when it comes to payments, and to some extent, this is the natural path for a modern society stepping into the digital age at a rapid pace. Just as paying with credit in the early '90s was once unconventional, using crypto for everyday purchases is still a bit unusual these days.
I frequently use crypto to pay for groceries and other cashless transactions. However, I'm not directly spending any cryptocurrency; I'm using stablecoins to make these payments. The VISA card I use, issued by Binance, converts my crypto into cash and then facilitates my payments.
Arthur Hayek, one of the greatest economists to have ever lived, once said that money is one of the few things specific to the human species that has evolved so little throughout history. Coins and banknotes have been around for ages and don't seem likely to go extinct anytime soon.
In 2009, Satoshi Nakamoto, the creator of Bitcoin, introduced a brilliant alternative to the current monetary system: a peer-to-peer decentralized money transfer network. However, 14 years after the Bitcoin network was launched, we still haven't witnessed the mass adoption Satoshi envisioned.
The only significant example of Bitcoin being used as envisioned is El Salvador, which made Bitcoin legal tender about two years ago, a few months before Bitcoin's value peaked at $69,000. Other than that, Bitcoin is still primarily seen as a unique digital asset rather than a simple internet currency serving the purposes Nakamoto intended.
Excluding the Lightning network, Bitcoin isn't even capable of handling the daily transaction volume that VISA or Mastercard manage. However, neither VISA nor Mastercard can perform the functions that Bitcoin does. When it comes to traditional cash and payments, the centralized authorities that govern them can exert control over those networks at any time.
Not long ago, during the Canadian truckers' protests against totalitarian COVID measures, the only way authorities could attempt to stop them was by freezing their accounts. Bitcoin came to the rescue, with the truckers receiving Bitcoin donations. However, to use that Bitcoin for everyday purchases, they had to exchange it for physical cash.
Currently, there are no signs of Bitcoin becoming a globally accepted payment currency. But will it ever become a currency? Yes and no.
As history has shown, in times of trouble, alternative forms of cash become essential, and that's when Bitcoin shines. However, as long as the conventional financial system remains stable, most Bitcoin users and holders are not inclined to use it as a currency—unless circumstances deteriorate significantly, as in Turkey with soaring inflation or in Argentina.
Countries facing severe financial conditions will be the early adopters of cryptocurrencies. Yet, it's important to remember that crypto isn't just about Bitcoin. The demand for stablecoins is on the rise.
VISA and PayPal have hinted at the mass adoption of stablecoins as forms of payment, and Elon Musk has also suggested that X (formerly Twitter) will become a major player in the financial world by introducing money transfer and payment options in the near future. X has recently obtained a license for handling crypto, signifying a departure from traditional approaches to payments.
HBD of Hive is also a viable candidate for alternative forms of money within the current system. There are already some locations in Cuba accepting both HIVE and HBD in exchange for goods and services. However, as with credit in the early '90s, the acceptance of crypto as a form of payment will initially be met with hesitation and skepticism.
The way governments and central banks handle economic data in the coming years will likely drive the demand for cryptocurrencies to be used as actual money beyond our current expectations. For now, we're off to a slow start, and it's doubtful that Bitcoin will become a currency anytime soon, unless a world-altering event like WW3 occurs. What are your thoughts on this?
Thanks for your attention,
Adrian
Posted Using LeoFinance Alpha
https://reddit.com/r/btc/comments/16l04ld/is_bitcoin_ever_gonna_be_a_currency/
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So, I finally surfaced to Reddit? 😀
It is an uphill battle for sure. Governments and institutions want to keep the power they have by having control of money. Recognizing bitcoin to be as good as cash means giving up control. Something I don’t see happening anytime soon. Especially for nations on top of the economy. And Im even willing to bet they would find means to delay the progress of bitcoins adaptation globally.
This is a revolution of the people. We should not expect any signs of mass adoption coming from governments. Bitcoin is the panacea.
Exactly. Main reason im here in Hive is to be part of this digital revolution. To Give back the power to the people.
Hive is undervalued for its disruption potential. To some extent it is better than Bitcoin in this regard.
I have the same exact thoughts. Severely undervalued is Hive and for it to 10x, I wont even consider it the max potential. At 100x might be a bit over but still justifiable.
100X would be great. Seeing more social media influencers coming to Hive would also be great.
👍👍👍
😉
I believe that Bitcoin will remain as an refugee asset or value protector, for payments will be adopted other cruptocurrencies like #BCH or Hive (HBD).
Of course, Bitcoin can be used for payments if increase his blocksize or LN get a full adoption (or another 2dn Layer come out for these purposes).
True. Bitcoin as it is can only function as money for currency exchanges between states or big businesses not for retail use.
I live in a neighborhood dubbed "Bitcoin neighborhood". Most of the merchants that accept Bitcoin use a lightning POS.
And a few cities around the world are considered Bitcoin hotspots. I think with the help of Lightning and HIVE, Bitcoin will gain widespread adoption.
https://www.investopedia.com/articles/forex/042415/10-cities-leading-bitcoin-adoption.asp
damn , ill love to be where, you are,
if your neighborhood is bitcoin neighborhood mines
hard coin neighborhood,
and feel thats what of the reason why bit coin hasn't even gained adoption yet, cause a lot of people do not, know about it yet, especially in my neck of the woods.
Nice. That's the mass adoption I'm expecting from crypto. Taking the power away from the bankers while they sleep.
its going to take a very long time
And it's going to be a twisted road...
Such a rhetorical question, I think the journey to achieve that is still far.
Most certainly.
With the power of Lightning network I believe so. But in the same time, being a powerful store of value, people might be Hodlers rather than Spenders, thus we might not see it fly around from one to another.
True. Only in extreme conditions that will change. However, as pointed out in the post, the way for mass adoption for stablecoins as payment currencies is somehow paved by Bitcoin.
The adoption is growing and gradually gaining momentum. Hopefully, there'll come a peak that crypto won't be ignored.
It's hard to ignore it at this point.
Surely.