I’m not a full-blown bitcoiner. I don’t own any. But I think that bitcoin has a legitimate chance to change how currency is handled in the future. (Already changing in the present) I don’t think Bitcoin is end all be all of currencies. My only two criticisms of Bitcoin are the following: lack of acceptance among many retailers and security issues. I have been thinking about investing in or more likely mining some Bitcoin. For me to go all in, I’d like see a few things happen, some of which have nothing to do with Bitcoin itself. This post will probably be shorter, but I’ve been thinking about this for awhile now. Back to my criticisms, I believe acceptance will come over time, there’s no sure way to force it. The security issues will be fixed as well especially if acceptance becomes the normal. You might be wondering what in hell I might want to happen.
Let me first explain a concept that already exists in today’s world: currency exchange. If you’ve ever traveled to a country with a different currency then you probably dealt with exchanging currency. Personally, I have exchanged Pounds, Philippine pesos and Korean Won. A currency exchange is market place where different currencies are traded against each other. Any currency can be exchanged with any other currency. But typically the currency you normally carry, if your an American that will be dollars is traded against other currencies. The value of the dollar is weighed against lets say pounds. So as of writing this, 1 US dollar is the equivalent of 0.76 Great Britain pounds. One of the benefits of currency exchange is the ability to know which currency is stronger in terms of value. There also other factors to determine how stable a currency is and whether or not its being inflated. The problem with government issued currencies is that they are almost ALWAYS being manipulated either by a government or a central bank. This leads me to my first thing that I want to happen: A few Bitcoin competitors.
If you are up on cryptocurrencies, you probably already know that there isn’t a true competition to Bitcoin. Its the best one on the market. Bitcoiners often call other cryptos “shitcoins”. Unfortunately for Bitcoin, I’m not a fanboy just a causal spectator. I would love to see a few other legitimate, life changing cryptocurrencies to challenge Bitcoin for the top spot. I think some challengers would help Bitcoin tremendously. Currency exchange is the exact reason why, some competition would benefit Bitcoin. Of course, when Bitcoin is traded for US dollars it will dole out big returns because the dollar is inflated and devalued into actual piece of paper is. The idea is that each different top cryptocurrency would offer a certain advantage that the others don’t have. I think having multiple currencies in an economy has more advantages for everyone. For the consumer, it means more purchasing power. For the business owner, it means more investment power. It could even better savings ability anybody. There could be a currency for every kind of financial tool.
I think Bitcoin would benefit greatly from competition because each cryptocurrency would have to compete in both ease of use, security, and usability. Not only that, a currency exchange among them would help potential users determine which one gives the most “bang for their buck”. Imagine being able to choose the best currency for the task you want to achieve. I think of it like having a toolbox. You don’t just have a hammer for every single task. You have different tools for different tasks, like a screwdriver, drill, wrench..etc. I believe that how money should be as well. I think the sky is the limit when it comes to cryptocurrency being useful. The way money is handled now all digitally means the transition wouldn’t be as tough for most people to adopt.
I think another thing that needs to happen is Bitcoin along with competing cryptos need to produce some kind of physical form. Sounds old school, yes. But I think there is distinct security advantages in having a physical copy of certain things. I also think this will happen with adoption process especially among older users. There is potential that physical money could be phased out completely. But having a physical manifestation of the currency you hold might calm the concerns of some apprehensive users.
In conclusion, Bitcoin can in fact get better if it has legit competition. It can gain wider acceptance by competing with other coins. It’s security features will grow over time by the increase in users. I believe that an economy using multiple currencies with distinct advantages would be a very healthy economy. I think giving people different tools for each financial transaction or task is something that we lack now. I mean what does the dollar really do well? (Besides lose value) I’m hoping that in the future, I can finally attain some Bitcoin. I really like the future that it presents for currencies everywhere.
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