Bitcoin emerged on the financial scene after the severe global economic crash that was seen in 2008. After the traditional fiat framework collapsed, people started to look for an alternative. The shift towards technological advancement was eventual in all this. Bitcoin emerged on the scene with the hopes to present forward a global currency framework that is decentralized with no central party controlling the entire framework.
But in the modern days, instead of being used a global currency, people largely focus on using it as a source of gaining profit. Some say that it is like gold, provides value, while others believe it should act as a digital currency, to make payments. So what is it exactly? The answer…the crypto world itself doesn’t quite seem to be sure.
Some experts of the game suggest that bitcoin is like gold while on the other hand, some believe that the global financial system can be completely revamped if bitcoin is used properly as a digital currency.
Only opinions can be given out at this particular moment regarding it being gold or currency. The role that bitcoin will eventually play in the long run isn’t finalized yet. It can either morph itself to be the digital gold, or it can become the digital dollar. The issue is, the crypto and blockchain world is itself pretty nascent, Developments are being made in this world day in and day out. Acceptance regarding crypto overall is very low across various countries right now. If bitcoin is to play such big roles in the financial market, the crypto world needs to grow and mature as soon as possible. Platforms like Bakkt are now coming up that will provide people trusted ecosystems for spending, storing, buying and selling cryptocurrencies. Such platforms will increase the worth of this world.
The establishment of a crypto-linked exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) is also pretty important for this asset to grow and mature so that an official trust can be established in the asset. Such developments will surely help improve the image of cryptos overall.
One thing is pretty evident that cryptocurrencies can surely help form global frameworks of operations. Transactions can be made sitting anywhere in the world. Completely new frameworks of buyers, merchants etc. can be formed if cryptos are used properly.
Now, regarding whether bitcoin is the digital gold or the digital dollar, we will still have to wait and see.