To truly understand what a Bitcoin takeover would look like, we should understand the meaning of FIAT currency or FIAT money. FIAT money is basically money declared by a government to be legal tender or the medium of payment that a legal system recognizes as valid when a person is required to meet a financial obligation.
FIAT money is unlike older styles of currency in that it is not backed by a physical commodity. For example, US dollars used to be backed by a physical commodity in gold.
For Bitcoin to take over, we would need massive government backing. Being decentralized, Bitcoin offers no incentive to governments for the backing. Governments have no reason to back or tolerate any form of cryptocurrency and we can see this in China, whose government has started to lock down Bitcoin altogether.
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A huge step in the favor of Bitcoin would be national adoption. This means that the majority of the population will be using cryptocurrency. The federal government should also have multiple regulations to accommodate for transactions made in crypto.
Further development along the same lines is for multiple countries to use the same cryptocurrency. This would make international trade much easier and efficient. Although this would be a gradual and slow step, it would certainly be a prospect for a Bitcoin take over.
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Multiple analysts have predicted the future of transactions, both digital and physical. Many expect Bitcoin to fully replace fiat currency, whether it’s in five years or a decade. Even now, multiple countries have started forgoing paper currency. Sweden, one of the countries to originally begin experimenting with paper currency, could soon abandon it in favor of exclusively electronic payment.
Although global crypto certainly has its drawbacks, as of now, it definitely seems like the future for transactions in modern countries. These drawbacks could also be mitigated with the help of, if convinced, governments as well as multiple private organizations.