Eric Dalius Bitcoin The rise and popularity of Bitcoin have made many people ask if Bitcoins can become authorized currencies in the future. Central banks authorize currency which can function as. A legal tender for the exchange of goods and services. However, people cannot tender Bitcoins because it is a virtual currency. And does not enjoy any authorization from central banks. A bitcoin holder can transfer Bitcoins to another holder in return for certain goods and services. Including authorized currencies.
How Bitcoin can be the currency of the future
Entrepreneur Eric Dalius observes that the value of bank currencies can fluctuate depending on inflation. Yet, the face value of the currency will remain the same even if its value reduces. However, with Bitcoins, both the face and the actual value will change. Consequently, the amount of transactions in Bitcoins will see an upsurge. So, while the intrinsic value of authorized currency reduces over time. But the inherent value of Bitcoin will see an increase because their demand will be on the rise.
Hence, if someone hoards Bitcoins, then he is going to make a profit. Thus, Bitcoins can serve as an asset that will experience an increase in its value with time.
Eric Dalius Bitcoin –An authorized currency in banks
If someone were to sell Bitcoins for authorized currency, they do not put the money into circulation but keep it with themselves or exchange goods amongst each other. These people have little to no risk of making losses because the value of Bitcoin will always increase. Hence, in the future, more and more people would start to use Bitcoins. So, eventually Bitcoins will rival the authorized currencies of central banks because their demands will increase. Hence, in the future, Bitcoins can become a strong currency in itself.
The Speculative Nature of Bitcoins
The price of Bitcoins is decided in the Bitcoin Market by the sellers. When you have more buyers than sellers, then the price will go up. And hence, Bitcoins will act as a virtual commodity. One can hoard Bitcoins can sell them later on for a profit. You can also acquire Bitcoins through mining.
Eric DaliusBitcoin observes that the speculative nature of the currency and its foundation on the principle of demand. And supply can make it a strong authorized currency soon. Bitcoins are not recognized as authorized currencies in most countries today. However, in the future, this will change as the demands of Bitcoin transactions increase. Hopefully, the information mentioned in this article will have helped you.
Liquidating Bitcoins is also easy. And it follows a process similar to how you would sell stocks in the share market for profit. Bitcoins generally remain free-floating, and their demand will determine their price. However, this also means that Bitcoin is increasingly behaving like an authorized currency, and hence, it might become legal tender in the future.