Is Bitcoin the Currency of the Internet

Everyone keeps referring to Bitcoin as the currency of the Internet; how true is this assumption? The truth is that Bitcoin does provide a secure and efficient means of transferring funds across the Internet. It is regulated by a decentralized network conforming to transparent rules and therefore it is a viable alternative to fiat currencies that are controlled by banks and governments. What actually gives a currency its value?

Currencies can be used only when they can store value. This means that you should be able to depend on them to retain their relative value through the years and bot depreciate. In this sense, Bitcoin continues to be the safest bet for investors because people have been using this functionally. So, if you are looking for a currency online that you can own and use today, it is the Bitcoin. Bitcoin continues to be the largest crypto coin in terms of market cap but has also come under the scanner because regulators are trying to decide how this can be used. The fact that it has established use cases gives it an edge over other crypto coins.

When Bitcoin Futures had been announced, it sparked a lot of excitement about Bitcoins and other tokens. Smaller tokens started to do well all on a sudden. But people have now understood that all technological advancements like smart contracts and lightning network are difficult to implement too soon. When it comes to sending money to other countries, Bitcoin is always the preferred choice. Using institutions like the Western Union turns out to be costlier and slower. You also run the risk of such money-transfers getting stopped by people. But, with Bitcoins, there is no such risk. Bitcoins are faster and cheaper, and no one will be stopped.

When the Bitcoin was launched first a decade back, it was decided that there will only be 21 million BTC and no more. Almost 18 million Bitcoins have been mined already and the protocol is still intact. To change this protocol would require a huge amount of computing power and that makes it practically impossible. Usually, scarcity drives the value higher and this is true of precious metals such as gold.

The Bitcoin is the currency of the internet because it is founded on the blockchain technology that is a trustless and decentralized system. Because of the easy availability of wallets, exchanges and other tools, it is easily transferred between parties, no matter how big or small the transaction may be. Since transferability is a key component of any currency, the Bitcoin can be regarded as one.

Unlike fiat currencies which exist physically and can be liable to damage or thefts, the Bitcoin does not have physical existence. This makes it all the more valuable. But bitcoins can be lost if you lose the private keys to your wallet. Finally, because of the complex decentralized blockchain edger, it is very hard to counterfeit the Bitcoin. If one were to do so, it would need a tampering of all nodes in the blockchain. It would require you to “double spend” but this is rather unlikely since this demands the hacker to have more than 51% control over the total computing power in the network. So, given all these arguments, it seems fair to argue that the Bitcoin is indeed a currency of the Internet.