Bitcoin started out as an alternative currency, outside the framework of the fiat monetary system. It has matured beyond all expectations in a very short time, but the focus has perhaps shifted within the cryptocurrency industry to the potential of the blockchain technology itself. With the storm clouds gathering as output slows and economists warn of a coming slump, it is time for the digital currency industry as a whole, and Bitcoin in particular, to push that alternative to the fiat system again.
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Economists are getting worried, and politicians are already getting their excuses in early, meaning that whiff of a new global slump is getting stronger. From Europe and the potentially damaging issue of the UK leaving the EU after the upcoming referendum on the subject to China’s ongoing slowdown, growth is stalling and businesses are preparing for the worst.
This is all bad news for people’s wealth, asset prices across the globe have been inflating significantly since the 2008 crash as capital shifted into tangible goods instead of what is now perceived as vulnerable fiat money. Indeed, after the legislative restrictions placed on bank accounts in Greece, in many areas holding fiat money seems like an inherently bad idea. But what does this all mean for the cryptocurrency industry?
This is in fact an opportunity, while big money is currently moving to precious metals, such as Gold, as a safe haven from whatever is coming, the industry should be proud of what it is and push Bitcoin as a viable alternative. In truth, Bitcoin has actually been a more stable proposition for holding wealth than even Gold in the last 2 years, remaining very stable price wise against the US$ as Gold has fluctuated considerably. Bitcoin also has other selling points as a wealth store through turbulent fiscal changes when compared to most asset classes, and in particular precious metals that are once again becoming popular.
Firstly, the barrier to entry is much less, that is potential investors need much smaller levels of funds to start using Bitcoin as wealth storage, opening up the ability to shift away from fiat currency for many, many more people.
Secondly, and this is perhaps very important for Bitcoin companies to stress, it is a much more secure and easy to use market. You can go to a Bitcoin exchange, whether that is an online version or in many places today buy them over the counter, and your Bitcoin wallet receives your Bitcoin. That’s it, and you have your Bitcoin, safe and secure. Contrast that with buying Gold, which is now so muddled that it is incredibly easy to get into trouble. Buying physical Gold is a journey in itself, many banks want to sell you Gold, most offer you a promissory note in return rather than an actual Gold Bar or Coins, which is fine of you are wanting to trade precious metals, not if you wish to safeguard wealth. In this respect, the matured Bitcoin market is a much simpler place to navigate and understand.
Bitcoin has always been an alternative to the fiat money system, the digital currency industry has perhaps been a little too focused on the underlying blockchain technology in recent years, but a new global fiscal slump is an opportunity to push cryptocurrency again as that safe, viable alternative.