Bitcoin is one of the most famous cryptocurrencies available in the market whose function, just like any other currency across the globe, is to be the means payment and exchange for services, products, repayment of debt, and penalties.
However, one thing that stands cryptocurrencies out is the fact that they don’t exist is the real world and if it wasn’t for the increasing digitization, we wouldn’t have heard of this term.
A recent and continuous climb, and not a cyclic one but an erratic and unpredictable one as history suggests, in the bitcoin value, whose current market capitalisation exceeds $1 trillion, makes it ever more relevant for investors and entrepreneurs the world over to think about it at length to whatever conclusion.
The fact that bitcoin continues to narrow gap to the historic peak, and with many analysts forecasting it shall rally past $75,000 (Rs1.18 billion) mark by a few months, makes this asset, or as many would call it a hedge against inflation and global recession, an option for big moneys, corporations, and asset companies to try their luck in after gold demand has already outstripped its supply pushing it to unparalleled heights.
And while many have attributed bitcoin’s gains to signs it is winning acceptance among mainstream investors and companies like from Tesla and Mastercard some are still skeptical of the patchily regulated and highly volatile digital asset as they assert its current prices are well above estimates of fair value.
Cryptocurrencies, if regulated and rendered legal tenders like fiat currency of any country, or gold for that matter whose value, with inappreciable fluctuation, remains same acorss the world, can be used as universal mode of payment without any intermediary or financial institution to manipulate its value or control its exchange.
However, it’s most sought-after benefit also makes this most vulnerable to be used by notorious businesses and illicit trade as it’s cryptography, while makes it securest currency of the world with almost no chance of double-spending or data theft, it also makes its transactions undetectable and untraceable.
A drug lord and human trafficker ring can use cryptocurrency just as conveniently as a virtual vemdor selling you makeup products. Which makes it the most susceptible mode of transaction to all notorious schemes and even for terrorism-financing.
This is amongst the principal reasons cited by many who oppose the blanket and unregulated use of cryptocurrencies and to circumvent this issue, many countries have allowed the use of certain virtual coins while some have in fact hammered out their own virtual cryptocurrencies.