This article is my thought piece and has no relation to my professional life in any sense.
After reading this article, you will be able to tell the exact day (no! not DATE) when BTC will be successful (sounds stupid right!). So, I will say to you one condition, and if it is filled tomorrow, you can assume BTC has served its real purpose.
What is the real purpose of BTC?
We are using BTC for making more fiat money by trading and speculating (don’t even dare to utter the word INVESTMENT). The real purpose of BTC is to replace the current fiat currencies. (yes! read the title of BTC white paper) It is Peer-to-Peer electronic cash which is limited in amount and should (it will) replace the current fiat currencies.
Wait, what? But why?
Because fiat currencies do not represent money, they lose value, they are printed and circulated without any control, and it just increases the debt ceiling.
If you don’t know different between money and currency, youtube it and watch series “Hidden Secrets of Money” by Mike Maloney.
Brief about Money: Money contains value and currencies are something that represents the value. Money is a dollar, but a printed note of dollar is called currency. You can touch a 10 $ note, but there is no exact physical thing called the dollar. It’s a virtual thing made via consensus of a group of people (called citizens). We printed a paper written 10$ on it and accepted it as 1:1 representation of money (which is currency note). Assume that Mr Tom has a 10$ note that has the power to buy 10 Apples(1 apple worth = 1$). Now, Mr Dan is greedy and prints another 10$ note (thinking he is creating more money). He goes to the market to buy apples. Whoila! There are 2 people giving two 10$ notes (total 20$) for 10 apples (1 apple = 2 $) The moment we print another 10$ note prices increased(inflation), and currency lost its value (not Money which is $, in our head).
These things happen in the real world, and that’s why 100 Rs note has less value today than 2 years ago. I just gave a brief of 5 hours video series in 5 minutes.
What is the condition for BTC to be successful?
The day we will start taking BTC as the base currency and value other currencies(including Fiat) with respect to BTC, will be the day BTC will be successful. It means you will see 1$ is valued x.xx BTC, not like today we see 1 BTC is equalled to xxx USD.
Satoshi should replace cents. USD is printed without limit, BTC is not.
The path is not easy, there are multiple advantages of a centralised government issues money. When events like QuadrigaCX happens, people are turning to centralised government for help when they actually acted for the decentralised network. This kind of events will happen, what about frozen BTCs in cold wallets? The iced coins are hindering the liquidity. How will we transact BTC without internet? Without electricity? Will we wait for the transaction to complete to buy a packet of bread? In this situation, USD looks easy. There are lots of questions like this.
This article just puts light on a new idea, please comment your views on that.
written by: @tejassuthar777