Bitcoin was originally developed with the hope of eventually eliminating the need for conventional currency and traditional banks. Whilst cryptocurrencies, and in particular Bitcoin, have grown significantly in popularity, they have not become as mainstream as perhaps people thought they would do. This has led people to ask the question as to whether it ever will.
Warren Buffet, Oracle of Omaha has doubt that this will happen and feels that it might end badly for Bitcoin. He believes that there are a number of reasons behind this.
All cryptocurrencies on the whole trade against each other, as opposed to with each other. You can see all of these on various exchanges, but are not that easy to use. To put it simply, it is far easier to trade and sell dollars, stocks or commodities as opposed to Bitcoin and other cryptocurrencies.
Despite, crypto enthusiasts believing that the dollar will soon be obsolete, it is still being used. This is because it still remains incredibly widespread, accounting for approximately 65% of all global transactions.
There is no denying that the crypto market has definitely increased, and the total market value of all virtual currencies is approximately $600billion, and yet it is still very difficult to walk into most shops and pay for your goods using Bitcoin.
It is also interesting to think that when people speak about their crypto investments, they do not talk about how many Bitcoins they own, they talk about how much their coins are worth, in traditional currency. This could be because it is still a relatively new subject in the grand scheme of things, and the fact that the popularity is increasing so much, could suggest that it could take over from traditional currencies; however, the truth in the matter is that this would be difficult.
When you look back over time, and understand the history of money, you will see just how long it takes for a currency to become acceptable, which is why cryptocurrencies really do have a long way to go before it can even begin to take a claim on the world’s financial economy. That is not to say that it couldn’t happen though – it would just be difficult.
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