Bitcoin means an ambitious categorisation effort by regular financial companies resulting in some viewing this alluring new asset class as much as a hybrid of a currency as it is an investment.
Bitcoin has been declared as a commodity by the Commodities Future Trading Commission (CFTC). Bitcoin has also been classed to be a too property by the Internal Revenue Service (IRS). The Securities and Exchange Commission (SEC) sees over the market for Bitcoin as if it was a security however, Bitcoin is mainly used as a currency.
After being design by Satoshi Nakamoto, Bitcoin was intended to be the original cryptographically secure and blockchain-based currency, and is seen as the first cryptocurrency. Bitcoin is so secure that not even the most powerful and effective supercomputer could hack it so don’t worry about your Bitcoin transaction or wallet as they cannot be hacked. This is of course unless the password of the wallet software is revealed.
Bitcoin can be sent anywhere in the world which makes it a brilliant choice for international finance. No queues like there are with traditional banks when you want to send a lot of money, fees for Bitcoin are particularly low as well. An individual can send as much Bitcoin as they please for a fee no more than one US dollar. No fiat payment network around the globe could compare to Bitcoin in terms of fee efficiency.
It’s worth noting that Bitcoin is decentralised which means that there is a sense of freedom with it. Transactions and accounts can’t be seized or frozen. This is different to every fiat payment service globally, which could be seized or frozen at a moment's notice. From the sellers point of view, Bitcoin is great as transactions used with the cryptocurrency can’t be reversed so it makes it a lot safer for them.
Maybe at one point in the future Bitcoin could become the primary currency used throughout the world instead of an investment. However, for the time being Bitcoin is an alluring asset which is rich in value.
What do you think? Where could Bitcoin be heading in the next five or six years? Let us know your thoughts down in the comments!