The Euro represents the second largest reserve currency in the world, but it also happens to be the currency that is traded the most right after the U.S. dollar. However, what does the euro have to do with Bitcoin and why are we discussing it now?
While comparing Bitcoin to any other type of currency is almost impossible due to the incredibly large number of differences, there is something quite common between the Euro and the cryptocurrency. Very much like Bitcoin, the euro was adopted at a time when all countries which were going to use it already had their own financial system and currencies set up, which meant that getting a currency like this in wouldn’t really make sense. However, as an effort to unite European countries and increase economic ties between those which are members of the European Union, the euro was adopted as the official currency of 19 countries at the moment, ever since the currency appeared back in the year of 1995.
What links the two currencies refer to the fact that even though countries in the European Union already had a stable financial system, all the way with official currencies set up for each, it was thought that the new currency would provide what was needed to make countries in Europe grow closer together and form a wide array of different economic partnerships. With this factor in mind, many have wondered why Bitcoin would be useful when there is already a fiat currency established in countries from all around the world. Well, in this sector, the Bitcoin can be considered the universal currency of the world, whereas the Euro can be considered the universal currency of Europe.
Back when it was released, the value of the Euro wasn’t high in value at all, and it begun with slight value stagnations and increases, very much like the Bitcoin. As years passed, more and more countries started believing in the coin and began to adopt it, which is also one of the main reasons it currently has this amount of success. As it has always been said that history repeats itself, if things go according to plan, this is also exactly what is bound to happen with Bitcoin. However, some aspects will be different, as no government will be adopting the cryptocurrency, but rather the people, corporations and firms which begin accepting and issuing payments with its help.
Based on everything that has been outlined so far, if there is another currency that people have desperately wanted to succeed apart from the Euro, which did, it is the Bitcoin. While there are many speculations about the future of the coin and what needs to be done to reach mass adoption, I would personally say that our society has to learn from the surprising luck and evolution of the euro and try to apply most of the same principles in the case of the Bitcoin as well, without limiting any of the benefits that it has the potential of offering.
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