Bitcoin Fad Dies Down As People See The Value of Digital Currency

Slowly but surely, people are starting to take Bitcoin more seriously. Even though the public perception of digital currency revolves around “fake internet money used by online criminals”, there is overwhelming evidence stating the exact opposite. Fiat currencies and stock market assets all over the world have been crumbling in front of our eyes while Bitcoin keeps a steady price course. The advantages are clear for everyone to take advantage of, and there is no reason not to focus on Bitcoin right now.

Also read: The Mizuho Financial Group is ready to employ blockchain technology

The Bitcoin Fad Stage Is Over And Reality Comes Knocking

Any form of alternative finance is always greeted with a lot of skepticism and hesitation, which is only normal. The concept of digital currency has taken a major reputation hit thanks to money laundering schemes such as E-Gold and Liberty Reserve, both of which were shut down by law enforcement agencies not too long ago. However, both of these systems had one major flaw: human central authorities controlling the network.

Bitcoin is not dealing with any of these shenanigans, as there is no one to manage the system. Governments around the world may try to come up with regulatory frameworks for companies, but there is very little they can do at the end user level. This is the way finance should work, as the consumers hold all the powers, and not governments or corporations.

In the early years of Bitcoin, people saw the digital currency as a tool for internet criminals. But the tone of that discussion has changed in recent months, as various financial experts are calling for the removal of paper money, such as the US$100 and EUR 500 bills. The reason for this change is simple: cash makes it far too easy for [online] criminals to go about their business in an anonymous manner.

Creating a financial ecosystem that is only used for legal activities is utterly impossible, and Bitcoin will never be an exception in that regard. But at the same time, all of its transactions can be tracked in real-time, giving it a major competitive edge over cash or other traditional payments. The illusion of anonymity quickly vaporizes when Bitcoin is being used, although the public perception will tell you otherwise.

No one is claiming Bitcoin has never been used for nefarious activities, as the evidence is clear for anyone to see. But most of this negative PR image comes from misunderstanding and the lack of willingness to learn how Bitcoin works. There is still a long road ahead until people actually value digital currency for what it stands for and how it can be used.

Source: Marketwatch

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