What will Bitcoin be in the future?
Initially, cryptocurrencies were unregulated, so there was no need for any regulatory process to initiate bank equivalents. The problem is that when using a virtual currency like Bitcoin, users have to deal with other currencies, exchange rates and any value uncertainty associated with them, leading to concerns about the ability of the currency to hold its value. It is. Inevitably, this has reduced the appeal of start-ups such as Circle and Ripple. The advantage of virtual money is not that it is electronic money. Today, the dollar, euro, yen and Yuan are all electronic currencies. On the contrary, its advantage is that blockchain technology provides an independent alternative to traditional payment and remittance systems. It’s as if all bitcoin users are paying at the same bank.
Technology linked with the bitcoin
So, if people want to integrate payment
systems, do there need to be multiple intermediaries? Instead, why not just
send payments through a central banking function? If everyone has an account at
a central bank, and they are connected across borders, a centralized ledger for
the economy as a whole should be created. It can certainly improve the speed,
security and efficiency of payments. The BTC Profit is best platform of bitcoin
That’s why the companies are looking for
ways to step back from cryptocurrencies and apply the technology to traditional
currencies to connect directly to banks and central banks.
Banking system and bitcoin
Several central banks are exploring this
idea, but at the moment conclude that the risks to the financial system are so
great that the benefits are uncertain. But if that happens, the financial
system will definitely change.
Banks are not involved, and there is no
single issuer as we did earlier, so when it goes down, the Bitcoin network is
built up by more than 10,000 nodes. Then, another point is that the Bitcoin
mechanism itself survived despite the collapse of Mount Gox. He thinks these
two points are very important.
This is because Japan has a very common
misunderstanding about this point. They often say, but let’s say you travel to
the US and take some dollars.
As said at the beginning of the
presentation, the most notable thing about Bitcoin technology is that it has no
operator. Therefore, in that sense, it is different from conventional
currencies and electronic money.
In other words, in a decentralized network,
untrusted subjects and people operate, and as a whole, it works well. Whether
such a system is possible is a long-standing problem of computer science, and
until now it was thought that there was no solution to that problem.
So it is important that this problem is
solved by a completely new technology called blockchain technology. This is a
problem traditionally called the Byzantine General Problem in the field of
Bitcoin is the first solution to that
problem. In that sense, it’s a huge breakthrough in computer science. He thinks
it is very important to recognize that first.
Right. For Bitcoin to become widespread,
the banking system must be manageable. You think it’s the most appropriate
because banks are trusted by consumers. They have to be able to handle Bitcoin
The appearance of the outlaws, who left
their hometown and headed west to make a fortune. Soon, however, too many
people dreamed of getting a lot of money, and money was not easily available.
Mining operations were resource intensive and required water to blow the mounds
away. In other words, the scale has expanded so that only a few people can
install pipes and water conduits.
The key was to be “open.” Bitcoin wasn’t
that valuable at the time, but it could be a boon to anyone. The underlying
technology blockchain seemed to secure it by eliminating the need for
intermediaries. The platform would have maintained our independence and
In turn, Bitcoin has become a financial
product. Together with the pension fund, it became an investment target of
banks. The Commodity Futures Trading Commission (CFTC) in the United States has
defined Bitcoin as a commodity, just like gold.
Author : Jake Simmons