It is the cryptocurrency par excellence. That started a fever for this type of digital Exchange system that has become topic of debate for economists, technologists and users. The bitcoin fever has gone through all kinds of stages in its short life, and now seems to be somewhat more settled after some changes in value that seemed typical of a roller coaster that of a currency that aims to become the future of economic transactions around the world.
Despite that unique and unpredictable behavior, there are many who they are convinced that bitcoin prevail. One of them is the Argentine entrepreneur Wences Casares, Xapó – company that provides secure bitcoin wallets – responsible for. According to his opinion, the use of mobile phones will make billions of people around the world have money than it is not controlled by traditional banking and credit systems, and bitcoin enables to make the leap into the future.
Far superior to the standard gold
Casares indicated in an interview recently with Business Insider for the bitcoin was “the best currency that has ever been in the history of civilization”. The payment in kind was replaced by the emergence of different coins, and much more recently Gold was used as a pattern for the entire monetary system.
Any currency (or in this case, pattern) really relevant has some key features like the fact of be a particularly scarce resource. It must also be divisible, durable, fungible, transportable and recognizable. Gold is a perfect candidate as the standard currency for these characteristics and above all by their scarcity, but according to Casares bitcoin is much better that the gold in all of those features except in one. Bitcoin advantages are for example apparent in this new era of information that transfer money necessary intermediaries. The assignability of the bitcoin is “revolutionary”, as also as its divisibility.
The only downside is that characteristic of the expendable property: “If someone offers you two identical gold coins, should not matter to you which one you get, it is exactly the same. Really fungible. In the case of bitcoin, each bitcoin contains in it throughout its history”. That would something more preferable for example not take bitcoins that have been used, for example, to make payments to Silk Road.
Except for this limitation, he said the entrepreneur, the advantages are fundamental. Not so much perhaps for those 1,000 million people who make use of traditional banking systems, but to those other 5,000 million users “who are abused for not having a bank account or a credit account”. Bitcoin revolution will go even further than the revolution caused by internet according to the creator of Xapó. Especially for those 5,000 million people who will have access to a system in order to safeguard their money and make payments much more safely and efficiently so far.
That transition, however, will take time. According to Casares, between one and two decades, but that won’t make it disappear the traditional currency. “I don’t think that bitcoin go to replace the money or should do so. […] But I think that we need a global type of currency, something like a meta-moneda.” This revolution will be similar to that occurred with the Internet, in which people will simply give for granted the existence and use of bitcoin as it now does with the network of networks.
Micro transactions to power
Although this cryptocurrency applications look almost limitless, there are two use cases that Casares focused. One for developed countries and other emerging economies. In the case of developed countries, the objective is clear: despite the power of the internet, We do not have a valid digital currency to facilitate those transactions.
We are still using conventional currencies, but a cryptocurrency as bitcoin would solve this limitation and enable themes such as micropayments and the micro-transactions, that it would surely facilitate all kinds of commercial scenarios which are now very difficult to carry out. Remove these ads on YouTube that bother me could cost 1 euro cent, something that we could for example solve much more easily with this coin in which the divisibility is exemplary. The advantages over systems like the new Apple Pay are obvious according to Casares. Especially because that is “a closed ecosystem”, in which immediacy is fictitious and that in addition there is an important Commission that ends up in the hands of entities such as Visa or Mastercard.
There are various problems with current currency systems. They are expensive. They are unsafe. They carry huge transaction costs. And I think that bitcoin can be the way in which these people [the 5.000 millions of people in those emerging countries] can participate. They have their phones and can use them to do things that you or I we made.
Is it the revolution, something inevitably bitcoins?
The truth is that despite these frantic slopes and rises in your quote, the most famous cryptocurrency of the world – that which have left him a few competitors – is becoming in a standard de-facto in an industry in which they begin to cooking unique ideas. Ecuador created his own cryptocurrency a few weeks ago, the United Kingdom has revealed its plans to regulate the use of bitcoins, and the U.S. State of New Hampshire is considering the adoption of a law that would make it possible to pay the taxes with bitcoin.
The mere existence of these initiatives It makes it clear that the criptomonedas seem to be very tied to our future. May that bitcoin is not chosen in a universal way, or be it more than in some cases, but it is one of the bases of this concept, the chain block, chain block, is that really opens the door to other options that meet possible limitations and problems (such as robberies that have occurred) that they find in the implantation of bitcoins.
Either way, the arguments that Casares exposed is compelling and probably scared, and much, to Governments and financial institutions. The high volatility of this cryptocurrency is probably the most striking today, but in bitcoin and the concept that encompassed many advantages are hidden. Too as bitcoin does not have a significant impact, it can be that huge, our future.