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The virtues of Bitcoin, more than just money

May 5, 2020

Since its founding in 2008, Bitcoin has been considered purely commercial and downplayed the importance of technology that has never been seen before.

Strictly speaking, we have the clear ability to underestimate the achievements if we cannot understand or control them. That’s why Bitcoin has caused so much stir since its inception.. The versatility that Bitcoin apparently has is threatening the traditional financial structure.

We have a problem now, How do we compare bitcoin? It is impossible because there is nothing in the world that matches, resembles, or at least approaches, so that it can be compared. We can perfectly compare the way we communicate, the technological advances in communication, from the use of slot phones to the 24-hour connection to the Internet network and seven days a week via smartphones.

The virtues of Bitcoin, more than just moneyThe virtues of Bitcoin, more than just money

When we refer to Bitcoin, we cannot just refer to its value according to the market priceAlthough it is true, it is important, but it is no less true that it does not turn out to be fundamental. Bitcoin’s revolutionary philosophy represents a form of financial independence. If we’re talking about the impossibility of comparing Bitcoin to anything else in the previous block, that’s really true. Since the 7th century BC BC, when the currency was created, we had been tied to a financial system for more than two thousand years, and therefore programmed to cope with the system.

Trust in new technologies is a difficult task if, unlike the Internet, which was designed as a form of communication and has been developed over time, it is something imperceptible. People who used it couldn’t touch it, but they knew it would get an answer to its use. After a decade of use, there are still those who believe that Bitcoin is a mere financial utopia, but the reality is that it has more properties than shortcomings, so it cannot be doomed to fail.

Bitcoin can be better money than anything else we use today. It’s more difficult to fake, easier to transfer, and impossible to close or censor. Indeed, it is divisible, dispensable, portable, durable, uniform and of limited supply.

When we say that it is divisible, it means that it can be broken down into smaller units of value. It is unnecessary because one unit is considered interchangeable with another. Portable has deduced that people can take money with them and transfer it to others. Long-lasting because, unlike banknotes, it is an item that has to withstand repeated use and does not deteriorate because it is intangible, which does not generate pressure and thus inflation. Acceptably, this refers to the ability that everyone should be able to use money for transactions.

Uniform is related to the fact that all versions of the same denomination must have the same purchasing power. The limited supply is the amount of money in circulation, which ensures that the values ​​remain relatively constant.

Bitcoin has almost unlimited potential because it allows innovations without permission, is decentralized and programmable. This means that it can evolve, adapt and improve. It has spawned a host of other projects that use some of the blockchain designs initiated by Bitcoin. Many are money thefts that are designed to exploit a lot of greed and misunderstanding, but there are also a number of legally exciting projects, some of which may have even more potential than Bitcoin.

The most striking thing about Bitcoin is that it brought with it another new technology called blockchain, This has been implemented in numerous cases from 2008 to now in order to efficiently solve certain situations worldwide.

The blockchain is developing into a solution for simple and everyday needs that are to be implemented by companies and public institutions. Blockchain’s ability to provide transparency, immutability, and security to the data hosted on the network makes it the only one of its kind. For example, governments could use blockchain technology to fight corruption efficiently because its verifiability and immutability ensure transparency in itself.

In Latin America there are already examples of trust in the use of blockchain and the use of exchanging Bitcoin and other cryptocurrencies in general. The data shows that countries such as Venezuela and Argentina, for example, have the largest bitcoin exchange flow in the region, which is reflected in the continuous and permanent use of bitcoin as an alternative financial system to the traditional financial system.

High inflation, exchange controls and the free trade shutdown have prompted these Latin American countries to increasingly focus on the use of cryptocurrencies as a paradise of value and as a financial lifestyle.

Reality shows that both Bitcoin and other subsequent cryptocurrencies are the most emerging market in the Latin America region. For this reason, large investments are being made in fintechs and by governments that are already beginning to experiment with stablecoin, tokens and public blockchain that are enabling the rise of Industry 4.0 technology.

Bitcoin will herald a fundamental change in society because it will permanently disrupt the balance of power. It will drive a trend towards decentralization and take power from the big ones

This is the greatest potential, but also one of the greatest obstacles. We are so used to a centralized world in which we have little power or responsibility that everything else seems suspicious. A major obstacle to Bitcoin’s growth is fundamentally how different it is, as we intuitively fear the unknown, in addition to the fact that we have a millennial level in which the traditional financial system works and understand that this has changed, because it will take much longer than we could have expected.

Bitcoin has created an alternative not only to money but also to power. Technology is still young and it is too early to say exactly how Bitcoin will change the future, but it is certain that it will. In this order of ideas, it must be emphasized that the commercialization of Bitcoin enables a certain amount of cross-border financial freedom in quantities that go unnoticed.

The use of blockchain as an exchange technology, and especially bitcoin, creates normal skepticism for those who don’t know it. The difference to the Internet is that the network was used to send and receive communication. Now Bitcoin carries a money-borne risk “in your pocket”, and at these times, the risk of latent frauds will undoubtedly create distrust of the new users concerned.

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