In my eyes, Bitcoin has the change to turn a lot in our world upside down, whether that’s good or bad, nobody can probably predict.
In this article, however, I would like to give my opinion on this topic again.
Bitcoin as a cashless payment method?
Many are still debating whether Bitcoin can become a payment alternative, but Bitcoin is already one.
Bitcoin has 5.8 times as many transactions as PayPal, one of the largest and probably the most well-known payment method.
Bitcoin as a currency replacement?
The big question of questions will it ever happen that Bitcoin could be used as a currency replacement?
Per Bitcoin as a currency replacement
Here is my opinion there is the possibility that Bitcoin could be used as a kind of worldwide currency for trading from country to country. Otherwise, hardly any country with a stable currency that you can control yourself will replace it with Bitcoin.
Bitcoin could, therefore, close Nitsche as a world currency, which would mean fewer problems with exchange rates and currency exchange fees. Even the processing time for international transfers should be simplified and accelerated many times over.
Contra Bitcoin as a currency replacement
No company or Bitcoin will be handed over as the world currency instead of simply without a fight.
Amazon, Microsoft, and Facebook are all companies that research blockchain technologies and also have the necessary know-how to create a strong competitor product.
Thus, a company could secure power over a global currency that you can control yourself.
The energy consumption of bitcoin
There are some who keep appealing against Bitcoin due to energy consumption.
However, none of this media can really prove how much Bitcoin is using energy at all, since this consumption can only be estimated.
In order to determine whether Bitcoin has too high an energy consumption, one would not have to first compare the effort and energy consumption of other currencies.
Here are some factors to consider, some of which are often neglected:
- Resources expenditure for the production of the currency (e.g. banknotes)
- Transport the currency
- Administration for the currency
- Storage effort
- Security effort
I will only go into a few points so as not to stretch this article too much.
Here you have to see how much effort is being made to produce a banknote, for example. Because this banknote has to meet some security standards, various chemicals and valuable papers are required for this, and in the end, new notes have to be printed again and again.
Because these banknotes do not last forever or because the state simply puts more money into circulation (inflation).
Gold also has to be extracted from a mine with enormous effort and is then poured into bars in foundries with great energy.
The production for bitcoins works in principle through mining, one could say, which is technically not quite correct.
Most of the mining is done by ASIC miners (special computers)
Administration for the currency
Currencies like the euro require an incredibly huge infrastructure:
- bank branches
- Office building for employees
- Protected vehicles
- A huge IT infrastructure for bank employees and ATMs
All of this has to be considered in terms of resources and energy balance compared to Bitcoin, which many wrongly ignore.
Bitcoin only needs its miners for administration, as in many other areas.
This provides the computing power needed to process the transactions.
Personnel is also needed to keep the miners running, but the differences are hardly the size of the IT infrastructure that the banks have.
Specials will turn out even less because fewer people need to be looked after in the IT area.
Conclusion, is Bitcoin the future?
Bitcoin is not the solution for everything, but it has some good approaches and is wrongly criticized.
However, what will become of Bitcoin will only be seen in the future, everything else is fortune-telling.