Bitcoin as money offers many advantages over physical cash and government-issued currencies. For example, the price stabilizes as the money supply remains predictable, transactions are irreversible and impossible to block, bitcoin transfers have minimal fees which become smaller with volume, there is no central point of failure for a payment network that is being run on thousands of computers across the planet. If you are interested in bitcoin trading, visit The News Spy.
The emergence of bitcoin has generated a lot of buzz, but the question is, what if bitcoin becomes the main currency across the globe? As you already see some signs of that.
What would happen if bitcoin became the main currency across the globe?
1. Bitcoin Price
Suppose the demand to own bitcoin increases, the price rise because of limited supply. Then, as you can see in the current market, if someone asks you to sell one bitcoin that costs nearly $600, and you didn't know about it before and suddenly realize it today, then you will be panic and accept his offer at any rate even if its less than half the price.
This is just a small step of what can happen if bitcoin becomes a primary currency. As far as you know, there is only about 21 million bitcoin available globally.
Lastly, that amount will never be increased, so if 10 billion people are using it, one bitcoin could easily cost $1000000 "that's why it's essential to buy a small amount regularly instead of 1 lump sum". As it can be seen, the price is based on demand.
2. Bitcoin as Stock Market
If every country turns to bitcoin, you have a vast market where investors are ready to invest their money in bitcoin mining companies or start-ups working with me to make bitcoin more accessible; this market is new and untouched, you can make money by investing in various start-ups.
3. Bitcoin as Currency Black Market
Bitcoin becoming a main currency across the globe will create an open black market for drug dealers and illegal goods sellers. While some may argue that nothing will change from the current black market status, bitcoin offers a significant advantage for this part of the economy, which is "anonymity."
It's confirmed by a silk road owner who was arrested recently. Bitcoin also offers instant payments to anyone in the world through mobile wallets or services like BitInstant; this is one of the main reasons drug dealers started to accept bitcoin.
4. Bitcoin Accepted in More Places
You can see some signs of it already while you are seeing more and more web services like WordPress or Reddit accepting payments in bitcoins while many stores, restaurants, or coffee shops already accept bitcoin around the world.
As you know, every currency needs a strong economy that filters money to local businesses and companies; however, the bitcoin economy is growing day by day with the current 21 million supply limit.
5. Bitcoin Value Arbitrage
If you live in country A, which has a limited amount of goods like food or electronics, then the price for these goods will be much higher than country B, which has much more to offer. The same thing will happen if country A turns to bitcoin while country B uses its currency.
6. Bitcoin Decentralized Banking
Bitcoin is used worldwide, and there is no central authority for managing the money supply of bitcoin. This means that you can operate your bank with any amount and instantly transfer it to anyone in the world without paying too much feel like you are seeing on the current banking system.
3 Negative effects if bitcoin becomes the main currency in the world
1. Decrease in Power
As seen in the picture, the bitcoin network already uses tremendous energy. If every country turns to bitcoin, then that number will increase ten times or more, which will cause a real problem for the environment.
2. Market Manipulation
Bitcoin supply is limited to 21 million coins, and demand keeps increasing. This means that the bitcoin value will increase in the future. If every country turns to bitcoin, then you will have someone who can control the whole economy by decreasing or increasing the money supply, which is unacceptable for the government.
Conclusion:
The bitcoin price is not fixed, and it's based on people's demands. However, its limited supply will make bitcoin value in the future much higher than today. If every country turns to bitcoin, that may cause enormous environmental problems and economic manipulation.
