Ankur Agarwal is an ICO investor and cryptocurrency expert. Today he shares his views on Bitcoins and some general economic ethics which takes a vital role in growing economic stability.
In this article, we will be taking you through the history of bitcoins, and answer a question on whether Bitcoin can revolutionize the way economies work, and also answer another question on whether Bitcoin can determine the stability to any economy.
What is Bitcoin?
In simple words, it is an intangible digital currency which cannot be drawn in the form of cash directly. It came into existence about half a decade back when Santoshi and co-led an approach to develop a coin with the help of Blockchain technology.
The coin started well with a jump of almost 1000% in its price in the first week of its launch and then went on to grow high. Eventually, it caught eyes of the world and people started investing a lump sum to gain assets for the future.
Majority of them made huge profits, and some even came into the billionaire’s list like the Ripple founder. The world didn’t know the purpose behind existence and no one never really discovered the exact match of Blockchain Technology.
Now, we will go ahead with answering a couple of questions.
First up, we would like you to the two of the most recent incident where
- Bitcoin was listed in the stock exchange in the U.S
- One day, in Japan it was one of the most traded commodity on their national stock exchange.
These are the two of the biggest highlight for Bitcoin interns of positive effect on the economy. There’s another side to the same, and it’s India banning the trade of any CryptoCurrency, and all the platforms involved in the same.
There’s an irony to India banning and Reliance and their government starting a coin called Jio coin and Lakshmi Coin respectively.
That’s where the question lies, is it really about the economy and its effect on the same?
The most accurate answer would be on how a nation approaches the medium and promotes either negatively or positively about the Cryptocurrency.
There were talks about many currencies being a scam, and recent downfall in the process of the majority of the currencies has taken everyone in the stage that Bitcoin might be a bubble and a scam that is soon going to burst.
Bitcoins on Economic Stability
Though many Bitcoin success stories are roaming around on the internet, the traditional investors still do not consider Bitcoins or any other cryptocurrencies as the safe investment option.
It is debatable whether Bitcoin is an investment or a currency. Investors have raised concerns about the lack of security and the risk of getting hacked. Cryptocurrency exchanges are the top target of the hackers.
A South Korean cryptocurrency exchange named You bit has declared bankruptcy in 2014, and the reason is the hackers have stolen their $450 million worth of cryptocurrencies. Apart from the security aspect, the value of Bitcoins fluctuates every day. It’s unstable which means there is a chance that you may lose all your investment in a short span. It is a gamble!
Now, we have read more negative than a positive point on the currency, and we can assume a brief on how Bitcoin has been affecting economies.
We would remain on the point of how the economy sees the purpose of the coin and uses it. The likes of U.S and Japan greeted them with positivity but the likes of India, Bangladesh didn’t greet them well.
So, the whole question is tweaked, and you would never know the answer of the question as it would revolve around again and again with different purpose until majority unites and decides as a unit on what to do about it.
Wrapping it up, If we ask today’s investors whether they will invest a $100,000 on real estate or digital currency, they will go with a digital currency. The concept has made people smart but before that do, we even know the use and purpose of the currency, and a great investor would always recommend you to invest in things for which you know the purpose and also its future.
It leaves us to another question on whether a rational investor would like to invest in a digital currency like bitcoin or hold off the money in a traditional way of stocks and real estate.