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The cryptocurrency asset boom sustainable

The cryptocurrency asset boom sustainable

Bitcoin is not trying to replace INR/USD. It is more a competition to gold due to its 'store of value' feature. Finite supply, with mathematically driven inflation, gives Bitcoin this power.Ethereum, on the other hand, is like Digital Oil (as stated by Winklevoss brothers). Smart Contracts, Decentralised finance, NFTs are built on Ethereum (this is the most popular blockchain for powering these real world applications). Indian government has not given a standard definition of 'Private Cryptocurrency'. The existing definition of Private Cryptocurrency is Crypto Coin on which Blockchain data can be masked. Something like Bitcoin or Ethereum do not fall into this category.

Right now there are more than 20,000 businesses that are accepting Bitcoin. People can buy a bunch of digital products using Bitcoin. If you move to certain countries, you can transact in fractional values of Bitcoin. So, there is no problem in terms of transacting in Bitcoin. In fact, you can’t go to Starbucks and pay in gold to buy a coffee. that is not possible.

This clearly puts bitcoin as a medium of exchange competing with fiat, as you said, gold can't do the transactions which bitcoin does. So isn't government rightly worried of losing their monopoly on currency. Bitcoin’s market cap is 1 Trillion +, Gold’s market cap is 10Trillion +, I’d kindly suggest you to go through the price volatility in Gold when it’s first ETF was announced. Cryptocurrency as a whole is still a small market cap compared to other markets. Even though I agree that Gold’s supply is finite on Earth, there are various researches that highlight that soon or even now (who knows) it will be possible to mine Gold from space. 

Cryptocurrency asset management

Bitcoin fixed supply is 21 Million and 21 million only. When you take into consideration the number of Internet users that is a billion plus if not more, the adoption chances are bigger in my personal opinion. Every new technology is first laughed at before it gets mainstream. to be uncovered by moving towards DeFi and Smart Contracts.Government blockchain can be created, but adoption of such network will be very difficult to scale up. Rather than looking at cryptocurrency as a legal tender, it should be looked upon as technology platforms and thereby deducing its value.In terms of replacement of gold I have a huge doubts over ot specially countries where the possession and wearing of gold is synonymous to prestige and cannot be replaced.

Bitcoin value is solely depend on what's next person is ready to pay ( and price can be hyped with artificial demand or influence plus why any government will be ready to give up its right to issue currency and create alternative. Block-Chain can survive without cryptocurrency too and nobody is stopping you to use blockchain.With unicorn startup exchanges and billions of dollars of public money involved, government will probably not put a blanket ban on cryptocurrency but can't be 100% sure.

by booble

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