Thinking about cryptocurrency

in cryptocurrency •  4 years ago 

Is it possible for Bitcoin and other cryptocurrencies to become a world currency in the future? We can say a nonsense that is always correct: everything is possible. If you don't talk nonsense, first of all we have to discuss what makes the US dollar the world currency? Simply put, the U.S. dollar can become the world's currency because the U.S. is backing it. Everyone believes in the U.S. The U.S. dollar naturally has credibility and liquidity. We can use US dollars to spend directly in other countries, but what if we use Cambodian currency to spend in other countries? Therefore, the condition of becoming a world currency is credibility, and everyone trusts this currency. How about the credibility of Bitcoin and other cryptocurrencies? From its conception, Bitcoin is a completely decentralized, user-to-user electronic encrypted currency that does not require the participation of an authority/third party. We can consider the credibility of Bitcoin and other cryptocurrencies from the perspective of encryption and reliability at the technical level.
Is the currency's "decentralization" and "anonymity" necessarily an advantage? I personally believe that I believe in centralized currencies that are guaranteed by a third-party authority more than decentralized encrypted anonymous currencies. The decentralization and anonymity of cryptocurrency, on the other hand, also means that if the currency is stolen, it cannot be held responsible. For example, if your credit card is stolen, you can apply for a refund from the bank, but if the cryptocurrency is stolen, you can only accept it. (Maybe buy a cryptocurrency insurance? New industry?) Some people will say, trust the currency issued by the country, what if the country falls? Bitcoin and cryptocurrencies can be used as a means to avoid this risk. But I personally think that unless it is a period of war, the probability of this kind of risk occurring is still relatively small. If it were really in war, Bitcoin's central server might have been bombed long ago. To put it simply, I still believe in authoritative third parties more than the already fragile network.

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