Think about it. How many ways can banknotes be converted into other currencies or commodities? Since everyone deals in traditional currencies, you can always monetize your money without affecting the price of the currency itself. At the same time, despite the continued growth, very few people, traders or services are willing to accept bitcoin. In fact, most central banks and regulators try to make buying or selling Bitcoin more difficult, all of which leads to lower market capitalization and lower bitcoin liquidity compared to banknotes.

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To illustrate it, here's the example. Imagine a fat man jumping into a small pool. As it falls, it will create a big wave outside the basin, and wet everyone around it. A large amount of water will come out of the pool, and the water level changes. Now imagine the same fat guy jumping into vast expanses of water like a lake or a sea. There is so much water that his presence in this place is negligible, and no matter how many times he tries, it is almost impossible to change the water level.

In this analogy, the fat man represents an investor who has a lot of money, and Bitcoin is water. At this point, Bitcoin is still a small swimming pool and is still far from being a lake. When someone enters or leaves the market, it creates a huge ripple effect on the price. But once Bitcoin becomes a lake or ocean, the price will stabilize, and we won't be able to see anyone's impact on the market.

The Future of Bitcoin

Bitcoin has seen an increase in popularity in countries such as Venezuela and Zimbabwe where traditional money systems have failed. Some analysts say it's only a matter of time before other national financial systems begin to collapse. This is likely to be a greater opportunity for bitcoins and cryptocurrencies to gain collective confidence, build in transactions, and increase liquidity.

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All currencies and assets change their perceived value on a daily basis. Looking back at the history of money, it has become clear that all currencies, especially banknotes, tend to fall because of inflation. In the case of Bitcoin today, a price drop may occur due to the failure of its network, new regulatory laws, stability problems, better alternatives, or anything else that discourages people from using it. However, unlike traditional currencies, bitcoin is deflationary in nature, which means that its value must rise over time. Despite the obvious risks, it still has the best record compared to all other cryptocurrencies, which demonstrates that it is the most important financial innovation of our time.

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