Money is not the be all, end all of trading. In fact, history shows that money always changes alongside technology. So it is only a matter of time before the world’s global store of value evolves with the times. Experts in crypto asset management in the UK predict that it is going to be Bitcoin.
What Makes Money Valuable?
There is no natural law that dictates people can only use fiat currency to trade. Yet money stayed the same for centuries; only getting minor updates from time to time. The reason behind this lies in money’s key characteristics:
- Durability
- Portability
- Scalability
The last feature is the most difficult to control because money’s utility corresponds with its scarcity. Currency used to be natural commodities, like salt and gold. The problem is that when the value of these goods rises, more people start obtaining them. This saturates the market and dilutes the money’s value.
Why Governments Can’t Just Print More Money
So what is stopping governments from simply printing money to solve their problems? The answer is simple: inflation.
Inflation happens, there is a lot of money in circulation, but there is not enough economic activity to balance it out.
There are cases when governments print more money as proven by their response to the COVID-19 crisis. But they usually only do it for quantitative easing.
Quantitative easing involves buying government and other securities from the market. Then, central banks use these gains to reduce interest rates and increase the supply of money. They do all of these to urge people to borrow from banks and boost the economy.
The Hidden Dangers of Modern Money
Quantitative easing is logical, but it also shows how much control governments have over money. Just consider the Modern Monetary Theory.
The theory points out that governments can repeatedly degrade sovereign currencies to finance urgent policies. Then, they can use taxes to manage the inflation fallout.
In short, governments have the power to print wealth out of existence. They can make as much money as they need to achieve their goals at the expense of the currency holders’ wealth.
This can make people doubt their currency. A prime example of this is Venezuela’s hyperinflation, which pushed Venezuelans to abandon their sovereign currency for alternatives like Bitcoin.
Why Bitcoin Is The Future
Money is ever changing, and all the signs are pointing to Bitcoin being its next phase. Experts on digital asset blockchain predict that it is only a matter of time before people will use Bitcoin to store wealth.
And it is not just because crypto is based on the Internet, which has become an integral part of living in the modern age. It is also because it has key features that solidify it as the currency of the future:
Decentralised System
No one has full control over the Bitcoin network because it is built on blockchain technology.
Instead of relying on a central authority, the system validates transactions through nodes. Each node adds to the network integrity without forcing other nodes to alter their code and comply with a collective bias.
In short, the Bitcoin network does not need a centralised authority to work. It also has no weak point that individuals or agencies can take advantage of.
Limited Supply
While it is easy to duplicate content online, the same does not apply to Bitcoins. There are no more than 21,000,000 Bitcoins in existence. And no amount of effort, energy, and crypto asset management in the UK can change that number.
Keep in mind that the value of a currency is proportional to how difficult it is to obtain.
Bitcoin’s finite supply amplifies its value in a landscape that is otherwise known for digital abundance. That means it can simulate money’s fundamental scarcity.
Transparent Transactions
When it comes to money matters, the government makes all the decisions. More often than not, people can only hope that their politicians always act in their best interests. Unfortunately, that is not always the case.
Bitcoin does not rely on trust. All records on its system are public, so people can verify transactions in real-time. This guarantees transparency and accountability on a level that fiat currencies cannot match.
Stay Ahead of the Competition By Adopting Crypto Today!
The earlier you start using Bitcoin and other cryptocurrencies for your finances, the better your position would be once it takes centerstage. Here at Key Coin Assets, we can set you up for success with our crypto asset management solutions.
If you are new to the crypto space, we know it can be intimidating. We will show you the ropes on how to navigate the crypto space—from the best ways to invest in crypto to how to deal with Bitcoin’s volatility like a pro.
We also offer other services like digital marketing for blockchain and brand ambassador services. So if you want to integrate Bitcoin into your business, we can certainly help you out.
Contact us now for a FREE consultation about investing in Bitcoin and other cryptocurrencies!