The Rise and Rise of Bitcoin – why digital currencies are challenging traditional banking systems

in #future2 years ago


Digital currencies, especially Bitcoin, are increasing in valuation (+. Speculations in the causes of the recent bull-run on Bitcoin should be examined closer. Here is my current quick review of possible explanations:

Reasons for bull-run:

  • Better wallets and exchanges and increased adoption in general population
  • Increased adoption across institutions, including tradition banks and early digital services like Paypal
  • Lacking trust in national currencies due to risk of high inflation
  • Completely messed up political stimulus debate in the U.S.
  • Completely messed up CVOID19-respons in the U.S.

Risks:

  • Same major correction as after the bull-run of 2017
  • Governmental regulations making the use of cryptocurrencies harder or impossible within legal framework
  • Security issues and possibility of rewriting protocols to expand supply.

Rewards:

  • Obvious reasons like the ease of international transfers
  • New real-word applications
  • Long term investment in the future of money.

Meanwhile national digital currencies are gearing up for a competition with other national digital currencies. See ambitions of export of the digital Yuang.



Posted from my blog with SteemPress : http://plausiblefutures.com/the-rise-and-rise-of-bitcoin-why-digital-currencies-are-challenging-traditional-banking-systems/