When Cryptocurrency was first launched in the year 2009, nobody knew what it was. As time passed by, people started knowing about it but none of us could predict how fast it can grow. But if you look at the number of people trading or buying cryptocurrency, then it has crossed 200 billion at present. It always keeps growing as a lot of people keep buying cryptocurrency. As people keep adding to the list of Cryptocurrency users, one important question always pops up. Is cryptocurrency the only future money? If it has to be made more simple, will you be able to buy your daily needs with the help of cryptocurrency just like you do with your traditional money?
If you want to understand whether cryptocurrency is going to be the future or not, then you need to compare it with traditional money. Here are some common factors that can help us compare cryptocurrency with normal currency. And if you are interested in trading in Bitcoin, use an auto-trading bot apps for Bitcoin.
Mode of exchange:
When you are buying a product or a service, it has a price. You will have to pay the price in your normal currency and there are different modes of exchange. There is a denominator for the traditional currency we use every day. And the best part is it can be exchanged anywhere and at anytime. But when it comes to cryptocurrency, it is not accepted by every merchant or service provider. Only a few companies like Tesla started accepting Bitcoin as a mode of payment for vehicles. So, it is still a question where it can be used as a normal mode of exchange for products and services.
The value or store of value is the actual value of the currency. If you have a currency note today, you will be able to exchange the currency note even after several years for any product of that value. The value of the currency note does not increase or decrease with time. But that is not the same with cryptocurrency. The value of cryptocurrency will keep fluctuating every single minute. The price of the coins will increase or decrease at any time. It can never be predicted. You may be able to make profits with the same investment or lose your investment. But many experts predict that the value of cryptocurrency will increase in a long run. So, if you save cryptocurrency for a very long period, then the value of your currency will increase.
If you are buying a mobile phone for a specific price with your traditional currency, the value of your currency does not change. But if you are buying the same product with cryptocurrency, then the value can change. For example, if you are spending five Bitcoins, and the price of Bitcoin increases, then you will lose a lot of money. The difference in the value of Bitcoin when the bought the mobile phone and the current price will be your loss. It is applied to the opposite of it as well. The price can go low and you will benefit from the purchase. So, in simple words, the price of cryptocurrency is volatile and so using it as a currency can be a bit risky. But with more and more people investing in cryptocurrency, the price will soon become stable.
There have been and are still a lot of controversies that are surrounded Cryptocurrency. Despite that, it is still getting very popular. Also, there are a few platforms where cryptocurrency is being accepted as a valid mode of payment. So, finally, to decide whether crypto is the future currency, you need to understand that it is an evolving subject. The form of currency that we are using has been changing from time to time, Now, we have currency notes, but earlier there were only coins. In the future, we may not even have paper currency, and we will start using only digital currency, which means cryptocurrency. The day when you can buy your daily needs with the help of Bitcoin, Ethereum, or other cryptocurrencies is not too far. Soon, we will have digital wallets and digital currencies ruling the future of the finance world. We just need to wait and let time decide it.