When it comes to using Bitcoin, many people see it as taking a “leap of faith”. Everyday consumers are now blindly putting their faith and trust in banks and financial institutions, even though these entities have already proven – multiple times – they can not be trusted. But who is trusting Bitcoin more than fiat currency, which is still backed by “something” or “someone” tangible?
Bitcoin Is More Than Money
One of the major misconceptions people have about Bitcoin is that it is “magic internet money”. In fact, more and more people see Bitcoin as “free money” since additional coins are still being generated as we speak. And while that is true to a certain extent, there is no such thing as “generating free money” unless you’re a central bank.
“Creating” additional Bitcoin involves solving mathematical equations using very powerful computer hardware. Said hardware is not cheap and requires a ton of electricity to keep running at full capacity at all times. So before people go out spewing half-truths and lies about Bitcoin being “free money”, please do some research.
On top of that, the monetary aspect of Bitcoin is just one fact of what this disruptive digital currency truly brings to our everyday lives. There is also a huge ideology behind this concept, which wants to restore financial control to the hands of the consumer, rather than governments, banks and other entities who squander your money and need bailouts more often than not.
Last but not least, most of the attention is focusing on the blockchain technology, which powers the entire Bitcoin ecosystem. Not only is the blockchain an open ledger for the entire monetary aspect of Bitcoin, but it also gives us detailed statistics regarding usage, new wallets being created, and so forth. But the true potential of the blockchain has yet to be uncovered – we have only just started to scratch the surface of its technological power.
Blockchain Technology Shifts Trust Paradigm
Decentralization is happening all around us. Look at the way we started consuming music – internet radio, streaming – or movies – streaming, digital downloads – compared to just a few years ago. Truth be told, most people think of this change as something “only the kids do”, but statistics tell us quite a different story.
In fact, young adults under the age of 18 are one of the smallest demographics in terms of Bitcoin and blockchain interests. The majority of Bitcoin and blockchain supports are aged between 18 and 55, which is quite interesting. Both the new and previous generations are starting to see the potential of blockchain technology in their daily lives, and are becoming more comfortable using it.
One of the recent signs of the “older” generation embracing Bitcoin and blockchain technology came in the form of a Series C funding round for Bitcoin wallet provide and exchange platform Coinbase. One of the more notable investors in that round of funding is none other than the New York Stock Exchange (NYSE). According to NYSE Chairman Jeffrey Sprecher, Bitcoin and blockchain technology have been on their radar for over a year, but the “language and lingo was difficult to navigate”.
“We’re seeing millions trust a currency that is created in the ether, more than they trust fiat currency by the government. I think that trend, whether it’s a restaurant review or a taxicab or the way you exchange value, is something they believe in and we want to be on top of it because I think it’s going to impact you and I.”
Source: CNBC’s Power Lunch
Images courtesy of CNBC, Shutterstock