Would Bitcoin eventually overtake traditional fiat currencies?

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Bitcoin is a cryptocurrency that operates according to the ideas outlined in a white paper by Satoshi Nakamoto. According to Investopedia, this digital or virtual currency uses peer-to-peer technology to facilitate instant payments. Bitcoin is like an online version of cash that can be used to buy products and services.

Paper money refers to the country’s official paper currency, which is used for transactions related to the purchase of goods and services.
The printing of paper money is usually controlled by the country’s central bank to keep the money flowing in line with the country’s monetary policy.

Paper money, also called banknotes, is a form of negotiable bills of exchange created by a bank or other licensed body and payable to the bearer upon request. Paper money has existed for a long time, bills date back to 118 BC in China during the Han dynasty.

The banknote has its limitations, such as being withdrawn from circulation due to everyday wear and tear associated with its handling. Contaminated banknotes can also be declared unusable and withdrawn from circulation to prevent the spread of disease. An instance is during the COVID 19 pandemic.

Paper Money Can Be Divided Into Four Categories: representative, convertible, and non-convertible paper money, fiat money.

The most commonly used paper money is fiat, which has no intrinsic value, and the value is determined by supply and demand. By government decree, fiat money is declared legal tender, which means government support. Its value is what distinguishes one country’s currency from another.

Bitcoin and Paper Money
With this in mind, cryptocurrency refers to a digital asset created to function as a medium of exchange, in which individual records of coin ownership are stored on the blockchain. Bitcoin is run by a decentralized body, unlike government fiat currencies. There is no physical Bitcoin and it’s not issued or supported by any banks or governments. It can also be accepted as a means of payment for products or services sold, most stores will always display ‘’Bitcoin Accepted Here” to indicate that it can be used for transactions.

However, There Are Limitations: first, few clients, mostly old ones, do not understand the Internet and may still depend solely on paper money. Secondly, the concept of virtual currency is still relatively new compared to paper money, Bitcoin dates back to 2009. Third, it is the difficulty of the transition, the decrease in government control, since virtual currencies will operate with much less government control. Then, ultimately, if virtual currency replaces paper money, it could lead to devaluation of the note and a new structure must come into play for each country to adjust.

However, most tech-savvy people state that digital currency is the future. Notably, one of the main reasons for the growth and popularity of Bitcoin is that it can act as an alternative to paper and safe gold. The question is, will Bitcoin overthrow paper money?

Can Bitcoin Overthrow Paper Money?
While the concept of virtual currency is still relatively new compared to paper money, most believe that digital currency is the future. The advantage of using Bitcoin over paper money is that Bitcoin cannot be easily manipulated like paper money due to its decentralized nature. Many Bitcoin proponents tout its safe-haven nature, implying that it can be used as a hedge against inflation.

Besides, it is believed that the use of a digital currency such as Bitcoin may better promote the concept of a universal basic income than fiat money.

Also virtual currencies help eliminate third party interference in day-to-day transactions. This can help lower costs for business owners as well as consumers. The question of whether Bitcoin can replace cash can be answered well in Patricia’s breakout. Patricia, a globally innovative Nigerian technology company, harnesses the power of blockchain and cryptocurrency to meet everyday challenges.

Patricia is the industry leader in the gift card and Bitcoin exchange. It lets you safely buy or sell gift cards and Bitcoin of any value, store them in your Bitcoin or local currency wallet, and seamlessly switch between them for day to day transactions like airtime, data, and cable subscriptions.

For simplicity, a gift card also called a gift voucher, or gift token is a stored value prepaid money card typically issued by a retailer or bank for use as an alternative to cash for purchases at a particular store. Gift cards are a form of prepaid debit cards that are loaded with funds for future use.