Bitcoin prices have been in a constant downward spiral. Just a year before, prices were estimated to reach a high of one million USD by bitcoin supporters. Bitcoin is a digital currency or cryptocurrency created by Satoshi Nakamoto. The price of Bitcoin has fallen almost 80% percent in the last year and now is thousands below the trading support level of $6,000. Bitcoin closer resembles gold more than the typical currency. It's value only comes from its desirability and potential future uses. It is not backed up by cash flows or the expectation of investors. Bitcoin, unlike gold, is not universally excepted as a store of value. Bitcoin is a digital commodity with no physical representation or value. Today's current miners of bitcoin are also a problem worth stating. By miners I don't mean the ones that work in mines with pickaxes and terrible working conditions, bitcoin mining is simple. Mining requires a head of operations and multiple computers. These computers are then set to do one specific task which is solving math problems. The harder the problems the more profit can be made. The original investors, buyers, and miners of the currency truly believed that the future of currency would be digitized, but most investors today are fueled by extensive greed. As the value decreases so does the morale of miners. Once the value drops below the cost of mining, many people will be forced to abandon the operation. The future is not looking good for digital currencies.
What do you think the future of currency could be?
I feel like the U.S dollar could be dominant currency for years to come. The dollar has steadily increased in value as of 2014.
Does crytocurrency seem viable?
I think not. It is not backed up by a physical thing like paper currencies.
Replies
Bitcoin is basically just a digital alternative for typical paper or coin currencies. It has a far greater security level as well. You can up the security to where it can be made untraceable to others.
1. Gold will always be the standard for currency. The dollar's value has been decreasing since the early 20th century.
2. No, money without anything that has a standard for value will not be a good currency anytime soon.
I can't really say what the future of currency will be, but I'm pretty sure it isn't going to be digital currency. I just think the U.S. should stick with the dollar bill. I don't know a lot about cryptocurrency, so I'm not really sure if it is viable, but I don't think so. Physical currency just seems to work right now. I know that criminals like to use bitcoin because it can't be traced, though.
I think the future current should be the US dollar in the United States. It has been improving throughout the years. More then likely it will be better then ever once it happens or if it even happens. It is not backed by anything, so we don't know if it will work out or not. Crypotcurrency is a new one, but just like the US dollar it has nothing to help it.
I think that at least in the U.S. the future currency should be the U.S. dollar, as you pointed out, it's value has been improving since 2014. I think that cyrptocurrency will be prominent, but not replace any current currencies.
Seeing cryptocurrency rebound back in value in 2019 would be a sight to see but seeing the loss in value could scare of possible investors. Cryptocurrency at the moment is too much of a wildcard to rely on.
I think the U.S. dollar will be here for many years, because it has rarely ever gone down in value, even though it is not backed by anything. Cryptocurrency is not viable because it is a new currency and has nothing of value to back it up.
I think the future is in the US dollar, and I don't think Bitcoin will last very much longer. I don't think it is and this is because its not backed by anything and really isn't worth anything unless people us it.
I think the clasic paper money will stay for a long time but at one point they will probably change it to some kind of digital currency
I think it possibly could be possible but it would have many flaws, like hackers could get to it and there no way to really physically keep it safe
In general, the American dollar is worth less in general compared to when America was first created, so the value increase doesn't matter much in my opinion. I don't think that any one currency will become dominant. Certain amounts of all of them are worth the same thing.
Whether or not a currency has a physical copy doesn't really seem to matter in my opinion. Money is more of what value is placed on things and scarcity. It doesn't seem like it'd be a problem to recieve digital currency instead of physical if an economical system in a country is based off of it. It'd be like using credit cards that don't have interest for everything. However, anything digital can be hacked.
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