Bitcoin is a virtual currency that does not rely on a central accounting authority, but is rather a completely open source, a pair-to-peer network for money, something unmarked in the History of the human economy. But are the people, their representatives and their businesses ready for this new form of currency?
Bitcoin can take off in some places and countries earlier than expected according to the political climate. If a government destroys and debars its currency, it is then obliged to grow in popularity. This happened in Argentina when the government converts local currency bonds into bonds denominated in US dollars at a government exchange rate. The use of Bitcoin in the country shot the roof by following this, and it always accelerates (measured in terms of portfolio downloads per month).
Cyprus was another good example – When the government tried to seize people’s money, Bitcoin took off in the country because it is much more fluid on a global scale and can be sent instantly to another person anywhere in the world without the need for government intervention. . It also means that, realistically, the government can not control the supply and demand for Bitcoins within its borders.
Of course, poor governance is only one side of the equation. The economy dictates the other. Bitcoin takes off in places that thrive on entrepreneurship and where policies are favorable. Business owners will find Bitcoin’s use to be incredibly more effective than the existing payment system that the world is based on credit cards because merchants have to pay credit card companies from 2 to 4%. If all transactions were purely in Bitcoin, without any conversion to FIAT, the transaction fee for the company are zero. Literally zero. You can send and receive money for free via the Bitcoin network. That’s what makes the economy using Bitcoin so powerful.
Some of the cities that are coming in this innovation include familiar names such as San Fransisco and New York, but also less-known entrepreneurial cities like Berlin, which has a large flourishing market for Bitcoins.
When people in a city or country see Bitcoin as a value store and see it simultaneously as a payment system that facilitates the current burden of merchants, Bitcoin has the potential to take off. It happened in the past and this will probably happen in the future. Of course, you still need the entrepreneurial spirit and risk taking a period of existing decade, but the good news is that it occurs simultaneously around the world.