The value of
money heavily depends on the belief people invest in the currency. If they
believe in its strength, it would gain value, and the more people outside the
country believe in its strength, the more it gains value. To believe in the
currency is to believe in the country’s economic capabilities; with better
investments and high valuation of properties in an objective manner, currencies
also increase.
However, as the
world transitions into developing cyberspace and the internet is now culturally
a part of our lives, money’s value can be transformed.
Imagine a
world where your money could be accessed anytime in your own individual account
using a smartphone or a specialised device. This is what Bitcoin had achieved.
As the entire world continued to believe in the value of Bitcoin, the more it
gained value.
Bitcoin’s
decentralised nature made it volatile, but amiable as “miners” could just plow
away at digital minefields, with coins progressively increasing in difficulty
to obtain. Its value holds great amounts of dollars or pounds and is universal,
because it is based in the internet.
As it gains
worldwide recognition, many turned to Bitcoin because of its anonymous
transaction capabilities. Given such, it helps avoid traces by officials and
the government, whose banks are also under its regulation. Many see it as a
throwback to the early years of dukes and duchesses, who had kept their gold in
vaults, never decreasing in value. As gold was separated from numerous
associations with currencies, the power of gold died, but still remained high.
It is
possible that bitcoin and other forms of digital currencies will reignite the
system of keeping gold and increasing its objective value not because of
objective investments, but because of society deeming it as precious.
