Bitcoin is said to be declining again amid more bad publicity, despite new measures in key economies like the UK to improve legislation for the cryptocurrency, and reports from March 22nd show the price has been trading sideways around $260 and 1600 CNY. This all comes as theories rise about the potential of digital currency against a fiat currency-based model and its future in the US, should the dollar continue into a collapse. Clearly some are hopeful while others are not.
Some still feel that digital is the way forward with the declining dollar.
A fiat-currency-based model is one that is a traditional, paperback currency regulated by a central bank, ergo the most standard of dollars, pounds and other currencies that we tend to associate with financial systems. In recent years we have, however, come to look upon alternative means of assets and currencies in our attempts to safeguard our futures, save wisely and look to the future of financial management. Bitcoin is a digital currency that has quickly transformed from the Western fad that people once assumed it may be to a global idea with users taking advantage of its different benefits is a fast-growing number of countries. There are still people that scoff at the idea of Bitcoin being a viable form of currency, perhaps because it is not fully recognised as a legitimate form and it has some legal issues that continue to make the headlines, but this non-physical form of currency is growing in popularity with users – if not in value – and there are now theories into its potential as a viable, stable form of currency, especially when it is compared to the US dollar.
The potential of bitcoin in a struggling economy has already been seen with nation such as Argentina, where bitcoin investments rose as the economy slowed down and some say that the beauty of Bitcoin as an alternative is that it will not have the same threats of inflation and it can be used so easily by individuals as well as institutions. Many critics may be enjoying the struggle of Bitcoin but its supporters remain incredibly optimistic.