What would the world look like if Bitcoin became widely accepted?

Author: Velvet Gold Mine

Image source: Dazhi

This is more of a question we ask ourselves sometimes when dealing with personal or other small-scale events. As a civilization, we may not sit down and think through the full consequences we will encounter if Bitcoin is widely accepted worldwide, and all other forms of finance become obsolete and fall by the wayside.

On the one hand, banks as we know them are becoming a thing of the past, and we will say goodbye to them forever. For physical banks, such as Wells Fargo, Bank of America, Chase and all other financial giants, we are more likely to copy their current working methods because we still trust them very much. Moreover, there are some people who privately support Bitcoin and related currencies, and they use Bitcoin in some special privacy areas. For these people, they don’t feel reluctant to show themselves to the world. After all, they are not necessarily doing anything wrong, and they are not engaged in things that their friends and neighbors have not heard of, so it is obvious that they will create a whole new community.

Essentially, the best outcome is that once Bitcoin is globalized and legalized, we will likely be a little more financially free. We may also become more fiscally sound, since even though the value of Bitcoin has dropped from time to time, today one Bitcoin is still worth over $200 in the United States alone. In general, the way we spend and manage our money may become easier. If the whole world uses the same currency, international overseas business may be much easier than it is now.

But are there some pitfalls? Of course there are. It’s not all green grass and sweet lollipops. There are two sides to every coin. One big problem is that, despite the security provided by the Bitcoin repository, the security flaws have been exposed more seriously, as the collapse of the Japanese Bitcoin exchange Mt. Gox has exposed, Bitcoin is more vulnerable to hacks and security breaches than in the past, Bitstamp was attacked earlier this year, and other similar incidents are not uncommon. Of course, security and digital strength may gradually increase over time to prevent criminal incidents, but when and how this will be achieved is still difficult to say.

Furthermore, as cryptocurrencies become more popular, we are also seeing the rise of BitLicense and other copycat forms of regulation in the US and elsewhere. As restrictions on Bitcoin grow, some businesses are starting to pack their bags and leave, like New York, home of Benjamin Lawsky’s horrific document. The globalization and legalization of Bitcoin will make it a global currency, not just a national one. And we will also see the rise of various regulatory bodies around the world to try to ensure that every country is doing the same thing to prevent problems with Bitcoin. There will be more restrictions on how we can use Bitcoin, and businesses will be forced to play by the rules. After all, Bitcoin is no longer “new”, “different” or “unique”, it will be classified as “regular” money. This behavior may even make people miss the money they used to use before, whether it is the euro, yen or other. And many people may find themselves trying to use Bitcoin in the same way as they used to use traditional money.