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Will Bitcoin Replace the Dollar?

Will Bitcoin Replace the Dollar?
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The recent twitter interaction between Cardi B and Twitter's former CEO has gained the attention of many people, and soon after that tweet, it has become the news headline that Bitcoin will soon replace the Dollar.

The conversation started with a simple tweet by Grammy award-winning rapper that says, "Do you think crypto is going to replace the dollar?”. To which Jack Dorsey, the former Twitter CEO, replied, "Yes, Bitcoin will". It's not even a day after that tweet, and it has already gained a lot of attention from all the famous personalities and the news media.

Can Bitcoin really replace the fiat in future?

Anything that can be used in the exchange of goods and services can be termed as money in technical terms. In the current scenario, it is not practically possible to use Bitcoin for our day to day transactions. No doubt, many companies are adopting it as a payment method. But, can we really buy the desired goods using Bitcoin? Probably not.

As of now, cryptos are not being used as a valid mode of exchange; instead, these are just traded. According to the studies, people hold Bitcoins because their IP addresses haven't been changed for many years. 

Now, the question comes here is that will that be possible anytime in future to buy products using cryptocurrencies? 

The fiat currencies are stable and have attached a value to every product. But, one point to be noted is that fiat currencies are regulated by governmental bodies. Indeed that fiat also losses its value over time, but these are centralized. Now, centralization is often criticized because it gives the power to the government over people's money.

In the search for decentralization, Bitcoin arrived. But, Bitcoin could not be called a currency yet because different governments are still not considering it as a mode of payment. It is pretty evident that the government of any country has complete control over its currency, and that's how they decide the amount of currency to be printed.

Talking about Bitcoin, there are only 21 million supply of BTC, and the supply cannot be increased even if required. The hard cap of BTC is indeed a matter of concern if it has to replace the Dollar. Also, cryptos are highly vulnerable. The market even crashes by a single tweet by some famous personality. It simply means that there have to be some cryptos regulations to replace fiat currency.

On the contrary, cryptocurrencies are an excellent investment method. Investors can grow their money quickly by investing correctly in Bitcoin or other cryptocurrencies. In fact, Bitcoin’s limited supply makes it better than the Dollar because it cannot be diluted. Hence, it's a great investment option.

Closing thoughts

Keeping in view the difficulty, it doesn’t seem practical for Bitcoin to replace the Dollar. Cryptocurrencies are the future, and no one can doubt that. But, the fact that cryptos can completely replace fiat currency is hard to accept and might not be absolutely possible. Undoubtedly, with digitalization, people might not use much paper currency in the future. But, it doesn't mean that only cryptos will be used for all the day-to-day expenditures.