We define money as something in exchange for getting any commodity or service. We can consider the commodity or services we can purchase; you need the money like daily use items, real estate, and many more. Nowadays, many people confuse bitcoins with money. They ignore that bitcoin itself is a commodity, and we are purchasing it. An essential factor and attention to be paid to the fact that bitcoin does not exist physically, and therefore, it cannot be considered a commodity. There are a lot of controversies revolving all over the world about cryptocurrencies. We cannot be sure about the future of digital tokens unless and until we have explicit knowledge about them. We will read some necessary details about cryptocurrencies to have a clear understanding of them to decide if they are going to be the future of money. BTC v/s cash Paying for anything using bitcoins is pretty straightforward, like paying with cash for any commodity or service that you purchase in your daily life. However, if we pay attention to the basic model of both these things, they are entirely different. When you are paying using the cryptocurrencies like bitcoin, you take a piece of your bitcoin and give it to someone else in exchange for a service. Therefore, you cannot assure if the other person is willing to accept it or not. On the contrary, cash is something that the government regulates. It is a commodity for which the government will be willing to provide its value. Therefore, cash is certainly completely different from the bitcoins that we are using in daily life today. What if we forget our wallet password? A fundamental matter of concern arises when we forget the password of our cryptocurrency wallet. Well, it is essential to be brought under consideration because this is mostly happening these days. Even if people are less prone to damages through the Internet hacks for their cryptocurrencies, they forget the password of their wallets. Also, to ensure safety, they refrain from telling their passwords to anyone else, and once they forget it, the cryptocurrencies are lost forever. Yes, the same can happen to you. Therefore, we can say that we ultimately do not hold our cryptocurrencies. They exist in a digital place, and therefore, we cannot be sure if we have them. Comparison to the regular financial system When we think of making bitcoin the future of money, the first thing that should come into our mind is its comparison to the regular financial system. If there was no government involvement in the financial system, it could have been like cryptocurrencies. There would be no regulatory body so that the prices may fluctuate. Also, the government will not be liable to pay the bearer the exact value of the money they are holding. However, cryptocurrencies are different. The financial system which runs through the cryptocurrencies is not assured and does not guarantee you the hold of value. If someday, everyone refrains from believing that bitcoin will be the future of money, it will eventually lose its value in the market. Cryptocurrency enthusiasts are not going to be very happy on that day. No one will be willing to take your cryptocurrencies in exchange for anything, and therefore, you cannot certainly compare them to the regular financial system.
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