Why Bitcoin Isn't Just For Criminals

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Bitcoin is in the same place that the internet was in back in the early 90s. It is not easy to use, and it is not quite ready for a large scale adoption. Moreover, it is regarded as something that criminals and terrorists use to either make money or fund their endeavors.

It has become a mirror image of what the internet looked like 25 to 30 years ago. People labeled the internet in the same way they label Bitcoin, saying that it is something only bad people use to do more bad things.

However, look at where we are now. How far we have come and how many amazing things we have gotten out of the internet. We have gotten smartphones that enhance communication, we have gotten unlimited access to the library of human knowledge, and it is even at our fingertips.

We don't even have to leave our house to run errands if we don't want to. Meals, groceries, and household supplies can all be sent to us, and we don't need to lift a finger. This gives us time to be more productive and focus on what is essential as well as just recharge our batteries after a long day. It is all truly amazing stuff that has really become a net positive for society, and it is going to continue to get better and better with Bitcoin and blockchain.

It is more likely than not that Bitcoin will follow in the footsteps of the internet. First, it will start out small and poorly understood with a lousy image, and then it will grow and mature and change the way we do business and view the world.

Right now, we are in the small and poorly understood phase. To most people as in the general public, Bitcoin is a buzzword, and that's about it. They don't understand its applicability, and they also don't understand its power to change and better things that we do in our daily lives.

Bitcoin Is Good For Society

If you have ever taken a macroeconomics class, you will know that there is the Austrian school of thought and the Keynesian school of thought. The Austrian theory of macroeconomics is that we cannot spend more and more and that alone will keep the economy running. ""The twentieth 'century's binge on conspicuous consumption cannot be understood separately from the destruction of sound money and the outbreak of Keynesian high-time-preference thinking, in vilifying savings and deifying consumption as the key to economic prosperity""- Saifedean Ammous, The Bitcoin Standard

This is kind of excessive spending falls into the Keynesian school of thought. However, Bitcoin is by nature, a currency that falls in line with the Austrian school of thought. At its core, as Saifedean Ammous calls it, it is sound money. The reason for this is because there is only so much of it out there and central banks can't just make more when they want to.

According to author Jimmy Song, this a good thing ""Sound money allows for savings and savings allows for capital accumulation. When sufficient capital has been accumulated, that can be utilized to create larger-scale projects to make production more efficient. The example in the book is that of a fisherman using bare hands vs. using savings to buy a fishing rod and nets. The latter is more efficient and allows for more production."" - Jimmy Song, Programming Bitcoin

This is part of why Bitcoin or at the very least, the tech that it is built on could change a lot about our world for the better.

Currently, there are about 7.53 billion people on this planet, and only 1-2 billion of them have access to banking. ""For the 'other 6 billion' who don't enjoy international, control-free banking as we do, bitcoin represents an opportunity to become part of a global economy which up till now did not exist. For those users, bitcoin is more than just a curiosity, it might be a doorway to connect to the world."" - Andreas M. Antonopoulos, The Internet of Money

The fact of the matter is that reliable and quality financial services, free of fraud and manipulation are actually quite a rarity. Bitcoin changes this. It allows anyone with a device that has internet access to have banking. Perhaps it 'isn't sophisticated banking like lines of credit and savings accounts that earn interest but at the very least it is something.

These people who 'don't have access to banking are currently restricted to cash and barter systems only. This makes it hard to do business when you can only do so in person. It also makes it very hard to grow a business, and as a result, the local economy is not as prosperous as it could be and as a result of that, the national economy 'isn't what it could be either. This stifles growth and ultimately hurts emerging markets

Conclusion

It is exciting to see that something not physical and with such humble beggings could really change the world for the better. Much like how the internet has. It may still be poorly understood and come with the notion that it is something used by criminals, but that doesn't have to stop it. Remember, the internet faced the same scrutiny and look at what it has become today.

but in the world of tomorrow, it will more likely than not gain, traction and become an integral part of both our daily life and as well as enterprise and government.