Cryptocurrencies like Bitcoin are a revolutionary innovation. It is also considered the worst economic event in recent years. These are the two most widespread opinions about cryptocurrencies. Which humans have not yet agreed upon.
Anyone interested in technology can interact with the two teams on an ongoing basis. Perhaps one of the most important reasons why people disagree about Bitcoin is the extent of profit they have been able to make from it.
This is where thousands of people have succeeded in achieving huge fortunes by investing in or mining cryptocurrencies. While millions missed that opportunity.
Perhaps one of the other reasons is how people deal with the idea of cryptocurrencies. The most important question for them remains: Is it a real currency or an advanced technology?
Is Bitcoin a currency or a technology?
Audiences exposed to a digital currency like Bitcoin vary in how they view it. They fail to determine its existence. Especially those coming directly from traditional investing.
This confusion arose because humans do not use cryptocurrencies in their normal day. As no one uses it to buy coffee before going to work. Also, most Bitcoin owners do not pay taxes on their holdings.
Bitcoin, and other digital currencies, are suffering from severe and ongoing confusion. The value of Bitcoin at the beginning of 2021 was 30,000 US dollars. In May 2021, it reached $60,000.
These large numbers may attract any investor, regardless of his level of caution. But is this an investment in currencies? Or an investment in advanced technology, or a product, if we simplify the description?
Bitcoin can be placed within the framework of traditional currency. However, currencies usually retain their value for a long time. They usually do not rise again after falling or do so quickly.
But on the other hand, cryptocurrencies like Bitcoin offer great value when it comes to transferring money abroad. If you want to transfer an amount to a friend or family member through the bank, this may cost you up to $45 as a fixed fee for the transfer.
In the case of transferring in a currency other than the US dollar, the user may pay an additional amount to transfer the currency. In addition, the transfer may take one or two business days to arrive successfully.
As for Bitcoin, the transfer fees are less than three dollars, whatever the amount. The conversion is completed within minutes.
This is where cryptocurrencies play their role as a revolutionary technology. A huge bank with thousands of employees and branches needs two working days to transfer the amount, with exorbitant commissions. While cryptocurrency technology requires a few minutes and minimal transfer fees.
On the other hand, technologies such as decentralized finance have allowed users to obtain loans from each other within minutes. The value of this market has reached approximately 50 billion US dollars in a short period.
Cryptocurrencies, specifically Bitcoin, can be described as falling in the middle zone between being a modern technology with software foundations and being a traditional currency.
