Bitcoin offers the efficient mode of transferring your money on the internet as well as is controlled by the decentralized network with the transparent rules, and presenting the alternative to the central bank-controlled money. There is plenty of talk on how to BTC price and here we will explore what this crypto currency’s price may look like in an event it achieves more widespread adoption. Firstly, it is helpful to back up the step. Bitcoin or other digital currencies are touted as the alternatives for fiat money. However, what gives any kind of the currency value?
Why Does Currency Have Any Value?
Currency can be used if it’s the store of value, and, put differently, if this will be counted onto maintain the relative value with time or without depreciating. In a lot of societies throughout the history, commodities and precious metals were been used as the methods of payment as they were seen to have stable value.
Instead need individuals to carry over cumbersome quantities of the cocoa beans, gold and other types of the currency, but, societies turned to the minted currency as alternative. Still, reason lots of examples of the minted currency were used because they were the reliable stores of the value, and made from metals with the long shelf lives as well as no risk of any depreciation.
In modern age, the minted currencies take form of the paper money that doesn’t have the similar intrinsic value like coins made from the precious metals.