Why bitcoin is considered as a means of accumulation

Judy Rubio

Among the means of accumulation, one of the most accessible to a wide range of people is Bitcoin. In addition, the # 1 cryptocurrency has all the possibilities to help people pay off their debts. This is the opinion of Misir Makhmudov, who is an expert at Adaptive Capital.

Bitcoin opportunities and prospects

The analyst emphasized that before the advent of cryptographic currencies, real savings funds, including securities, real estate, and the like, were the prerogative of exclusively wealthy individuals. Bitcoin provides the ability to save savings without any regulatory and financial obstacles that may be associated with it.

Mr. Makhmudov noted: "Today, users can save Satoshi and save their own funds in the most scarce asset. If millions of people use this savings tool, it will allow them to get out of the debt hole."

The leading cryptographic currency is often called "digital gold", and it is also compared to the king of precious metals – gold.

Steve Wozniak believes that only bitcoin can be regarded as digital gold

Steve Wozniak supported the statement of the head of Square and Twitter Jack Dorsey. He has no doubt that bitcoin has all the chances to become a single global digital currency. The Apple founder made this statement during the Money 20/20 conference held in Amsterdam.

Of the Lord, Wozniak said, "I fully support Jack Dorsey. This does not mean that I am 100% sure that this will happen, but I want it to happen, such thinking is very pure." Before that, Jack Dorsey shared his opinion that bitcoin will grow into the native currency of the Internet.

Steve Wozniak spoke positively about the limited release of the main digital currency. The businessman emphasized that he does not act as an investor and supports bitcoin from the position of technology. The opinion leader commented on the advantages of Bitcoin with other coins, "Only bitcoin can be regarded as pure digital gold, I have no doubt about it. Altcoins usually refuse certain features of bitcoin. This may be a lack of control on the part of an organization or decentralization."

Before that, Mr. Wozniak noted that blockchain can be used in a variety of areas. For the realization of all its capabilities, the technology of distributed registry and crypto currencies will require decades. In the article "What is bitcoin" you can read in detail about this digital coin.

The head of the Federal Reserve System called bitcoin a speculative tool of accumulation, he compared the cryptocurrency with gold

Jerome Powell, who heads the us Federal State Reserve, noted the possibility of eliminating the need for reserve currencies (the main one for today is the us dollar) by using the global cryptocurrency. He made this statement during a hearing before the Senate Banking Committee.

Mr. Powell emphasized, "This possibility exists, but now there is no mass acceptance. Bitcoin is a Prime example. Today, few people use it as a means of payment, the coin is most often used as a speculative means of accumulation."

The head of the Federal Reserve System said that scenarios involving the abandonment of reserve currencies have been announced since the advent of digital money. Theoretically, the global financial system can change completely, and this applies to the Federal Reserve System as well. In the United States, different currencies could be used simultaneously. However, this would be a return to earlier stages of human development.

Many believe that this statement was primarily intended to draw attention to the lack of global use of cryptographic currencies as a means of payment. The Chairman of the us Central Bank has shown that abandoning reserve currencies is almost impossible.

What will help Bitcoin become a means of accumulation

If Bitcoin or other digital currency has received the status of a means of accumulation, they should become as predictable as possible in the long term. Achieving this goal requires limited release, resistance to censorship, self-sufficiency, and security.

Unitary platforms, including EOS and Ethereum, have practical value: they experiment with network management models, flexible programming, and advanced consensus algorithms. In their environment, advanced and flexible projects can win. However, parameters such as innovation and flexibility run counter to the principles of security and predictability that are important for savings.

Cryptographic currencies as a means of accumulation

Digital gold differs from utilitarian cryptocurrencies, it has relatively little flexibility and utility. The speed of development of the asset is slow, but it is self-sufficient, resists censorship and is safe. Users often choose bitcoin to store wealth – it is secure, familiar, and relatively predictable. This choice is more determined by the emotional component, rather than the logical one – the value of an asset often depends on the belief in it of other people.

If desired, participants can issue their own version of digital gold, which would have a high utility. Some people need its new functionality, but many users will keep their wealth in digital gold not because of its flexibility and usefulness, but because of its stability, security, and independence. Additional peace of mind is achieved by storing in an anti-fragile asset. In this situation, slow innovation is an attractive feature. For a storage facility, it is important that wealth cannot change overnight.

As you can see, Bitcoin has all the possibilities to become a recognized means of accumulation. Even the head of the Federal Reserve System noted that the main cryptocurrency is far from the world's means of payment, but it has prospects of becoming an independent tool for saving funds. If you want to accumulate a considerable amount, pay attention to bitcoin. The limited issue of cryptocurrency has all chances to maintain its value and even increase in the near future.