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Bitcoin has shifted from its original vision as a currency to being primarily seen as a high-value investment asset. Institutional interest and ETF approvals have driven positive sentiment, but Bitcoin’s adoption as everyday currency remains limited. Bitcoin has changed dramatically since its conception, from a digital currency with the potential to revolutionize financial transactions to an asset largely used as a store of value and investment. Deputy Governor of the Central Bank of Tiongkok, Lu Lei, underlined in his 2021 book for this change. He honored two powerful personalities in monetary economics: Satoshi Nakamoto, the mysterious creator of Bitcoin, and Robert Mundell, who aimed for the utopia of dollarization but could not see it realized. Though lucrative, Lu Lei noted, Bitcoin has veered far from its intended usage as daily money. Lu Lei said: “Bitcoins have become an extremely expensive digital asset, moving further away from widely distributed money.” From Currency Revolution to Investment Focus: Bitcoin Changing Role  The path of Bitcoin has been defined by notable shifts in opinion and application. Originally heralded as a novel approach for distributed, borderless transactions, it has now come to be known more as “digital gold.” The causes of this change are several. With customers typically choosing more consistent options, volatility in Bitcoin’s price makes it unworkable for daily transactions. Though some companies take Bitcoin as payment, this movement lacks the momentum to become a global currency. “Bitcoin’s price fluctuations make it unreliable for daily use, so keeping it confined as an investment asset,” said a financial analyst. Notwithstanding its promise, obstacles, including high transaction fees and long processing times, have hindered Bitcoin’s acceptance as a currency. Regulatory considerations also matter, and governments all around see Bitcoin with mistrust because of worries about financial stability and security. Bitcoin’s original promise as a widely…

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Filed under: News - @ November 3, 2024 8:05 am