20 Apr '15, 10am

#cryptocurrency

#cryptocurrency

Social media Share this article       While bitcoin has been dubbed as the worst investment for last year, many enthusiasts still believe that the cryptocurrency can surpass fiat currencies as the main mode of payment around the world. Its scarcity and the use of the blockchain are its defining features but it could also be it source of weakness. Can bitcoin really replace the U.S. dollar or other currencies at some point? Fiat currencies draw their value from being backed by assets or by central banks. In contrast, bitcoin draws its value from scarcity in that there are only a limited number available in circulation or from mining operations. Bitcoin is not dependent on any change in value of underlying assets, such as gold or silver, but is backed by the basic market principles of supply and demand. Bitcoin vs. Fiat In addition, there is no monetary authority that ...

Full article: http://www.newsbtc.com/2015/04/20/can-bitcoin-really-repl...

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