One of the biggest use cases of Blockchain technology is Cryptocurrencies. This technology is not only an innovation in the way we store the data but it is also helpful in creating cryptocurrencies that can be used as an alternative to the regular FIAT currencies. The first ever cryptocurrency that was created with this technology was Bitcoin. Even though the use case for Bitcoin is very limited, it is still one of the best cryptocurrencies that was ever made and the demand is very high at the moment.
One of the biggest advantages that Bitcoin has over other cryptocurrencies is the fact that the supply is limited and there can be only 21 million Bitcoins in total. This is the beauty of this technology. It can be made decentralized and defined in such a way that the maximum supply can be set. Not just Bitcoin but many cryptocurrencies are with limited supply and that's what increases their value. In the last few years, the exposure has been excellent and many people have started investing their money in crypto. Not everyone buys Bitcoin but most of them do start with purchasing Bitcoin and gradually move to other cryptocurrencies.
Decentralized Money
It is true that decentralization is very helpful here where not a single party can print money. There is a law and order set in a decentralized manner for printing money. That's how it was defined that Bitcoin was supposed to be only 21 million in total. This decentralization is very important because not one person can make alterations to how the circulation of money can work in the crypto world.
By money, I'm referring to cryptocurrencies that can soon become the real money for transactions. This has been adopted by many countries already and when this happens, the need for FIAT money can go down. There is also a high possibility that FIAT can lose its value because if people don't use FIAT but instead use decentralized money to transact, there will be no need to print new money.
Another advantage that blockchain brings is that we can have control over how many cryptocurrencies are being printed which will also create a huge transparency where everyone who knows how to check will be able to see how much money is printed and what is the logic behind printing money. There are always ways to make sure the crypto that is printed also goes to the sink where it is burnt.
Many countries have adopted this technology and we are able to see news that in South Korea the government is using this technology for toll booth collection which is one of the finest areas where blockchain can be used. There are also other areas where this technology can be used which is for managing government registrations and documentation where things can be made public. Most information that can be made public can be kept inside the blockchain with some incentives in the form of cryptocurrencies.
Even though we have the facility now to create decentralized money, worldwide acceptance is one of the biggest challenges. Not all countries would welcome this move because it can potentially reduce the value of FIAT.
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