"What if Bitcoin was never destined to be the universal currency of the world? Would it not then go down in history as one of the best innovations in the financial sector?"
Ninety percent of people will say no.
But it's precisely for that reason that they don't understand what Bitcoin is becoming.
The internet has been preoccupied with one discussion for many years now:
"Will Bitcoin replace the US Dollar?"
But after watching governments, institutions, banks, and ordinary investors over the last decade, I think we're asking the wrong question.
The Internet Loves Absolutes
"Black or white" is what Crypto Twitter expects.
Either Bitcoin becomes worthless.
Or it ends up becoming the sole currency in the world.
However, the truth often lies somewhere in between.
Gold never did replace currencies.
Nevertheless, central banks hold many tons of it.
One can't use gold bars to buy a cup of coffee.
But governments do compete to hoard even more.
Scarcity Changes Everything
All fiat money can be printed.
Not Bitcoin.
This is not marketing.
This is mathematics.
A maximum number of 21 million Bitcoins can ever exist irrespective of political changes, economic slumps, wars, and even financial stimulus plans.
In an era when everything can be inflated, scarcity becomes a value in its own right.
Institutions Already Changed the Narrative
Not too long ago, Bitcoin was considered just internet currency for techies.
Now, companies are investing in it.
Financial instruments allow people to invest in it.
Governments talk about regulations rather than prohibitions.
The discussion has quietly evolved from:
"Is Bitcoin real?"
to
"How much Bitcoin should we own?"
That's a massive psychological change.
The Real Competition Isn't Payments
Often, critics claim that Bitcoin is relatively slow when compared to something like Visa.
This is correct.
However, it doesn’t address the issue properly.
Ferrari is not being compared with a bicycle.
Gold is not being compared with PayPal.
The best use case for Bitcoin might never involve paying for your groceries.
It may simply be preserving purchasing power over decades.
Fear Creates Opportunity
Each time Bitcoin collapses big time, there are news reports declaring its imminent death.
Each time Bitcoin recovers, there are news reports declaring its future worth a million dollars.
They both create clickbait.
None of them tell the whole story.
Markets go through cycles.
Opinions shift faster than the fundamentals.
Those investors that know this tend to remain more level-headed than anyone else.
The Biggest Mistake New Investors Make
Bitcoin is purchased by many in hopes of making it big within six months.
They get panicky whenever there is a correction in price.
Others do not give it any notice as they think they "missed the boat."
Experience reveals that it usually takes time for something to gain acceptance and adoption.
It certainly took a lot longer than a year to build the internet.
Same is true for the world economy.
Final Thoughts
There’s no requirement for Bitcoin to displace the dollar.
There’s no need for Bitcoin to be the money we use to purchase our morning coffee.
All that’s required is that many more millions of people throughout the world continue to believe that digital scarcity is worth something.
And based on the trajectory of the financial industry worldwide, it certainly looks like they do.
Because the question isn’t whether Bitcoin will win every fight.
The question is whether Bitcoin already won the war.
