Bitcoin Leads the Digitization of the World Monetary System and the Financial Industry
November 13, 2017
For the last decade companies which almost do not have physical assets turned out to be more successful in their activities. Therefore Bitcoin is leading the digitization of the world monetary system as well as it is on the way to compete with the existing financial currencies and the whole financial industry in general.
Amazon as the second-largest technological company in the world market with its financial assessment in $544 billion has been repeatedly being called a 'bubble' with an 'unstable business model' for its existence. Nevertheless this company turned finally into the leading service provider in the international e-commerce industry.
Considering the tendency to limit inventories of physical assets such companies as Uber and Airbnb structurally similar to Amazon have been decisively exceeding investors’ expectations. Both Amazon and Uber do not need a large number of cars to operate the world’s most widely used network of transportation and intelligence. Besides, Airbnb does not own a large number of real estate but operates indeed a powerful network in the hotel market.
Despite the lack of physical assets the three aforementioned companies have completely changed the fields of their activity using innovative and truly revolutionary technologies.
As a matter of this fact Bitcoin conducts an almost identical digitization process in the global financial industry. While Bitcoin users are able to own a cryptocurrency in the form of real money, the vast majority of bitcoins is stored in purses and trading platforms. Under those circumstances Bitcoin transactions are carried out in a peer-to-peer manner withought unnecessary intermediaries.
Nowadays Bitcoin is increasingly recognized as a reliable store of value, a ligitimate asset and the ‘digital’ gold.
Hedge funds, institutional investors and retailers are insistently seeking for being participants in Bitcoin investments in the markets of Bitcoin as well as of other cryptocurrencies. Such investments were recently called by the CME chairman Leo Melamed 'a new asset class'.
In the long term Bitcoin is actually competing with the existing currencies as well as with monetary, financial and banking systems therefore will become the global digital currency.