Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.
I was born in a poor country. During our independence 1USD = 7unit of currency. It got devaluated to such a level that now 1USD = 80 units of currency. We are worst off then we were in the 1990s. Some people have become multi-level rich. It is now one of the fastest rich producing nations, whereas the country is mega poor.
Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period! Rest will be what off shot applications come out of Bitcoin or Ether etc
If we just for once assume 1btc = $480,000, then we quickly realize the potential of this thing we call bitcoin.
Let's assume 1btc = $480000
We can take 1btc and buy a 2bed apartment in the heart of any significant part of the world. We can take 1bitcoin and start our own business. Bitcoin was never built to allow one to buy groceries. However, if one sees the potential to be able to transact in other places where wait time is not crucial, then one soon realizes that bitcoin has a place that will ultimately change the world. You want to buy a car. Bitcoin likely can do that in the future. You want to buy a home. Bitcoin. You want to start a business. Bitcoin. You want to purchase a yacht. Bitcoin. You want to pay utilities that does not need to be paid instantly (usually you get time to pay those). Bitcoin. You want to pay you credit card bills that give you a few weeks to pay. Bitcoin. You want to pay your vendors that live overseas and don't need payment immediately. Bitcoin. You want to send money back home. Bitcoin. Bitcoin has a future.
Every such transaction will likely be a cheaper and more economic benefit for the party that receives bitcoin. The purchasing power increases over time. And everyone will want to use it. Simple. I do not expect amazon to allow bitcoin. However, I expect bitcoin to be used in other parts of our lives in the next decade
Isn’t bitcoin already coexisting with the current financial system? Bitcoin was established to be an independent community, governed by no one, and with the main goal of being decentralized.
Bitcoin has been existing together with the global financial system that we have long ago. It is another form of payment system and currency as well, which has unique features and advantages for those who know how to use it. It can help people to generate income as well, which is a very good thing. You can’t find this kind of feature in a bank or any centralized organizations wherein you’ll apply for campaigns and you can generate money.
However, bitcoin does not guarantee equality in terms of wealth distribution. It can help people make money out of it by investing and such, but it cannot eliminate certain bracket and class which gets richer and richer each day. Remember, bitcoin is open to all and can be utilized by literally anyone. It just depends on how you will make the best out of what you have regardless of the amount.