The progress of Bitcoin is making headlines. The success that it has achieved over a short span of time is incredible. So far its claim of being fast, cheap and private is ringing true for many people as they are flocking towards it. Now, even Bitcoin casinos are a new trend across the world. Much like the success of video games casinos, bitcoins are extensively used in casinos as a form of currency. But as much as its successes are making headlines, there is also a huge debate going on about the future of Bitcoin. Will it continue its growth? Or will it collapse? Therefore, let’s look at some important factors and try to answer this question. For that, we will look at the characteristics of innovation defined by theorist Everett Rogers and see what it tells us about Bitcoins:
If we look at the payment systems, Bitcoin seem to have a big advantage over others. For its payment system,Bitcoinhas a decentralized ledger. Compared with the centralized ledger, a decentralized ledger does not have much vulnerabilities. Having a decentralized ledger means that the control of transactions’ records are not in the hands of a single party.
The other big advantage that Bitcoin has over others is its lower transaction costs. While the other payment systems need to go through a third-party, Bitcoin eliminates the costs of third-party transactions because it is decentralized. Bitcoin has created such a system that even global users who don’t have traditional bank accounts can benefit from it.
Additionally, Bitcoin users can’t be troubled by the problem of inflation reducing the value of their currency. This is because Bitcoin will issue only a limited number of coins. Anyone not familiar with inflation should know that it results when the central bank of a country issues a lot of money in order to combat recession.
Bitcoin is very compatible which is very important for an innovation to be adopted by a large group of people. IPhone is a symbol of success in our present world whose success owes much to its compatibility- it incorporated a lot of functions which people were already making use of through their many devices. Likewise, Bitcoin does not try to change the daily mode of people’s lives. It merely requires a cellular device along with an internet connection for its access.
It easily makes sense that any innovation would have a greater success rate if more and more people understand it very quickly. If it is to impact on a large percentage of people, then it should be simplistic enough to be understood by that many people.
That’s why, Bitcoin is not that complex. Anyone with a little bit of understanding about the internet and mobile banking can easily avail from the benefits of Bitcoin. Even novice users will find it very easy to use.
This factor of observability means that non-users could also see the benefits of this innovation. In the case of Bitcoin, it is less clear because in some places like the United States, its use is limited to some places only while in others like Japan, Bitcoins could be seen more easily as a medium of exchange.
Since Bitcoin is a lot more in the news these days, therefore it is likely that more non-users are exposed to the information of Bitcoin’s benefits.
It is the experiencing of an innovation first-hand on a limited basis. Since digital currency ATMs are becoming available in many places across the world, the buying and selling of Bitcoins can be enjoyed by novice users easily. Using Bitcoin for direct purchases are very low but they are on the rise in numerous countries.
The rise of Bitcoin is a recent phenomenon. Therefore, countries have now started regulations. Many are applying the previous related laws regarding Bitcoin or coming up with new ones. This is a clear indication that the success of Bitcoin is not just a passing success. It is meant to stay here for some while. At least it looks like the case after analyzing it on the basis of the above factors.