Bitcoin's bid to replace fiat

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Is it really possible for Bitcoin to replace fiat currency completely, well nothing is impossible for such a prized asset class like Bitcoin and indeed it's blockchain technology, indeed it's purpose is to enable us live free from the shackles of fiat and those who control it, but then it wouldn't be a small feat even for Bitcoin, it is a task full of hurdles, not impossible but a lot would be required for that to happen.

Bitcoin is built on a strong technology yes but yet there are still things it ought to work on to truly become solidified and the widely accepted currency, so in my article I would talk about things or adjustment the blockchain would need to do in other for this to happen.

The challenge facing Bitcoin in its quest to do this is huge but eventually if it could overture this then definitely it will live out it's true purpose and help give everyone financial freedom they have been denied from the traditional means of exchange.

So now let's get on with it.

What Bitcoin needs to completely replace fiat currency

Well for starters, bitcoin has to gain the favours of business, commercial businesses has to atleast trust it enough to use it, when people come to look at Bitcoin in a positive light and large business organizations become even ready to accept payments in form of Bitcoin and individuals also trust this that will be great for Bitcoin especially if business organizations come to accept as a form of payment it will make individuals be more willing to use it since it's widely accepted as payment method and this means one thing bitcoin needs to replace fiat is that it needs to first gain wide acceptance.

Another thing that makes it a challenge for Bitcoin to really be used as a currency is due to its volatile nature, it's too volatile to be accepted widely as a form of payment as rapid fluctuations in price is often common here and this has placed a significant barrier to Bitcoin in it's bid to become widely accepted, if it could solve the issue and is able to solve this extreme volatility problem it will make business organizations likely to use it for daily transactions just like normal currency, no business craving stability would really want to accept wholly Bitcoin that's why it needs to solve this to gain wide acceptance.

Also compared to other cryptocurrency asset which has faster transaction processing speed Bitcoin is rather slow or albeit limited in it's ability to process transactions this then becomes an issue as if it's being utilize then when alot of people are using the network is could lead to congestion and am even slower rate of transaction which could leave customers dissatisfied with the services, so in all Bitcoin network needs to improve on or really work on the networks scalability before it has any chance or replacing fiat currency completely.

Also a major factor which limits any cryptocurrency asset from gaining wide acceptance is largely for their lack of clear regulations, most countries cryptocurrency regulations keeps envolving and for this reason it places much uncertainty in Bitcoin and the cryptocurrency asset class in general which also reduces the chance of Bitcoin in ruling the world of finance, so until there is a clear and also a consistent rule on cryptocurrency use and it's taxation one that is constant and proper it would really be hard for Bitcoin to replace fiat currency completely, so for this to happen cryptocurrency regulations issues got to be solved to ensure the trust of the masses on cryptocurrency.

Bitcoin mining also creates a hurdle in it's bid to dethrone fiat once and for all time, how so? Bitcoin is know for its high energy consumption and this leads to some measure of damage on the ecosystem as we know it and this makes people question the moral ethics of what causes environmental harm to be used as the standard of payment, many will probably frown at it if it is so, so in other to combat this Bitcoin needs to come up with a solution to this problem, as they could look for a more better way of mining which is sustainable and doesn't impact the environment in a rather negative way.

So Bitcoin gaining wide acceptance and becoming the global accepted means of payment also hinges largely on this mining issue to be resolved either with Bitcoin moving from proof of work consensus mechanism to proof of stake just like ethereum is doing and if that won't be possible then the developers of Bitcoin network could look for a more better way to alleviate this situation which proves to be a dicy one for Bitcoin in it's quest.

Conclusion

I really believe while it is not an impossible task for Bitcoin to completely replace fiat as a payment method it really needs to come up with a rather good solution for these problems facing it, it's really important it do as this will enable it to have it stamped as the widely accepted currency and even the only one which will be used in time and the world continues to go digital and lean towards blockchain and decentralization.