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Can Bitcoin Become the Future Major Currency in Forex?

Bitcoin
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It is no wonder that bitcoin has created a storm in the financial world. Every day we are hearing news about bitcoin and how it is becoming a more accepted currency of exchange. Many businesses are now accepting bitcoin as currency and bitcoin is slowly getting the attention of the Forex industry. Though the demands are not global and it has not gained as much popularity as the traditional currency pairs, it is worth considering that bitcoin could become a future major currency in Forex. This article will try to explore the different opinions of this rising debate and try to find a solution. Keep in mind that nothing is certain and this currency can also go extinct without proper monitoring and proper guidelines. It is only a virtual currency that is gaining popularity but only among a small group of traders.

Every day more people are embracing cryptocurrency. Due to the hassle-free and low-cost transactions, large organizations are also considering bitcoin as a standard medium of payment. According to the leading bitcoin investors, the price of bitcoin will soon become stabilized in the global market and more consumers will embrace the use of cryptocurrency.

Trading of cryptocurrency

Many people in the United Kingdom are actively trading bitcoins. Just like any other currency pairs, the price movement of bitcoin is offering a decent profit-making opportunity to retail traders. Financial spread trading is an art and sooner or later bitcoin will establish its presence in the investment industry. But when you trade cryptocurrency you must be aware of potentially significant price surges. Don’t rush to buy bitcoin at a record high since the market will typically retrace to give a second chance to investors. Though the trend of bitcoin is strongly bullish don’t consider it as an absolute value. Just like any other currency pairs, it may change its trend.

The supply of bitcoin is very limited, it cannot meet the global demands

The first arguments that economists from all over the world point out is that the production of bitcoin is insufficient and that it will not meet the global demand. There are many bitcoin mining organizations but they cannot cope with the worldwide demand for production. As a result, the future is not guaranteed – it can fail. Over a trillion dollars are exchanged every day through Forex. Imagine what it would require to supply sufficient bitcoin to make it a major currency. Many economists and market analysts believe bitcoin is only a craze that will soon be over.

No monitoring organization and governments

Another problem with bitcoin is there are no monitoring organizations. It is not like  traditional currency notes that are printed on paper and have government seals. Any broker can start accepting bitcoin and there are many other types of cryptocurrencies surfacing. The most popular is the bitcoin but the list does not stop and it is growing every day. Without proper monitoring and government oversight, the use of cryptocurrencies could spin out of control. This is one of the main reasons major Forex brokers do not offer bitcoin trading. They know there are chances of scam and it will only create problems for their clients.

It has a very low chance of global success

The price of bitcoin is not stable and it is volatile. Prices shoot sky-high one day and take a dive the next. Even if bitcoin continues to grow in popularity, the chances of global success are questionable. 

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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Stephen Rhodes

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