Bitcoin, Cryptocurrencies and The Money in the New Era - 3 -

 4. Trust, Belief and Regulation

As almost for all commodities or financial instruments, trust, belief and legal regulation have a very important effect in also the currency. If a currency has not legal infrastructure, public trust and belief, probably it will not live and be acceptable in the long term.

The reason why most of the people trust and believe the fiat money system is clear. We know that fiat monies are issued by the central banks and mostly they are backed by the states. Actually, issuing by a central bank and backed by a state make fiat monies “the real currency” for the humankind. Unfortunately, it is clear that cryptocurrencies don't have the public trust and belief enough yet. Due to fact that they are not backed by a state and not issued by a central bank people generally consider cryptocurrencies as an unreliable, even a speculative investment tool.

On the other hand, Bitcoin is very young now but it has possibility to become very popular sooner, then it will be able to be a rival for traditional fiat money system or other currencies which means that it could be better to create necessary legislation for cryptocurrencies now. Because later could be too late for this action to take. Even though Bitcoin is not yet widespread and isn’t as wide as other international currencies, taking consideration Bitcoin continues to increase its popularity, regulatory measures will be needed.

There are countries in the European Union that haven’t taken an official stance towards Bitcoins and other virtual currencies, but as Bitcoins continue to be more popular, it is very clear that we are going to see more countries begin to create their own policies in order to regulate virtual currencies. “Further action from other authorities can reasonably be expected in the near future” (European Central Bank, 2012).

 

5.Conclusion

As we have discussed before, it is well-known that Cryptocurrencies have a lot of disadvantages about being widely accepted for now at least. Generally, in financial subjects, making people trust you could take a long time. Due to fact that Cryptocurrencies-Bitcoin have high volatility of value, there is no state or bank guarantee in the back of it and it has not been widely accepted by the community yet, we could say easily that cryptocurrency cannot acquire the role of money for now.

On the other hand, it is an undeniable reality that cryptocurrencies have been attracting a lot of public attention in recent years. Especially western governments, universities and Non-governmental Organizations have been making researches about cryptocurrencies increasing day by day. Moreover, the number of people who invest on Bitcoin are mounting and everyone asks for information about Cryptocurrencies in almost every day to financial consulting firms or the banks. Bitcoins could be regarded as a bad alternative to traditional money with the scope of criminal activities, because virtual currencies would make easier to conduct criminal activity such as: money laundering, drugs trafficking, computer hacking and terrorism.

It is clear that, none of these activities is widespread or extensive to the use of Bitcoins. There are other bad or negative sides to using a virtual currency that do not have to do with criminality such as speculation, risky investment and issue of unpredictability. It is obvious that without necessary legal regulation and central bank or government guarantee, Bitcoin or all other Cryptocurrency users bear all the risks.

It should be accepted that keeping Bitcoins in a digital Bitcoin wallet will leave your virtual currency vulnerable. If we consider the issue in the scope of computer hacking for example. We would say that a digital wallet is weak to computer hackers. In order to attract people attention to this issue, The European Banking Authority has issued this warning to its citizens, “Exercise the same caution with your digital wallet as you would do with your conventional wallet” further urging users of Bitcoins, “not to store large amounts of Bitcoins in their digital wallets for an extended period of time” 

In conclusion, we could say that if cryptocurrency will gain the role of money one day in the future, it must serve also as functions of money also. Even it has some of functions of money like being a store of value, a unit of account and a medium of exchange, Cryptocurrencies cannot execute all these functions properly yet.

Despite the fact that the most known cryptocurrency-Bitcoin has a lot of popularity and a good number of investors, it is clearly known that it is not highly accepted yet all around the world.

After considering all these facts, especially in the short term, it seems that cryptocurrency could be an investment instrument for the investors who like taking risk instead of acquiring the role of money.

Why did Donald Trump Lose the election?

As you probably have already known, the election of president of United States has ended after 4 days of counting marathon. It was a very important election because it is obvious that USA is not an ordinary country but most powerful and prosper country in the world actually. 

Former vice president Joe Biden has been elected the new president of United States after a very tiring
election process. Moreover he achieved that by getting back some of states which had been lost by the Democrates in 2016 election.

On the other hand, big loser of this election is Donald Trump's own not just Republicans. Because he has become just fourth incumbent president who lost second term of re-election. In USA generally president who is in white house has more advantage in presidency election and most of time it is reasonable that an incumbent president could win the election with an important margin like Obama and Bush etc.

Hate speech, Racist and Arrogant

In four year period of his presidency, Donald Trump has shown that he is a real racist-white supremacist and arrogant. he has also used a hard hate speech towards the people who don't support him or his policy. It is also well-known that he has been criticized for his migration policy and Mexica border wall issue.

According to American politic analists, these kind of current issues have affected the result of this 2020 presidency election of United States and especially for Donald Trump's re-election possibility.

Nowadays It is widely accepted that Most of black people, hispanic Americans and minorities have voted for Biden probably and they have a very important role in Donald Trump's leaving of White House.

Court and Law?

Surprisingly at the night of 06.11.2020, Donald Trump made a press conference and declared himself as the winner of the presidential election. While he was speaking about his election triumph, even most of the votes had not been counted and declared yet. Especially in the swing states the situtation was not clear.

After his loss in the election was getting clear, he started to claim vote-rigging and election fraud surprisingly. He declared that he is going to take the election to the Supreme Court and will the election even though he lost the election. 

American people are not very familiar with these kind of baseless claims at their election process in their long term democracy history. 

We do not know if his efforts about taking the election to the court will work or not yet but it seems that he should prepare himself to leave the White House to Biden.