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.

How to improve your English Vocabulary? Learning new English words tips :)

Learning new English words is always a big problem for especially intermediate level students of English language. Because there is a big distance between intermediate learner of English vocabulary level and advanced English learner's vocabulary level. Obviously It is very important to have a comprehensive English vocabulary if you want to be an advanced English student.

Different methods works for different people

Once again, i will exemplify about my vocabulary problem from my past English learning journey. As i have mentioned many times before i have been learning English approximitly 10 years now and i am still a good English learning student.(Learning process should not be end. Never!) At first months in my English learning process i was making some researches about English vocabulary. Because i had realized that improving English vocabulary was very crucial for me if i wanted to be advanced English student. Especially memorizing new words seemed to me very very difficult, because i was forgetting new words after 2 or 3 motnhs always. There were loads of way of memorizing new words and none of them was working for me. Have you realized that i am using a wrong word for an improving process? I am sure that yes you have realized that i have been using the word "memorize" instead of "learning".

Not memorize, Learn it !

After may be 6 months or 1 year i realized that i had missed something important. My way of studying English vocabulary and new words were not false or bad, my point of view to vocabulary was false and bad and therefore i was not be able to "learn" new words!

Then, i decided to "learn" new English words instead of memorize, and this made for me a very big change. Trying to memorize new words was like a torture whereas learning process was fun and enjoyable. Memorizing has just 1 dimension however learning has different dimension and approaches.(Like understand soul of the word, picturize the word in your mind or create a story in your mind for the word)

After changing your point of view for English vocabulary, you have to decide what learning way you want use and will work for you.

For example i was keeping a excell word list and using a mobile phone application at the same time. When i was at work sometimes i was studying new words from my phone and application and in the evenings i was studying same words at home. This was good for me and my learning new English word process was very fast.

Use it in your daily life

If you don't want to forget your new learned English words easily, you should take it into your daily life. I do not know how you can do it because every person has a different way of studying or learning but i know that you must it :)

For instance i like writing new essays with using my new learned English words, it  helps me a lot keep new words in my mind always. If you like writing you could also use new words in your sentences. Or you could make a excell list or use a smart phone application for using new words in your daily life. Be sure, it will help you improve your vocabulary ;)

If you have any other advices for English vocabulary or you want to share your opinion please make a comment in below :)

See you next essay, bye for now.