🚨Bitcoin's Evolution: From Asset to Currency‼️
Recent enthusiasm within the Bitcoin community stems from the endorsement of Bitcoin spot market exchange-traded funds (ETFs), as reported by CoinDesk. Nevertheless, Bitcoin's true potential lies in its utility as a currency rather than merely an asset held in ETFs or hardware wallets. Zac Townsend, CEO and co-founder of an insurance firm that deals in Bitcoin, envisions a future where Bitcoin facilitates robust economic activity.
Bitcoin excels in storing value, settling significant transactions, and facilitating financial services. Given that at least 57 countries experienced inflation rates exceeding 10% last year, Bitcoin's day-to-day volatility in exchange rates may appear less risky compared to the fiscal and monetary mismanagement prevalent globally. However, to realize this potential future, it's imperative to establish companies and institutions within the Bitcoin economy.
Meanwhile, one of the pioneering fully regulated life insurance companies operating with Bitcoin as its currency operates under a modified accounting framework, overseen by the Bermuda Monetary Authority. Adhering to the Bitcoin Standard, this company's financial statements and transactions are denominated entirely in Bitcoin, providing policyholders the option to pay premiums and receive claims in cryptocurrency. This strategy insulates the company from the impacts of exchange rate fluctuations. As more entities recognize the benefits of embracing the Bitcoin Standard, attention will shift from Bitcoin's exchange rate to its role as a store-of-value with the potential to appreciate over time.
