Hello Steemians, today I will present my third post about the 5th challenge "I love bitcoin" to celebrate Bitcoin's twelfth anniversary . In which,i invite you to take a look behind the scenes of the latest barrier that Bitcoin must overcome in order to overwhelm traditional financial institutions.

^{Source: My own treatment with photofilter}

We are one step away from a historic event. The financial institutions that have controlled the world's monetary systems for centuries are on the brink of being crowded out. They will be replaced by an automated, transparent, decentralized financial system.

But before that happens, bitcoin must solve another problem. Once this last hurdle is overcome, widespread adoption of bitcoin is not only possible; it will be inevitable.

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Bitcoin advocates have been touting their benefits for over a decade. The technology may appeal to many, but three of its advantages stand out the most:

• It is decentralized

• It is not intended to lose value over time

• It is transparent

Bitcoin is decentralized

The main problem with traditional cash is that it is government controlled. The value of currencies can be freely manipulated by government officials and bureaucrats. This is a serious problem for the exchange environment.

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China is a good example for studying currency manipulation. In order to increase the competitiveness of Chinese goods in the world market, the government periodically reduces the value of the yuan. Needless to say, this intervention has very real costs for the average Chinese citizen. Every time the government lowers the value of the national currency, all salaries and savings in RMB lose some of their value.

Unlike fiat currencies, Bitcoin does not suffer from this problem. It is not controlled by any government, bank or company. Instead, it runs on a decentralized blockchain protected by cryptography. This means that no one can control it or influence its value.

Bitcoin is transparent and secure

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Bitcoin is completely open source that is available for download. Anyone with programming skills can look at the code and understand how the system works. This way, you can be sure that the system works as advertised.

In addition, the blockchain can also be verified. This means you can verify every bitcoin transaction you make. This not only helps keep Bitcoin safe, but also helps to track stolen and fraudulent funds.

Bitcoin scarcity makes it valuable

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Third, Bitcoin is not inflationary. Traditional fiat currencies are designed to depreciate over time due to inflation. For example, the euro loses anywhere from 1% to 3% of its value every year. From a government perspective, this is good because it stimulates the economy by encouraging people to spend more. But from the point of view of an ordinary person, this is far from ideal. If you earn your salary in euros and keep your savings in it, you lose a small part of the real value of your assets every year. On the other hand, there is no projected inflation in Bitcoin. The number of new bitcoins being introduced into the economy is decreasing every year. When the worldwide supply of Bitcoin reaches 21 million coins, no new coins will be mined.

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Mass adoption of bitcoin: what's we are missing?

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Despite all these advantages, there is still one major hurdle for bitcoin to overcome. And it won't be easy to get over it. To make cryptocurrency the world's main monetary system, we need to close the circle of income and expenses. The massive adoption of cryptocurrencies is widely discussed and the entire crypto industry is committed to it. So let's see in detail what exactly we are missing.

Costs: How Can I Spend My Bitcoin?

Bitcoin can be purchased in several ways. You can buy it with traditional currency through an exchange like Wunderbit. You can earn it in exchange for goods and services. Or you can mine it by joining a mining pool. But now that you have Bitcoin, what can you do with it?

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There are two main ways to use bitcoins as money. The first requires support from the seller. The second is completely independent of the seller.

In response to market demand, many companies have started accepting Bitcoin payments.

• The possibility of making bitcoin payments for Latvian airline passengers in 2014.
• Authorization by several US mobile dealers to buy cars with Bitcoin.
  
• Paying taxes in bitcoin to residents of Ohio. Some of these providers process the bitcoin themselves, while others benefit from the help of companies like Bitpay.

All these exchange operations have created a win-win situation between the various stakeholders which allows several companies to be intermediaries, by receiving virtual currencies such as bitcoins from the buyer and transferring an equivalent amount of currency. trustee to the seller.

Several so-called intermediary companies, such as Cash.app or Cryptopay, provide cryptocurrency payment cards similar to Visa or MasterCard cards. When you pay, a sum of your bitcoins is converted into fiat currency and sent to the merchant. This is by far the most convenient way to use Bitcoin in the real world, as it can be used just about anywhere.

Income: the final frontier for the massive adoption of bitcoin

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It is now clear that Bitcoin is very practical just like real currencies, especially since we can easily spend it. But in my opinion, this is not enough because there is a final obstacle to the massive and universal adoption of this cryptocurrency, which is the acceptance of our salaries being earned with Bitcoin. Especially the payment can be made by Bitcoin instead of in fiat currency, why we not do this conversion?

I want to know if you accept to be paid in Bitcoin especially since there are some companies that give the choice to be paid in Bitcoin.

Some countries in this world fear that their local currency suddenly loses all its value which is not a real problem for other countries especially the more developed ones.

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Conclusion :

For the circle of income and expenses to be complete, the average person must have a strong enough incentive to earn their income in bitcoin. Some think that this might happen when major fiat currencies depreciate and people no longer believe in the myth of government-backed stability. Others believe that this will happen as a result of the unique function of one of the bitcoin. A feature that will make the use of money much more convenient than it is now, and something that traditional financial companies cannot replicate.

Regardless of how it happens, one thing is clear. Once the circle of income and expenses is closed, widespread adoption of bitcoin will not only become possible; it will be inevitable.

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My guess for Bitcoin at October 31st is 13120,92 USD

Regards,

@kouba01