Are Bitcoins Leaving a Hole in the Economic System?

Until today, even with the recognition of many economics experts and authorities regarding Bitcoin’s benefits for the entire cyberworld and the actual world, some people are still accusing the world’s widest-recognized digital currency as leaving a hole in the economic system. But on a serious note, does it really affect the current financial system greatly?

In every country, a law prevents people from using another form of currency except for the nationally-recognized and government-issued ones. This law is meant to protect people from inflation caused by the lesser-known money. If the lesser-known currency picks up pace, it would damage the financial system and the national mints will have to print more to stop inflation.

By law, bitcoins are illegal, but for the most part, the laws in every country does not protect the individual, but its lifeblood, the industries.

Today’s laws protect established companies from being met with unfair competition and certainly, if bitcoin became part of a country’s circulation, it will definitely bring down existing banks and financial companies. With nobody paying for bank services, a shortage of jobs, closure and industry shutdown could happen.

Are bitcoins leaving a hole in the economic system? You bet, but it is not all that bad.