Bitcoin - success or flaw?

Before we start talking about the success or flaw or Bitcoin, let us try to understand few basics.

Before we talk about digital currency, Let us go, step by step to understand how trading works.

What is currency?
Currency is a form of payment, which has a specified value.

What is the purpose of currency?
It is used to exchange (trade) it for a good(s) or service.

What are all the type of currency available?
Every country in the world has its own currency and some countries share same currencies. For example, USD, CAD, AUD, Yenn, etc.

Payment methods:
Cash (notes, coins), Check, Credit card, various online money transfer

How was the good(s) or services happened before currency was invented?
Before currency was introduced to the world, people exchanged goods for goods or services.
For example, if I produce tomato in my land, I use tomato as a form of payment to buy grains and vice versa.

How goods exchange evolved over the century?
Over the period, things started changing as value of each goods or services is different and to give appropriate share for everyone, the need for a common form of payment.
The value of such payment will be constant and people should use one or multiple for a good or service.
For example, for one coin, you get one tomato; two coin, you get grains, etc.

What was the known currency in ancient life?
Mostly metals used as a form of payment. Gold (made coins out of it) is used in the beginning and gold becomes common form of payment as it withstands the tough usage and different weather conditions.

What happened to gold?
Gold mining become difficult and the supply of gold become limited.

What is an alternate to gold?
People started storing gold since the supply started getting low and the demand is high. This become a problem and an alternate to gold started entering the market. This leads to another standardization in the trading and current form of currency born. Each country started creating its own currency and based on the value of goods (demand vs supply) the country trade with, the value of the currency is decided.
The need for a regulatory body emerges to regulate the trade and value. Trading within country and between countries made simple using so many technological advancements.

Each currency is volatile but the country takes measures to retain its value, so that anyone can easily use their currency for trading.

Difficulty in money transfer:
Even though money transfer is made easy by technological advancements, it is still a time taking process.

Digital currency:

Internet become a sensation and a lot of research being done to provide the solution to the lack of speed in money transfer. A faster way to transfer money is found and it needed a currency, which is a Bitcoin.

Now Bitcoin in born with the purpose of being a currency to support faster transactions using less energy which leads to lower fees.

Advantage of Bitcoin:
Google it, you will find lots of security features that makes the transaction safe and faster.

What is the biggest mistake of Bitcoin?
The limitation of the available Bitcoin is set as 21 Million.

Why the limited Bitcoin is a problem?
Every country mint limited number of currency every year. Only a collectible currency is minted in a limited quantity.
All collectible coins become a valuable asset over the period of time . This is what exactly happening to Bitcoin.

Bitcoin is now became a valuable asset rather then serving its original intended purpose. Read what happened to Gold. This is exactly happened to Bitcoin as well. It become a virtual asset.

What will happen to digital currency?
There are other alt coins came in to market with no limited supply. Also the alt coins has better processing time, use of less energy, even lower processing cost, etc.

What are altcoins?
Alt coins are digital currency other than bitcoins. Several crypto master minds started creating currency similar to Bitcoin but they mint pre-set quantity of their coins every year. For example, Ethereum mint 18 million coins every year. This make sure that the supply is always there and demand never overturn supply.

We now have unlimited supply. Now what?
Even with unlimited supply, another big problem is volatility. Every currency should be stable enough, so that small and medium scale industries can adopt the currency for their day-to-day operations.
With High volatility, no small or medium scale industries accepts digital currency.

What is needed now?
Some regulation to stabilize the value of the currency, so that people can start using that as a currency instead of an asset.

This is my point of view about Bitcoin and digital currency. If you have any questions or comments, please feel free to ask/comment.