A gigantic revolution is coming!

Compared with the money we already use. The unique characteristics of bit coins determine its particular role in current money markets. Bit coins are e-money. Unlike the distinction between other material currencies in different types, there is no currency exchange costs incurring in the process. Also bit coins are nearly world-ready currency, which is fully implemented due to the operation on the Internet without intervention by the States or the Governments. It is said that it brought great convenience into the international transaction. 

More importantly, another advantage of trading by e-money is environmentally friendly. Creating (print or coin) material money will result in resource depletion, but bit coins are not. We do not have to worry about problems of resource-exhausted, such as gold will run out, or lacking of paper in the future. 

Otherwise, bit coins are restricted of the algorithm, and the total amount of these would tend to be a stable level that the number of bit coins will not arbitrarily increase, furthermore current prices hikes would not lead to increase the supply of bit coins. In general, individuals will never realise how much money will be created by a central bank in days to come. Even the central banks themselves can not explore it as monetary policy depends on economic variables which usually change rapidly. However, mining bit coins is predictable. In terms of high certainty how many bit coins will be mined over a specified time therefore the growth rate of the Bit coin monetary amount is predictable. As we can see on the following chart, the total amount of bit coins will be remain at 21 million by nearly 2040 and the growth rate will fall down dramatically in the near future. 

Source from : ( https://en.bitcoin.it/wiki/Controlled_supply ; calculating by myself)

From the above analysis, possibly it is shown that the presence and circulation of bit coins will lead to a gigantic revolution in traditional money market.

reference:

Maria A. Arias and Yongseok Shin. 'There are two sides to every coin-even to the Bitcoin, a virtual currency' Regional economist, October 2013 (link here)

Mihaela Iavorschi. 'The Bitcoin project and the free market' CES working papers – volume V, issue 4, 2009 (link here)