What is the future of Bitcoin? This is what we know for now
Until Bitcoin, we weren’t aware of another way of dealing with money other than physically. Transfers were made through banks and other financial institutions, but it wasn’t the best way to hold on to cash. Once Bitcoin was released to the market in 2009, we learned a new way of financing through cryptocurrency. Although it was and still is a controversial subject because not all people fully trust this method of keeping their money, Bitcoin was the one to prove that it was stable enough to resist until now.
Still, the future of Bitcoin is questionable, given that its supply of coins is limited. It has already reached more than 19 million coins in circulation out of the maximum amount of bitcoin that can ever exist, 21 million. This worries investors because Bitcoin, next to Ethereum, is a strong and stable asset to have, which is why they wonder what will happen to Bitcoin in the near future. Let’s find out what are the potential scenarios.
A short insight into Bitcoin’s development
When Bitcoin was released, its inventor wanted to create a “borderless and decentralized alternative” to anything that has to do with third-party financial businesses that would control what happens with people’s money. Therefore, since transactions on this blockchain wouldn’t need such an authority, the consensus matter would be solved through a peer-to-peer network of systems where ledgers verify the authenticity of a transaction.
Since then, bitcoin has suffered a few changes each year, where new upgrades would be introduced to the system. The latest one, 22.0 Bitcoin core, has added support for running the blockchain as an I2P and removed its support on Tor v2 services.
Still, all these upgrades wouldn’t solve the issue regarding mining. Each cryptocurrency will eventually have this problem, especially if it’s running for a long time, because as more people are active on the blockchain, the system can work slowly. Blocks are harder to mine, and those mathematical problems become harder to break, which means the computational power used now will weaken as years pass by. This matter is more worrying, considering Bitcoin is close to its end. But what will happen to it in the future?
Experts’ opinion on the future of Bitcoin
It’s difficult to predict what will happen to Bitcoin, even though its coin supply will end. Still, some professionals are optimistic about Bitcoin’s course for the next ten years because its market cap dominates the coin market, which means that investors trust it more than other assets.
Therefore, people like the CEO of BTC China and even an American multinational service provider state that Bitcoin’s value will increase so much in the next year that it’ll reach the equivalent of gold.
Knowing this, you might be tempted to invest starting now, so you need to know what is the price of Bitcoin. Whatever its current state is at the moment of your reading, the crypto market is volatile, so the price can increase or decrease depending on the supply and demand or what the media states about it. However, considering that it might get more challenging to mine in the future, you should do some research to decide if Bitcoin is worth investing in.
Will Bitcoin disappear?
According to predictions, Bitcoin is less likely to disappear since it has become an established platform utilized by many investors. The only situation in which Bitcoin would perish is if every miner on the blockchain stopped making transactions, which is unlikely to happen at the moment. Still, the system that we know now might change to support what’s to come in terms of price and computational power, so we might witness a new crypto revolution in a few years to help all investors.
In the worst case, the cryptocurrency’s value suddenly falls to zero, immediately making Bitcoin and other coins useless. We should consider that until now, investors and crypto users were the ones to support the blockchain and make it so popular since many small investors were rushing into the market, wanting to make an easy profit. This has led to many crashes in the past, but they eventually regulated Bitcoin’s volatility in some way.
What problems did Bitcoin solve?
It’s safe to say that Bitcoin revolutionized the world because the financial system is full of flaws, from inflation and questionable regulations to inequality and poverty. It is now advantageous for a few, while most regular people are much more affected by it, and this is what Bitcoin would change through its decentralized nature. However, let’s see what Bitcoin actually changed until now.
First, around two billion people worldwide don’t have any access to a bank account, meaning they don’t have a place to hold their money or use a bank’s service. But with Bitcoin, many developing countries can have the chance to save, pay and send money securely and safely with only a regular smartphone.
Secondly, Bitcoin is deflationary and censorship-resistant, meaning it’s safe to store, send and hide. It doesn’t inflate like the Venezuelan Bolivar or the US dollar, so you’re not risking losing all your money and assets in more challenging times. Bitcoin is an excellent option to escape the devaluation and inflation affecting the whole world at the moment.
Finally, Bitcoin has already solved the problem of tokenization. This is done with gold, houses and even cars that are divided into smaller units, each one of them getting an assigned value. Tokenization provides new opportunities for profit selling when the tokens increase in value. When tokenization is done through blockchain, the transactions are stored publicly transparently, which can facilitate the sharing economy.
So, Bitcoin is here to stay, even though many would expect it to disappear. It seems like it will continue providing a better way for people to hold their money and invest, but it can change in a new form to adapt to future technology requirements. What do you think? Are you excited about a new Bitcoin era?