Even in 2021, bitcoin's price reached the sky in April 2021. It broke all its previous records and reached $63000, but in August 2021, its price declined by 24%, and its value dropped to $48000. Despite its volatile market, crypto enthusiasts and investors are pretty optimistic about the future of cryptocurrencies.
What is the future of Bitcoin?
Bitcoin got introduced to the world in 12 years, and people expect it to revolutionize the economic ecosystem. In reality, the revolution has hardly arrived. The first decade of cryptocurrencies like bitcoin has been full of wild swings in price, scandals, and missteps.
However, it is yet to see what the coming decade will bring for bitcoin and other cryptocurrencies. Make sure to check out bitcoinsmarter.org, as it is a great software to start trading bitcoin.
Let's have a look at the vision of Bitcoin and learn in-depth about it.
Compromised Vision of Bitcoin
Bitcoin got introduced by its anonymous inventor named Satoshi Nakamoto. Satoshi released bitcoin's whitepaper in 2008 on 31st October, where he described bitcoin as a decentralized and borderless alternative to fiat currencies that central banks and government control.
Bitcoin network uses the proof of work consensus method for its transactions and doesn't rely on intermediaries or third parties. Bitcoin has been able to achieve its aim of being a reliable medium of exchange through blockchain. Blockchain is an electronic ledger that works with the peer-to-peer network to verify bitcoin transactions.
Nakamoto wrote in the whitepaper that "intermediaries involved in transactions increases the cost of transactions, limits the transaction size and cuts the probability of casual and small transactions" behind the reason for eliminating intermediaries. It is the reason why Satoshi made bitcoin a peer-to-peer network that works in a decentralized manner.
It's been nearly 12 years since bitcoin came into existence, but the original vision of bitcoin got compromised. The decentralized nature of bitcoin has offered a way to centralization. Enthusiasts say that the bitcoin market doesn't get controlled by anyone. Still, the big investors known as bitcoin whales who hold a massive amount of cryptocurrencies can control the market and price.
The method of mining bitcoin has got sacrificed, and instead of it, miners consider enormous mining farms efficient. The underlying technology of bitcoin gets badly affected by problems that result in altcoins and forks long history.
But the best thing is that the negatives of bitcoin or blockchain get balanced by the thriving crypto market. Currently, the worth of the cryptocurrency market is $2.02 trillion. Moreover, there exist thousands of cryptocurrencies that users trade on crypto exchanges.
What will happen to bitcoin in the next decade?
Crypto experts believe that the next decade could prove the potential of bitcoin, and its evolution will gain prominence in coming years. Bitcoin’s ecosystem is vast, and there are some specific areas where investors must pay attention and learn about revolutions in the ecosystem.
Currently, bitcoin stands between medium to complete daily transactions and store of value. Retail and institutional investors want to take bitcoin into action by trading it and earning maximum profits from its volatile market. As a result, Bitcoin has made its way to the mainstream, and some countries declared bitcoin as a valid mode of payment for goods.
But there are few issues with the security and scaling of cryptocurrencies that prevent Bitcoin from getting used freely in the mainstream. However, security is a significant concern as many reports state that many crypto exchanges and wallets have been stolen by hackers. If the bitcoin ecosystem were more secure, it would have gained widespread adoption with an excellent reputation.
Bitcoin as a payment system in the mainstream won't occur unless and until improvements must get done in bitcoin's ecosystem. To be considered as a legal form of payment and investment asset, the blockchain of bitcoin should have the potential to handle thousands of transactions in less time.
The cryptocurrencies that got developed after bitcoin-like Ethereum, Litecoin, and more have gained prominence because blockchain handles more transactions than bitcoin.
Crypto experts expect the bitcoin ecosystem to expand more and bring an explosion of high-speed and low-cost payments. Currently, the price of bitcoin has dropped, but it will soon break its previous records and attain a good position in the market.
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