Is Bitcoin The Future Of Money

Hello and welcome to this article all about the futurity of Bitcoin. In the post-obit guide, I’ll exist talking about a range of topics. These include:

• What is Bitcoin?
• Bitcoin’s contempo history.
• Bitcoin’south electric current usability.
• Its various utilise cases.
• The developers of Bitcoin’s efforts to scale the network.
• The Future of Bitcoin with some negative BTC price predictions and some positive Bitcoin forecasts.
• My ain opinion on the time to come of Bitcoin.

By the end of the article, I promise you volition accept learned a lot about this unique cryptocurrency. I besides promise yous volition understand exactly why Bitcoin is unique and that no other digital coin, however, fast it tin can perform transactions, will ever be able to create what Bitcoin has.

Every bit usual, nosotros’ve loads to get through. Allow u.s. begin!

Where Did Bitcoin Come From?

Bitcoin is peer-to-peer, digital cash. It’southward completely decentralized. This means that no dominance can create more of it or determine who has what share of it. The network’s rules dictate everything. These rules are impossible to change without all parties agreeing on them. The inability to modify the rules is known equally censorship resistance. This is a very powerful quality of Bitcoin.

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Bitcoin was created by an anonymous programmer or squad of developers called Satoshi Nakamoto. The decision to remain anonymous was a good one by Satoshi. The network now exists entirely without leadership – a truthful experiment in decentralization.

Bitcoin in Present Day

Bitcoin has come a long manner in the nine years since it was created. It was originally but known about by a few cryptographers discussing ideas on forums in effectually 2009-2011. Information technology found an early on use instance every bit a payment method for criminals using the dark spider web, and it was thanks to this utilise that Bitcoin defenseless its beginning mainstream attending in 2013.

However, as more people understand Bitcoin and its potentially revolutionary properties, more people see the value of holding onto it. Since it has a stock-still supply of 21 1000000 units, as the need increases, and the supply stays the same, the price goes upwards.

This attracts more people to acquire virtually Bitcoin and the cost continues to ascent as they besides meet the value in holding some of their savings in the currency.

During 2017, this steady growth kicked into high gear. A few favorable news events had Bitcoin making headlines once again. The first was right at the kickoff of the yr when the Bitcoin price finally crossed $i,000 for the commencement fourth dimension in around ii years. The bull run was in movement and kept everyone wondering, what’s the future of Bitcoin.

Other factors that collection upwards to the central value of Bitcoin in the period were the settlement of the scaling fence, the activation of the software upgrade SegWit, and the pending launch of Bitcoin futures by the CBOE and CME Group. All these factors showed that Bitcoin was maturing, and it warranted a higher price. However, as more than news publications began to report on the Bitcoin price rise, more than people started to purchase in for financial reasons alone.

Many of these people who bought in during the second half of 2017 barely understood what they were buying. They simply wanted to make money. Without being entirely sold on what a potentially ground-breaking innovation Bitcoin is, they poured money in. This “dumb money” every bit many investors call it created the bubble of late 2017.

The Crash of December/Jan

There’s an old saying in investing or trading “buy the rumor, sell the news”. Basically, what information technology means is that if something positive sounds like information technology might exist happening, you lot should buy the asset associated with it. When that something does eventually happen, you should sell the nugget. That mentality is likely to have caused the crash that the market is still recovering from today.

Basically, a lot of experienced traders anticipated that the CME Group and CBOE futures were not going to be equally major a news event as the inexperienced investors had hoped they would. The market had already been inflated into a full-scale bubble by the time they did launch. With the cost approaching the resistance level of $20,000 likewise, there would besides nigh likely exist something of a pullback in the future of Bitcoin.

In my opinion, the crash of the end of the year was acquired firstly by experienced traders selling close to the height and causing a minor driblet in price. Had those that had bought in later on in the year really known what they were getting themselves into, they would have held their coins through this sideslip dip and continued to prop up the price.

However, fearing that a crash was coming, this mass of inexperienced investors who were responsible for well-nigh of the gains between effectually $half dozen,000 and $20,000 began to sell all of a sudden. By fearing a crash and caring more about the price than the fundamental value of Bitcoin, they created the crash they feared.

Usability of Bitcoin

In terms of its usability, Bitcoin has never actually been more useful. There are all kinds of things that one can buy using Bitcoin. There are many online retailers that have them. One of the largest is called Overstock.com.

Just nigh everything you’d need to get on holiday can be paid for in Bitcoin too. You tin purchase accommodation, flights, and meals out when yous’re there. If you determine you like the identify you lot traveled to, you can even utilize Bitcoin to purchase a business firm there!

You tin too pay for many services from people using Bitcoin as well. These include freelancing services of developers, writers, artists, and many more. It’south even possible to pay for strippers in Las Vegas using Bitcoin these days!

For everything else you could perchance demand, in that location are gift menu services similar eGifter. They let their users exchange cryptocurrencies for gift cards for various companies. These include Amazon, Tesco, Pizza Express, and many more. This makes it possible to utilize Bitcoin to buy but about anything imaginable!

The Futurity of Bitcoin

The future of Bitcoin will largely depend on which employ case it becomes used more ofttimes. There seem to exist two major examples of apply cases for Bitcoin. One is of a medium of exchange and i is of a shop of value.

Bitcoin as a Store of Value

1 of the biggest employ cases that Bitcoin has is as a store of value. This might seem a little featherbrained when we’ve just been talking nearly it crashing only only hear me out!

Bitcoin actually makes an first-class shop of value in its current form theoretically. The only reason it is not behaving like i is downwards to people’s greed and naivety as to what information technology is and why information technology is special. So the value itself plays a key office in the future of Bitcoin.

It’s been likened to “digital gilded” by the co-founder of Apple, Steve Wozniak. It really behaves improve than aureate in many ways besides. It’s easier to store, it’s easier to transport, information technology tin’t be taken from you past force, and the quantity is known. Aureate is problematic for all these reasons.

If you’re struggling to grasp why something you can’t meet (Bitcoin) can exist spoken about in the same way as Gold, then let me explain something about the value that plays a huge office in the future of Bitcoin.

What is Value Anyway?

Value is created by humans. Think almost a diamond or aureate. It doesn’t do annihilation. Y’all can’t eat it, and you lot can’t use it to keep yous warm.

You can only really sell it – provided someone will pay for it. If yous went to a remote jungle tribe that doesn’t value golden and tried to sell it to them, they’d probably express mirth at you.

How nearly this example. World War III breaks out and of a sudden all the bank’s collapse and the dollars in your pocket become worthless. Nobody wants this paper with a president’due south face on information technology anymore. Therefore, it carries no value. In this instance, nutrient, weapons, and ammunition would exist the near desired commodities and their value would become upwards.

Gold itself is a chip of a dated commodity. As I said, you can’t shop it well, you can’t travel with it well, and it’s easy to steal from someone. It’southward only valuable considering every bit a global society, nosotros take decided it is. If nosotros as a global gild make up one’s mind Bitcoin is better than gold for this purpose, it of a sudden fills that role. Already people are waking up to this reality since the planet has decided to store over $100 billion in the asset.

Bitcoin as a Medium of Exchange

Another use case for Bitcoin is using information technology as a medium of exchange. As previously mentioned, Bitcoin is already used effectually the world as a medium of commutation. Could the futurity of Bitcoin exist it condign the main medium of the transaction?

Unfortunately, it’s not really that expert in its current class for use as a medium of exchange. Bitcoin is a blockchain-based digital currency. It was designed to be as secure and allowed to attacks every bit possible. This ways it must sacrifice speed for this security.

To maximize the security of the Bitcoin network, it has long times between the creation of each block. Whilst this makes it much more expensive to assail the network for any length of fourth dimension, it also means that transactions are slow to go through.

Another issue with the blockchain that backs Bitcoin is that there is only a sure amount of space per block. This ways that when the network is being used past many people at the same time, not all the transactions that are requested tin can fit into the blocks. This creates a kind of waiting list.

Since the computers that verify the network (miners) are trying to make profits, they include the transactions that have the largest fees attached in the next block. This creates a situation where people keep upping their fees to try and go the network to detect their transactions.

Scaling Bitcoin Helps

Final yr, before one of the much-anticipated scaling updates was added to the Bitcoin network, using Bitcoin was so popular that transactions were costing equally much as $twenty. Clearly, Bitcoin as a medium of exchange doesn’t work quite also equally it can do equally a shop of value. After all, who wants to wait 20 minutes and pay $21 for their $1 cup of coffee.

Loftier transaction fees are fine if you make one transaction to a safe storage solution and leave it (apply Bitcoin as a store of value). However, they’re non great for daily purchases.

Fortunately, there are some ideas to brand Bitcoin more useful as a medium of exchange.

SegWit

The first Bitcoin scalability solution that was successfully added to the network was known as SegWit. This software upgrade works by splitting the data associated with transactions so that not all of it is stored on the blockchain.

This ways that more transactions can fit in each block because each one takes upwardly nearly half the space. When all Bitcoin addresses motility to the SegWit format, the network will have roughly doubled in capacity. This is bully for the future of Bitcoin.

SegWit was finally activated in August of 2017. You lot tin can run across how the marketplace reacted to the upgrade in the chart below.

Since SegWit has been active on the network, transaction fees have been gradually falling to levels that make Bitcoin much more usable for medium purchases. Transactions tin become through in around 10 minutes and cost less than a dollar. If y’all’re ownership something worth $30 or more, this is a pretty fair amount. However, it hasn’t reduced fees so much that true micropayments are a reality.

Lightning Network

One idea the core developers backside Bitcoin take had to scale the network and reduce the number of pocket-size transactions occurring on it is called Lightning Network. Information technology’s even so being developed simply the idea is that users tin can set up payment channels if they program to make many transactions between themselves and a single vendor.

Once the channel is opened, they load it with some Bitcoin and can keep making free transactions using that Bitcoin until the aqueduct is closed. When information technology’s closed, all the transactions are settled as one single transaction and the vendor is paid. A one-off fee is also paid to the network to update the blockchain.

When the Lightning Network is launched, it should aid go on microtransactions off the blockchain and thus free upwardly the network, reducing the fees for all users. This could be the showtime of a new chapter of the future of Bitcoin.

The Time to come of Bitcoin’s Price

There have been many different cost predictions for Bitcoin made over the years. These range from the negative to the highly optimistic. Let’s look at some of the more famous examples. Unlike cost predictions for diverse altcoins around, Bitcoin price predictions are oft made by people with either financial or technological backgrounds. This makes them someone more reliable. That said, no one can truly know what volition happen!

Negative BTC Price Predictions

The likes of Jamie Dimon of JP Morgan, and Charlie Munger and Warren Buffet of Berkshire Hathaway haven’t actually given numerical Bitcoin projections. They are famously anti-Bitcoin, however. If pressed for a number that Bitcoin might somewhen accomplish, it would probably exist zero from all iii of them.

Last September, Jamie Dimon famously dismissed Bitcoin equally a “fraud”. He went as far as to say that whatsoever of his staff found to be trading Bitcoin would be fired. Rather amusingly, JP Morgan was later found to be buying upwards Bitcoin and Dimon was defendant of market corruption for his earlier comments.

Meanwhile, Warren Buffet probably should take the prize for the well-nigh creative insult levied at Bitcoin e’er. The 87-year-old billionaire said that the digital currency was “probably rat toxicant squared”. He has also admitted that he’s non very good at identifying trends in technology.

Finally, Cafe’s sidekick Charlie Munger has as well protested against Bitcoin in the past. He stated earlier this year that information technology was a “scum ball activeness” and didn’t really offer much else in the way of explanation for this opinion.

Interestingly, these 3 are some of the loudest voices against Bitcoin and they all come from the earth of traditional finance. It’southward no coincidence that traditional finance is the sector most threatened by the disruptive potential of the Bitcoin network either. Information technology kind of reminds me of that old maxim almost turkeys always voting against Christmas.

Positive Bitcoin Projections

I’m sure this is the part of this “Future of Bitcoin” article yous’ve been waiting for – the positive Bitcoin projections!

In this section of the article, I’k going to look at iii of space’s all-time thinkers’ BTC price predictions. There’s the realistic, the optimistic, and the downright wild!

Our first BTC price prediction comes from an private with a background in investing and technology. Alexis Ohanian is the co-founder of the social media forum Reddit. He’south likewise an investor in various blockchain projects.

Alexis is very bullish on Bitcoin and blockchain engineering science in general. He believes that by the end of 2022, Bitcoin will accept gotten over its contempo slump and returned to an upward trajectory. In fact, he thinks it will accomplish its all-fourth dimension highs of close to $20,000 later on this year.

Tom Lee

An even more positive Bitcoin projection comes from Tom Lee. Lee has a background steeped in traditional finance. He previously worked every bit a strategist at JP Morgan and is now working at Fundstrat.

Lee believes that we will see a $25,000 Bitcoin at some point towards the cease of this yr. He also believes that past the end of 2022, we will meet a $64,000 Bitcoin. What makes Lee’s Bitcoin forecast more credible is the fact that he has been right earlier. He was ridiculed for his earlier call of a $10,000 Bitcoin at some betoken during 2017. Of form, the price eventually near doubled this figure!

John McAfee

Finally, nosotros become to slightly less believable. This Bitcoin forecast for the futurity of Bitcoin comes from John McAfee. McAfee is famous for his range of anti-virus products and has go something of a cryptocurrency guru in recent years.

In the digital currency space, he’s most famous for his $1 million price prediction. However, information technology’southward not just his extreme BTC price prediction that has won him media attention. Information technology’s what he said he’d do if the toll didn’t reach $1 million.

Terminal year, McAfee stated that he would eat his ain manhood, live on Tv set if the cost didn’t hitting $500,000 past 2022. Midway through the bull run of 2017, he famously doubled the bet he made against himself whilst keeping the forfeit the same. John either knows something we don’t or is absolutely crazy!

My Opinion on The Future of Bitcoin

So, we’re nearly all washed with this “Future of Bitcoin” commodity. There’southward simply fourth dimension for me to add together my own thoughts to information technology. Before I do so, I must remind you that this is in no way to be taken as investment advice. It’s but my opinion on the future of Bitcoin. If you’re wanting to invest in Bitcoin, information technology’southward vital that you practise so because you believe in the technology. To fully believe in technology, you must first understand that technology.

Whilst articles like this give you a skillful basis for your ain enquiry, they’re non enough. Information technology’south crucial that y’all take this as a starting bespeak and do equally much report as yous can. If y’all however desire to invest, you should exercise and so cautiously and only with money you can beget to lose.

Warning out of the mode, hither’s what I think of the future of Bitcoin.

Bitcoin is uniquely positioned in the cryptocurrency space. It’s non only got a massive offset-mover reward, but it has some elements that no other digital currency can reach today.

Firstly, it has no leader. There is no one that whatsoever authorities could throw in jail if the currency starts to threaten traditional currencies.

Secondly, it is past far the virtually censorship-resistant currency. If the network doesn’t want a change to happen, it simply will not happen. This is 1 of Bitcoin’s nearly powerful qualities.

Finally, it is truly decentralized. This is largely thank you to its organic growth and this growth is something that cannot be achieved once again at present that people dive on projects to enrich themselves. Bitcoin evolved into the global brute it is today under the radar. It only emerged when it was ready to practise and then.

These unique backdrop when taken together make Bitcoin something that is incredibly valuable to the planet. It’s important for people to accept a store of value that is out of the command of potentially oppressive governments and their institutions. Bitcoin represents a future with true financial liberty for all. This is something that many investors are yet to grasp. The true value of Bitcoin volition bear witness itself when times are at their hardest and well-nigh unfair.

Whilst governments can attempt to regulate confronting it, any damage that can be washed to Bitcoin is only temporary. It cannot be stopped now and any government that wants to accept a tool for complete financial liberty away from its people must exist questioned and overthrown immediately.

Decision

So, that’due south it. That’due south my article all near the future of Bitcoin. Did y’all learn annihilation? Did you lot find it enjoyable to read? I promise so!

During the article, I’ve covered a lot. Information technology’s probably wise to accept a quick recap. I discussed:

• What Bitcoin is?
• Bitcoin’southward recent history.
• Bitcoin’s usability today.
• The various use cases of Bitcoin.
• Bitcoin’due south developers’ efforts to calibration the network.
• The Future of Bitcoin. I looked at both negative BTC cost prediction and positive ones.
• My ain thoughts on the hereafter of Bitcoin.

I actually hope you learned something from this commodity. It covers many of the almost important concepts in cryptocurrency. For many getting into space, Bitcoin might seem dated and like sometime news. It’s easy for them to forget the crucial aspects that brand a digital currency value in the first place.

Bitcoin was created equally a reaction to the savage and destructive practices of central bankers during the last financial crash. Information technology is much more than than a fashion to ping money effectually the globe or a “get rich quick” scheme.

Anyway, now that nosotros’re all done, what exercise you think the future of Bitcoin will be? We’d beloved to hear your thoughts. If you wish to learn more, read this complete Bitcoin prediction guide.