Bitcoin is a digital currency that has been around for almost a decade. Decentralisation, unlike fiat currency, accounts for its popularity. It is managed with the use of advanced encryption technique called cryptography. Bitcoin is the first virtual currency and the largest of its kind by total market value.
According to the trends on the market, bitcoin is supposed to take the world by storm. In fact, many well-known companies including Amazon, Apple Expedia and Subway are accepting payments in bitcoins. The number of merchants accepting bitcoins has increased by four times so far.
Bitcoin was introduced in 2009 and ever since cryptocurrency has been growing. It captured the attention of investors in 2013. People started knowing about blockchain and the way the currency works. After knowing its decentralisation feature, it invited a large number of investors. Soon it emerged as a great way of building wealth. After a couple of years, it attained a market value of over $2 billion at its peak.
The best feature of cryptocurrency is neither government nor an autonomous body regulates it, but virtual currencies are extremely volatile. The value of bitcoins keep fluctuation very rapidly. If there is a chance of earning a good amount of wealth, you are likely to lose your investment.
This is why the investment plunged by 50% shortly after it reached at its peak. Thereafter, it raised one of the biggest concerns among investors that if it holds a bright future or not. Is it worth investing in the cryptocurrency or not? Are alternative currencies to bitcoin going to perform a substantial role on the market? Will it ever become ubiquitous as fiat currencies? Or is it a fad that will blow out before long?
The future of bitcoin
It will still take a very long time to become a globally accepted form of currency. There are various countries such as the US, Denmark, Sweden, South Korea, The Netherlands, Canada, the UK, Australia, Japan and Finland that have accepted cryptocurrencies. The US is the biggest user of bitcoins. However, there are some countries that have banned the use of bitcoins. Technology limitations are the biggest concerns why countries have declared the use of cryptocurremcy illegal.
Technological development will definitely affect the value of the market. Experts expect the usage and demand of the currency will rise if the risk of investment loss minimises and technological issues are resolved.
Most of the investors have no idea of how much blockchain technology has improved. Since the lighting network introduced, it has made easier for investors to complete transactions immediately and improved scalability. It is one of the most important update in the history of crypto world. Core developers are also working on ways to increase the upper limit of bitcoin transactions. This will make it an alternative to Visa and MasterCard.
Large investors are still holding the largest share of the market. The volatile nature of bitcoins often increases the risk of investment loss. A sudden drop in the value of bitcoins cause many investors to leave the market, but there are bigwigs that do not lose their position. They continue to invest in bitcoins and build wealth. Smart investors do not sell when the market is down. They wait for an opportune moment. Once the prices go up, they sell to make profits. They perfectly play the game of patience.
Though bitcoin is not a subject to government regulations, it holds the fate of bitcoin. Bitcoins can never be in a position to influence monetary policies. Regulations and acceptance by government is vital to the worldwide Future of Bitcoin. Central banks are looking into the technology that bitcoin is using. Unless the government does not get sure about the safety of money invested in bitcoins and other alternative cryptocurrencies, it is not going to be pervasive.
The bottom line
No matter what challenges the crypto world is facing right now, bitcoin will never die. The future of bitcoin is undoubtedly bright because experts are making efforts to improve the technology. Some investors are so fond that they take out short-term loans including doorstep loans with an aim to build wealth. Governments around the world are even observing bitcoin as a sign of progress for the blockchain industry.