If Bitcoin will succeed or not is an interesting question. For the time being, Bitcoin holds a leading position across the cryptocurrency market. It jumped to 7-weeks highs this Wednesday and it seems that Bitcoin will have a considerable price breakout, just like gold. People will be forced to rethink their investment strategies based on the way the cryptocurrency behaves around current price levels.
Chaos theory shows the limitations of making predictions. One cannot simply anticipate all possible future events. Maybe so, yet Bitcoin isn’t one of those “inherently unpredictable” things.
You can do an analysis for tomorrow and find patterns to make predictions. Will Bitcoin be the winner of the cryptocurrency future? If Bitcoin will succeed, it will be based on its qualities and not on what people say.
What does the future hold for Bitcoin? Let’s start by making sure we understand the basics.
Review: A Short History of Bitcoin
Bitcoin has existed since 2009, so it’s not exactly new. Numerous attempts were made to create a practical digital asset that couldn’t be copied or counterfeited. Nevertheless, nobody succeeded in developing a reliable e-cash method like BTC.
Satoshi Nakamoto – The One Who Supposedly Discovered Bitcoin
Satoshi Nakamoto published in 2008 a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”, in which he enlarged upon the functionality of the blockchain network. It represented a disruption to the hogged field of centralized financial power. Strangely enough, Nakamoto denied being the founder of the online currency. He may not be Bitcoin’s creator, but Nakamoto possesses about 1 million BTC.
Many say that the original whitepaper sounds like it was written by Elon Musk. But there’s no reason why he would’ve hidden his identify all this time. What is certain is that Musk is now tied to the mystery behind the creation of Bitcoin. It doesn’t really matter who’s the father of Bitcoin. What matters is that we can take advantage of this unique network as a payment platform.
First-Ever Transaction Involving Bitcoin
The first real-world transaction with the cryptocurrency was reported on the 22nd of May, 2010. It’s so notorious that even amateurs know about it. A Florida man traded 10,000 BTC for two pizzas. Just think about it. Those Bitcoins would be worth more than $80 million at present. Bitcoin Pizza Day is one of the most important events in cryptocurrency history. Following that pizza purchase, Bitcoin drew near the American dollar.
Understanding the Powerful Technology Behind Bitcoin and Other Cryptocurrencies
Why Was Bitcoin Created in The First Place?
Bitcoin was invented to solve the problems related to real money. It was the very first decentralized peer-to-peer payment network. The virtual currency doesn’t require an intermediary, such as a bank, so money can be sent from user to user without the need to exchange personal information. And without having to pay hefty transaction fees. No financial institution can control the supply, by the way.
Blockchain is to Bitcoin what the Internet is to Google
The cryptocurrency relies on a technology called blockchain. To put it simply, blockchain is a series of records, which are referred to as blocks. The blocks are connected with the help of cryptography. You can think of it as a ledger of information. This cutting-edge technology can be deployed to develop games, social networks, storage platforms, prediction markets, and so on.
Here are some interesting things you should know:
- Bitcoin supply is set to 21 million.
- There are 8,115,212.5 bitcoins in existence.
- If you lose your Bitcoin key, you lose your Bitcoins.
Once a financial transaction is recorded, it’s there forever. The blocks of the chain create a permanent record of every transaction, which is available to users in real-time. You can’t say that your Bitcoins were stolen online because the blockchain will prove you wrong. The information is shared across numerous computers, so it’s updated on the spot.
Bitcoin Isn’t A Fad, It’s the Future
Bitcoin’s revolution is still at an early stage. At least, this is what the experts believe. Blockchain technology enjoys a great deal of support from banks and governments. Having understood that they can’t defeat Bitcoin, they have decided to be on the same side. In 2018, the Bank of England affirmed that it would look into the matter – in other words, it would investigate if ledger technology has potential use cases.
Crypto isn’t just another fad that will go away. On the contrary, many companies design mobile applications and software to come to the help of people who are looking forward to investing in cryptocurrency. Applications and software are made to be easy to use. This belief is in consonance with PickWriters’ views. They are adapted to a specific culture, language, not to mention legal requirements.
Other organizations go one step further and obtain venture capital by creating digital currency and conducting an ICO. More often than not, the offering is aimed at foreign investors. Those who comprehend the power of the underlying technology don’t hesitate to make an investment. They don’t fancy themselves as traditional investors.
Bitcoin, as far as it’s concerned, is a monetary innovation combined with a one-of-a-kind technology story. People have tasted, or at least they have witnessed the incredible returns from Bitcoin, so it’s not going away any time soon. Entrepreneurial cosmopolitans place their faith in digital currency. It’s hoped that in the future, Bitcoin will operate in many more environments. A great demand already exists in the market, so the number of adopters will surely increase.
What Will Bitcoin Look Like in The Years to Come?
A modest investment in Bitcoin can ensure a promising future. We don’t know when the cybercash will enter its next phase. The only thing we know for sure is that the days that are about to come will prove nothing but positive for Bitcoin as institutional money enters the market. Decentralized cryptos and apps will dispense power across the system. Nobody can take control or even change the rules as they please.
The value of Bitcoin has been negatively impacted by the lack of recognition in important economies. Is there something else stopping Bitcoin from achieving its full potential? Unfortunately, it’s not ready yet for mainstream adoption. This is what needs to change.
Solving Bitcoin’s Volatility Problem
The reason why Bitcoin can’t be used in day-to-day transactions is that it has a volatile value. More precisely, the price fluctuates all the time. One day it’s skyrocketing and the other day it’s down in the dust. Of course, this volatility can be overcome. The question now is: How? The cryptocurrency market needs more liquidity. There are too many Bitcoins and very few possessors. Additionally, if more financial institutions backed up the cryptocurrency, things would be different now.
Educating People About Cryptocurrency
Maybe people aren’t willing to embrace the crypto-revolution because they don’t understand it. Regular individuals don’t know anything about cryptography. You don’t need specialist knowledge to use BTC, but you must know cryptography to use a Bitcoin wallet. For many, Bitcoin is simply a concept. This lack of education is damaging to the industry, to say the least. It’s necessary to offer a transparent education with regard to how cryptocurrency works.
When the aforementioned issues are solved, Bitcoin will go mainstream. Mass adoption will no doubt become reality. Even the smallest participant in the market has the power to accelerate Bitcoin’s adoption by spreading confidence and sharing valuable insight.
Bitcoin Will Never Be Beaten. That’s the Truth
The publishing of the Bitcoin whitepaper many years ago disrupted the world. It’s important to understand that the cryptocurrency still causes digital disruption. The community has increased with time and the Bitcoin protocol has been adapted accordingly.
If the world’s governments can’t agree on a consensus with regard to blockchain, decentralized cryptocurrencies will transform into a parallel economic operating system. We’re talking about an economy that’s not oppressed by laws and the decisions of public authorities. What Bitcoin does is give power back to the people. This isn’t an exaggeration.
Contrary to popular belief, Bitcoin prices won’t collapse to zero. Many individuals in the cryptocurrency community have held BTC through difficult times and have managed to survive. Tough times come and go. It’s the skill and patience that make you strong when it comes to your coins. Bitcoin can be used as a hedge against disaster. Think about it. You’ve got a chance to invest in something that’s almost as good as gold.
The truth is that Bitcoin’s future isn’t bad. If shortcomings are overcome and the number of conversion options increases, no cryptocurrency will be able to replace BTC as the winning standard.
Elon Musk thinks Bitcoin is brilliant. What is more, the entrepreneur and businessperson claimed that “paper money is going away.” He’s quite right. Coins and paper currency are the preferred methods for paying for things. With counterfeiters getting more skilled at copying banknotes, electronic payments will rise year after year.
To sum up, Bitcoin is a highly complex innovation that stands a great chance of being successful. The cryptocurrency will succeed because it solves the biggest problem of all: centralized banking systems that control everything. People are getting smarter, so they won’t say “no” to crypto adoption.
So by now, I hope you understand why bitcoin will succeed. Let me know if you have any questions by leaving a comment below.
AUTHOR BIO:
Donald Fomby is a communications professional with more than five years of writing experience. Donald runs blog BestWritersOnline and is proud of an uncanny ability to explain the most complex subject in simple terms.
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