Bitcoin (ticker: BTC) has been around since the end of 2008 but it started making news as early as 2013. It is a crypto currency and a payment system; Its main advantage is that transactions are anonymous and peer-to-peer (ie done directly without intermediaries). Bitcoins' unique architecture is set in such a way that their creation (or "mining") achieves progressively more resource-intensive and total production will be limited to 21 million bitcoins.
This is certainly an interesting concept that has many advantages but also some significant disadvantages. for example:
Given its pseudonym and the owners of bitcoin addresses are not clearly identified, such transactions are effectively anonymous. However, this anonymity is known to attract transactions from illegal activities, the best example being the Silk Road website. This has been a problem with regulators and authorities, as they recognize it as a medium for illegal transactions.
Bitcoin has been recognized as a currency in many countries and as of today it is the most liquid and widely accepted crypto currency in the world. However, there is a long list of alternative crypto currencies that are eager to grab market share and challenge bitcoin's dominance. And what about the limit of 21 million bitcoins? It is possible that once the ceiling is severely limited, users will turn to other crypto currencies, effectively increasing global supply. .jpeg)
Bitcoin trades continuously on exchanges around the world in a very quick and simple way, and is stored electronically in a "purse". However, online wallet providers have an additional risk factor that cannot be ignored. One such example is a security breach on Mt. Gox in 2011, which sent shockwaves to the crypto currency community. At that time, Mt. Gox was handling about 70% of all bitcoin transactions and one day it announced that about 850,000 bitcoins had been stolen. The business was suspended immediately after the exchange and filed for bankruptcy. It is this potential security vulnerability when it comes to crypto currencies that leaves many in doubt .
The price of bitcoin has been very volatile since the beginning of 2013 when it traded between $ 10 and $ 15 Was doing, and soon it went on a parabolic rise hitting a high of $ 1163 within the same year. It gave up all the way back to $ 200 for the next 18 months but then started climbing again as global uncertainty persisted.
It once again reported in late 2016 when there was a China-led procurement race, mainly from people trying to avoid the devaluation of the yuan. Its simplicity, anonymity and ease of transaction made it a very popular choice among the Chinese. It reached almost all highs in early 2017, peaking at $ 1140 and the Chinese central bank made an important announcement at the time. CB said it wanted to investigate bitcoin transactions in market manipulation, money laundering and unauthorized financing. At the time of writing, BTC is trading at $ 828, representing a 2-week decline of over 37%.
What is the future for bitcoin?
So what's next for Bitcoin? As stated earlier, it has many advantages and as such it will remain relevant as a currency. Most of the BTC transactions are done in China by volume, so the two will be interlinked.
We see the greatest risk of bitcoin and its replacement and / or parallel use by other crypto currencies. Bitcoin die-hard fans claim that this is never going to be an issue as Bitcoin was a pioneer and thus privileged for the first time. This argument is probably flawed because BTC is used for payment, it is a relatively small% of all bitcoins. One of its primary uses is stock of value and for this reason other crypto currencies can always step into the same position and enjoy the same position if aggregate demand is required.
Is bitcoin only a 21st century version of gold, only without storage issues? Or is it just a short-lived popular craze that could soon be something different? Only time will tell. The only certainty is that its price will remain very volatile in the future.
Worldwide governments like the U.S., Russia, China, … etc are all developing their own blockchain-based cryptocurrencies. Will everyone adopt BTC as the world's reserve cryptocurrency in the near future? The answer is properly not. However, due to its scarcity and strong intrinsic appeal, it could very well become a store of value asset. Only time will tell....
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