Bitcoin has already been around since the late 2008 but it started to be known early in the year 2013. This is known to be a payment system and crypto currency. Its main benefit especially when it comes to transactions is peer to peer and anonymous. Unique architecture of bitcoin is primarily set-up in a manner that the creation gets increasingly more resource-intensive and its total production is limited to twenty-one million bitcoins.
Risks and Benefits of Bitcoin
Before jumping into the future of bitcoin, you need to first determine the risks and benefits that this kind of system offers.
One of the biggest benefits of this bitcoin is more on their lower inflation risks. Most of traditional currencies in these days are suffering from inflation and they usually end up losing some of their purchasing power every year. This is especially true as governments are continuously using quantitative easing towards the stimulation of the economy.
Bitcoin will never suffer from lower inflation compared to the traditional currencies. This is due to the fact that Bitcoin mining is known to be limited for up to twenty one million units. This only means that the release of the new bitcoins will be slowing down and its complete quantity will be excavated within the next decades. Experts have already predicted that bitcoin will be completely mined in the year 2050.
Bitcoin also highlights low risks of collapses when compared to traditional kind of currencies that are relying on governments. When currency collapses, it will immediately lead to wipeout or hyperinflation of your savings instantly. Exchange rate of bitcoin is not completely regulated by the government since it is a known to be a digital currency that is made available worldwide.
Bitcoin can be easily carried. Billion dollars of bitcoin can also be stored in memory sticks and even placed in anyone’s pocket. It can also be transported easily when compared to your paper money. But, one disadvantage of bitcoin is that it is considered to be very untraceable in its nature as other organizations and even the governments can’t completely traced fund sources of this currency and it can also attract for more and more unscrupulous individuals.
Recent Bitcoin Price Action
The price of bitcoin are considered to be very volatile from early 2013 specifically when the trading is in between $10 as well as $15 and afterwards it went into its parabolic rise hitting as high as $1163 on the same year.
It spent eighteen months the next year to drop of the entire way back to $200s. It again went into its ascent again due to the persisted global uncertainty that happened.
In the late 2016, news came out emphasizing China’s led buying spree which is intended for those people who wanted to try escaping from Yuan’s devaluation. Bitcoin’s anonymity, simplicity as well as easiness of transactions made this kind of currency very famous for all the Chinese.
In the early 2017, this currency almost hits all time high peaking amount at about $1140 and during that time that Chinese Central Bank made a significant announcement. The announcement puts emphasis to an investigation to all the transactions of bitcoin in money laundering, market manipulation and even for those unauthorized financing.
Get to Know More about Bitcoin’s Future
So, what are the much awaited things that might possible happen to bitcoin in the future? As previously outlined, bitcoin offers huge numbers of benefits and for such kind of reasons; it will always remain to be one of the most relevant currency. The wide array of BTC transactions made this type of currency remained to be interlinked not only in China but all over the world.
You may also see some biggest risks or disadvantages to bitcoin being a substitute or parallel use of other types of crypto currencies. Die-hard fans of bitcoin claim that there would never be an issue since it was introduced in the market. But this kind of argument is primarily flawed because although bitcoin was used for some other payments, there would always be small percent of bitcoins in the market today. One of the main uses of bitcoin is that it is use for storing some values and such reason other types of crypto currencies are given the chance to step in at the same time enjoy the same status if they will aggregate demands.
So, is bitcoin an ordinary 21st century gold version only without issues on storage? Or is it a short-lived type of popular fad that may eventually evolve in the future that would create an immense difference in the economy? As far as the future of bitcoin is concerned, well only time can give you the right and most accurate answer! The only thing that would be very certain for you is the fact that bitcoin price would remain to be volatile in the near future.
