Bitcoin was introduced to the world over a decade ago in 2009, and it was expected to be a revolution in the financial sector. Bitcoin has proved to be revolutionary with blockchain technology on which it is based, but the revolution, in general, is hard to say. The first chaotic decade of cryptocurrencies has been full of negative factors, wild price swings, scandals, and missteps. The drop in the price of bitcoin has been accompanied by criticism.
However, crypto enthusiasts and investors are still impressed with a currency that doesn’t involve governments and banks in its work. Crypto investors have doubled their confidence regarding the future of bitcoin. But it is yet to see in the coming decade that could prove essential for its existence in the market. You can choose to earn profits with surging prices of bitcoin by trading bitcoin by reading what is bitcoin investing?
Compromised Vision About Bitcoin
Satoshi Nakamoto released the whitepaper of Bitcoin on 31st October in 2008, in which bitcoin was supposed to be a decentralized and borderless substitute of government fiat currencies that banks control. Bitcoin works on a proof-of-work concept where the transactions don’t depend on intermediaries or third parties. Instead, the network is based on blockchain technology that connects the bitcoin network with a digital electronic ledger to verify and validate the transactions on the network. The price of conciliation increases the transaction cost and limits the transaction size by cutting off all the casual and small transactions. This is the reason why Satoshi Nakamoto removed conciliation with a peer-to-peer network.
After the end of the first decade of bitcoin, Satoshi’s original vision seems to be compromised as the decentralized nature of the network has given rise to centralization. The investors of bitcoin, those who hold massive amounts of bitcoins, seem to control its price according to their needs. Miners sacrificed the way of discovering new coins through the mining process with mining farms to increase the mining efficiency. But all the negative factors of bitcoin were balanced by the thriving crypto market. The crypto market that was expected to don’t last for a long time currently has a market capitalization of more than $1 trillion.
Today, there are more than 1500 cryptocurrencies that exist and are being traded on crypto exchanges. Bitcoin led to the development of blockchain technology. Today, blockchain has become a common world that is being used in almost every industry that offers a great solution to all complex problems. After hesitation by investors, now with mainstream acceptance, the investors are stockpiling their funds in crypto assets for investment purposes.
What Will Happen In The Next Decade?
Bitcoin’s potential could be well seen in the next decade. There are many revolutions that are made in the financial ecosystem, and there are some areas in the ecosystem of bitcoin where investors should pay attention to. Currently, cryptocurrencies are balanced between the medium of exchange to carry out daily transactions and a store of wealth. Potential investors across the world have shown their interest in cryptocurrencies to get the chance to earn from its volatile and fluctuating market. Even some governments have declared bitcoin as a viable form of payment for the exchange of goods and services.
Bitcoin as a payment medium could only exist in the mainstream if technological improvements are made in the bitcoin ecosystem. In order to consider bitcoin as a viable medium of exchange and store of value, the blockchain of bitcoin should have the potential to handle billions of transactions without consuming much time.
Final Words
With more and more regulations being introduced on the bitcoin network, its ecosystem will expand as this will develop confidence in investors as well. Some crypto experts predict that bitcoin will bring a blast of high-speed and low-cost payments that will convert into a greater way to transfer value over the internet. Bitcoin is soon expected to become the currency of choice for national and international trade. This is said because big companies like Tesla and PayPal have made investments in bitcoin, especially in 2021. Tesla has invested around $1.5 billion in bitcoin, and many companies have announced that they will soon start to accept crypto payments from their clients and customers. But still, there are issues about the security and custody of cryptocurrencies.
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