What is the future of Bitcoin? Will it become a mainstream currency or it will disappear?
Bitcoin is the most famous and popular cryptocurrency in the world. This does not come as a surprise since it is the first cryptocurrency the world has ever known. More interestingly, it is the world’s first real and promising step towards a true digital currency. Since its inception, many people have followed the cryptocurrency with keen interest.
A Close Look at Bitcoin Future Value: Is Bitcoin the Future of Currency?
Ever since Bitcoin was launched in January 2009, its value has grown steadily and it still has the potential to rise.
However, some people are still suspicious of Bitcoin and the crypto sphere altogether. They believe that the hype around Bitcoin is misplaced. Looking at facts, statistics, and trends, I can’t help it but speculate or suggest that the future of Bitcoin looks good.
Bitcoin future price prediction
The future price of Bitcoin goes a long way in determining whether the currency has a future or not. I don’t think there is any person who wouldn’t want to get hold of something that has a high value, or at least, associated with it.
As such, let’s take a look at how the price of Bitcoin has fared over the years. According to Wikipedia, the price of Bitcoin in January 2009 through March 2010 was as good as zero. Between February 2011 and April 2011, 1 Bitcoin (BTC) was worth 1 US$. This marked the period of growth for the cryptocurrency. Fast-forward to December 2017 and you will be amazed to learn that at one time, the price of 1 BTC was $17,900 although the price quickly dropped to $14,000 in 24 hours.
It can be seen from the graph the price of Bitcoin has been soaring high over the years. There are times when it has dropped in value but it always finds a way of going up again. I think we just can’t keep the price of Bitcoin down.
Judging by the shape of the graph, I expect the price of Bitcoin to go up in the future. However, its increase will be influenced by a number of factors and this is what we are going to look at.
6 Reasons why Bitcoin has a bright future
Bitcoin works differently from fiat currency. It is simply a decentralized digital currency that is not controlled by any government or institution. This is one of the most powerful factors behind the success of the cryptocurrency so far. This, alongside other factors, has the potential to see the price of Bitcoin going up in the future.
1. Bitcoin is the gold standard of the digital era
It helps if we begin by looking at the direction in which the world is moving. We are slowly changing from a physical one to a digital one. Our main source of information is no longer the libraries but search engines.
As a result, we also need a currency that matches our new standard of living. At some point, fiat currency will be used less and digital currency will be phased in. Bitcoin will be preferred because it is the “gold” of the cryptocurrencies.
2. Legality of Bitcoin
Bitcoin is a digital currency and it needs the blessings of governments in order to be used to make payments. This is very important because if Bitcoin is accepted as a legal tender in a certain country, its awareness and number of users simultaneously grow.
Bitcoin has been accepted in several countries in the world and more countries are expected to do so in the not-so-distant future. This will allow Bitcoin to be the currency of the future as it will be used by the majority of the countries in the world.
3. Supply and demand
I think the majority of us are quite familiar with Economics’ basic lesson of supply and demand. Only a total of 21 million Bitcoins will ever be mined. This is different to the fiat system in which central banks print more money.
The consequence of putting a limit on the number of Bitcoins that can be mined is scarcity. The price of Bitcoin will go up if the demand is greater than the supply and there will be a time when the supply will even out.
4. Amazon may accept Bitcoin as a form of payment
Any person who has used the internet has probably come across Amazon. There is speculation that Amazon may accept Bitcoin as a form of payment. This will totally work in favor of Bitcoin.
Amazon is a giant online retailer that serves the international community. The number of people who use Bitcoin will increase tremendously if Amazon allows Bitcoin payments on its platform.
Most importantly, the people’s confidence in the cryptocurrency will increase in epic proportions and this can only cause a meteoric rise in its price. Amazon may not adopt Bitcoin now but it will at some point.
5. You don't incur costs when making transactions with Bitcoin
Bill Gates, the founder of Microsoft, once said, “Bitcoin is exciting because it shows how cheaper it can be …”
We rely on third parties such as PayPal when we have to make international transactions. This is a costly exercise as we have to fork out some of our money to pay the “middleman.”
We can eliminate the middleman by paying with Bitcoin. Bitcoin has the added advantage of charging nothing for transactions. This is one way that Bitcoin will help people to save. By allowing people to save more, it will cement its place as a currency.
6. Blockchain technology
One of the most important factors that will see the surge of Bitcoin is Blockchain, the technology upon which the cryptocurrency is built.
Bitcoin is decentralized and cannot be controlled by, issued, or managed by a government or central bank. Bitcoin is a secure currency due to the strong cryptography found in blockchain technology. Bitcoin is more secure than fiat money.
Bitcoin future forecast
It would be unfair for us to ignore the volatility of Bitcoin when we make predictions about the future of the cryptocurrency. Bitcoin is very volatile as evidenced by the fluctuations in its price. As a result, Bitcoin future price prediction is not easy.
There are a number of reasons why the price of Bitcoin might drop. Some of the reasons include security breaches of the blockchain network, negative publicity, and the possibility of taxation.
On the upside, the volatility of Bitcoin is one of the major reasons why some invest in it. The cryptocurrency has dropped its price several times but has always managed to get back in the game.
This is a good opportunity for investors to buy the cryptocurrency and then sell it when its price increases again. Its volatility also allows it to circulate. If the price of Bitcoin would only go down without ever going up, many people would hold onto it hoping to sell when the price is high enough.
Let’s take a look at experts say about the future of Bitcoin. According to Morgan Stanley, a financial firm, investors poured in over $2 billion in crypto hedge funds in 2017 and more funds will be invested in 2018.This shows that investors still have faith in cryptocurrencies. This will continue to give cryptocurrencies, particularly Bitcoin, a life.
Investing in Bitcoin
You may still be wondering if you should invest in your money and start trading. By looking at how the cryptocurrency has performed over the years, it is safe to say that it is not going anywhere anytime soon. Its price is expected to go high in the near and distant future. This offers you a great opportunity to buy Bitcoin now and sell them later at a highly profitable price.
Remember the story of a developer who paid for 2 pizzas with 10,000 BTC in 2010. Fast forward seven years later and those two pizzas are now worth over $100 million. That is the power of Bitcoin. Its value in the future can be truly astounding.
More importantly, trading in Bitcoin is easy. All you have to do is buy when the price is low and wait for it to appreciate. When the price is high enough, you sell your Bitcoins and make a profit. You will definitely need to have a good Bitcoin wallet to store your Bitcoins.
Bitcoin is not a bubble but the future of currency
Is Bitcoin the future of the currency? This is one question that people ask a lot and sometimes, without any clear answer.
There is still a section of people that see Bitcoin as a bubble and want to avoid it like a plague. They have been saying this for more than seven years yet the price of Bitcoin has soared high. Those who invested in the cryptocurrency have reaped their rewards and are still in the game.
The overall picture shows that governments are slowly legalizing and appreciating Bitcoin as a method of payment. This is a great step in the right direction that may result in Bitcoin being used as a legal currency.
Bitcoin is going to play a very important role as the world is going digital. More people are now working remotely and they may have to be paid by Bitcoins in order to avoid third-party charges.
The use of Bitcoins by people is not slowing down. The increase in the number of Bitcoin transactions over the last few years shows an increase in the use of the cryptocurrency. This trend is expected to continue for the foreseeable future. Bitcoin future value looks bright from all angles.
I think Bitcoin is to this generation what gold was to the ancient generations of long ago. They are both valuable and timeless. They are also obtained through a process called mining.If this article was a great source of inspiration, take the time to share it and better yet, start investing in the future of Bitcoin.
Do you want to buy bitcoin? Read our guide.