When it comes to cryptocurrencies, Bitcoin is the name that first comes to our mind. It was the first cryptocurrency that was introduced in the market at a larger scale and raised lots of eyebrows among people. Bitcoin was introduced in 2009, and the value of it increased drastically during its peak time.
Bitcoin caught the attention of many investors and media houses as it started surging dramatically during the first couple of years. The value of Bitcoin surged up to 10 times at once, and each Bitcoin was worth $266 at that time. The market capitalization of Bitcoin surged at a massive rate of approximately $2 billion.
However, the ginormous recognition soon started fading out at the same pace as Bitcoin’s value started plunging at a rate of 50%. Soon, investors started losing their faith and enthusiasm towards it. Then the question came to everyone’s mind whether these cryptocurrencies, particularly Bitcoin, could ever supplant the fiat currencies or otherwise.
Predictions of Cryptocurrency
There are a lot of investors and business enthusiasts that are predicting the success of cryptocurrencies at a larger scale. Since the institutional money is being circulated among the market, a large number of changes are expected in the upcoming years. Moreover, the cryptocurrencies are being listed and traded over the NASDAQ.
It is one of the primary modules developed for the exchange of monetary assets, stocks, and shares via a computerized system. Some people even claim that cryptocurrencies are soon going to replace conventional currencies. However, a lot of investments from all over the world are needed to expand the cryptocurrency business.
Knowing About Bitcoin Cryptocurrency
Bitcoin is the virtual currency or digital currency that is circulated over a peer-to-peer network. It is the first digital asset that was circulated commercially for monetary issuance, transactions, and different kinds of protocol exchange over the network. It became very successful in the beginning and its value raised at an enormous pace unparalleled to anything at that time.
The only problem is that Bitcoin is not manipulated or interfered with by any government body or any central authority. Hence, it poses a direct threat or vulnerability to future security concerns. There will be no redemption or compensation with any possible loss or to back the value of Bitcoin. This phenomenon raises a lot of questions related to the liability of one’s property.
Outline of Bitcoin’s Scope
The is much debatable. The applications of Bitcoin are quite ambiguous for many experts. Some of the experts from Harvard University are among the elite members of crypto-advocate. They suggest that the value of Bitcoin will soon experience an overwhelming rapid expansion in the upcoming years.
The value of Bitcoin is expected to rise to $5-10$ trillion by the next decade. These predictions are made by cryptocurrency enthusiasts, who are also termed as ‘Crypto-Evangelists.’ Although, some experts believe that the value of Bitcoin will range between $100-$100,000 in the next 5-10 years.
There are a lot of concerns associated with the fundamentals of the cryptocurrency business. Local currencies or fiat currencies are insured against bank failures by the government. However, it is not in the case of Bitcoin, as there is no central body.
Plus, the success of any cryptocurrency depends upon the investors that should be willing to pay a large amount of money. If you have Bitcoin balances, you won’t be able to recourse the money when Bitcoin Exchange folds up.
These are the concerns that could be visualized from the outside. Of course, the complications begin to get worse once you dig deeper. Besides, it takes higher-level computers to process encryption algorithms for security reasons.
Bitcoin has definitely forced people to think about the applications of cryptocurrencies and grabbed a lot of attention from investors from all over the world. Despite the controversies associated with Bitcoin, it has still managed to exemplify its applications and other possibilities which has eventually resulted in the emergence of other cryptocurrencies such as Litecoin, Ethereum, and Ripple.
Crypto-Evangelists are trying their hard to promote the usage of cryptocurrencies. Currently, the value of a Bitcoin is almost $15,000 at the moment and it is likely to grow 10-fold within 5 years according to some crypto-advocates. Therefore, it is quite impossible to judge the value of Bitcoin as it is highly volatile, and even the experts could not make an educated guess on it.
Bitcoin has inspired a lot of investors despite all the issues that occurred in the last few years. However, it needs more investors in order to achieve its goal to become a part of the mainstream financial system. Moreover, the success or failure of Bitcoin highly depends on the way it handles future challenges and contingencies.