Bitcoin in the 21 century,
Bitcoin has been announced dead 89 times. It has been called a Ponzi scheme and a failed practice. Writers have debated for it to be lost and for developers to switch to greener pastures. However, moving beyond this talk, it’s not all that hard to compare the increase of Bitcoin to that of another medium: the World Wide Web.
Similar to the web, the early days were full of excitement, over-motivation, and bubble-like acts, often called the hype-cycle.
The emotions of the web lead venture capitalists putting money at any company whose name ended with a “.com”. The idea that a company would gain profitability was not important — all investors were thinking about was growth. Venture capitalists turned to be very greedy.
However, that greed was not surely bad.
Bitcoin is growing and the idea over it is changing. Old exchanges are lost or are dying. The next level of exchanges, such as Coin base, takes both security and governance seriously. Millions of dollars are invested in security analysts and individuals to consult with regulators.
In many instances, companies that are not able to build out their own secure platforms rely on Bit Go, the leading provider of security software in the bitcoin world. The companies constructed on top of its technology have sent over $1 billion in transactions and not a dollar has been stolen or wasted.
Moreover, the number of users on the network and the amount of transactions they send are increasing. Companies like Purse, Change Tip, and Zap Chain are providing actual use opportunities for the technology. Purse allows people to buy things on Amazon; Change Tip allows for micro-transactions; and Zap Chain is offering an incentive for start high quality discussion.
No one can tell for sure (with any degree of truth). Having considered all this, most agree the future is promising. That proposition does have a few cons.
Below is a common prediction:
· Bitcoin itself as a protocol will develop. Many people forget the simple statement that it is a protocol first and the money part just appears to be the first app written over it. Compare it to the Netscape browser written for (mainly) HTTP. It was okay at its time, but then other browsers took the dominance and Netscape was devalued. However, this will not happen to bitcoin.
· The Buying procedures of Bitcoins must be made to much easier than it is currently. All facts shoe that the process will get more standardized, so purchasing bitcoins will be a simple task.
· If Buyers keep pushing / asking Merchant to accept Bitcoins, sellers will be reluctant to the demand. If you go into a store and wonder if they accept Bitcoins and they answer that they don’t, this is the obvious answer. Repeat this practice with 15 other Buyers asking the exact question and the Merchant will think differently.
They just might start looking at Bitcoin acceptance.
· Many of the newly evolved world where payment systems that allow quick person-to-person payment are not accessible, would love to accept Bitcoin. The restrictions are the regulators and the almost near isolation of local Bitcoin exchanges. There is a very large portion of people that simply does not have access to buying bitcoins. Because they cannot buy it – they are bot able to trade with it. This will be changing in the several months or years.
· Volatility will decrease. I won’t say it will be completely gone, the public largely is too sensitive to anything the media gives out about Bitcoins.
· Arbitrage will be close to nothing
· You will follow the movement pickup speed with a few authoritative expert users accepting Bitcoins.
· Increasing number of larger corporations start accepting Bitcoin as a payment option, many companies waiting in the line will jump onto the process soon. This chain-reaction creating factor is very important for Bitcoin to continue its operation.
· Acceptance of Bitcoin as will become an optional currency in developing countries and it would be very significant.
· The market capitalization shows in some way that the currency is now too large to collapse and measure of its own self, it will certainly survive.
So what’s future for Bitcoin? As mentioned previously, it has many benefits and for this reason it will stay relevant as a currency. The large majority of BTC transactions by volume are happening in China thus the two will remain interconnected.
We see the largest risk to Bitcoin being its alternative and/or parallel use by other crypto currencies. Bitcoin experts state that this is never going to be a problem since Bitcoin was the first comer and as such enjoys first-mover advantages.
Currency Brokers will be trading and using Bitcoins more often.
· Bitcoin exchanges in the West (perhaps US, or UK) will flourish and become dominant in volume (assuming that international customers are allowed to engage in and trade).
. Engaging Bitcoin payments within Social Media would be the principle. You would certainly eel native or plug-in based practice around Bitcoin. Think Twitter, Pinterest, Facebook, LinkedIn, etc.
. Apps not connected to money, but related to the open-ledger system of the Bitcoin protocol will begin emerging. People are completely lost when it comes to giving such instances, but we are sure, someone is thinking of a perfect way of using the Bitcoin protocol and creating a non-payment app adding to it.
. Currencies established on the Bitcoin protocol or modified protocol, will begin noticing a market themselves for certain purposes. Such trends and/or segmentation may very well begin.
Bitcoin is the 21st century alternative of gold, only without the keeping issues.
Sending and getting Bitcoins requires users to keep the Bitcoin customer running and linked to other nodes. Actually, by using bitcoins users will be adding to the network, and thus separating the burden of authorizing transactions.
Sharing this work largely reduces transaction costs, and with this makes transaction costs very little. This means that many people will be attracted to use Bitcoins and the predicted future of it is very bright.
IT Specialist & Web Developer
Also published on Medium.