What Will Happen to Bitcoin in the Next Ten Years?
The introduction of bitcoin to the money market was meant to be more of a financial revolution. Yet, this is still hardly the case. The first decade alone has seen a series of escapades, from scandals to hacking to politics, let alone bitcoin’s volatile nature. After achieving a record high of $65,000, bitcoin now stands at circa $24,000 as of February 2023.
However, investors and cryptocurrency enthusiasts remain optimistic about bitcoin’s future despite recent setbacks. This optimism could prove crucial to the cryptocurrency’s success in the coming decade.
A Compromised Vision
Satoshi’s dream was to have a borderless digital currency that was 100% decentralized. Unlike fiat currency, which entirely depends on government regulations, bitcoin is said to have a seamless blockchain peer-to-peer transaction-based technology. Suffice to say, no third party is involved in bitcoin transactions. The move was as a result of the idea that mediation tends to increase transaction costs, thereby, attracting limits on transactions. This, in turn, limits the maximum and minimum transaction amounts and daily utility.
Close to fifteen years later, the original dream of Satoshi Nakamoto is compromised, to say the least. Bitcoin whales with massive crypto holdings have a say in the market flow and prices of cryptocurrencies. Surely, decentralization has given way to centralization. The efficiency of massive mining farms has forced a re-evaluation of the democratization of printing money through mining. However, the technology behind bitcoin is plagued by scaling problems, leading to unending forks and altcoins as anyone with a computer and good internet can create their own money.
Since its inception, more than 12,000 other cryptocurrencies have been created and are currently being traded on exchanges. Blockchain technology has become a familiar term and is a possible solution to difficult issues. Initially hesitant, even institutional investors are now showing interest in crypto-assets as a form of investment.
Evaluating the Next Decade
It is with no doubt that the next decade is critical for bitcoin’s evolution. Besides financial ecosystem revolutions, bitcoin investors should keenly see certain important aspects. Today, cryptocurrencies are at the centre of daily transactions and are an actual store of value. Most intuitional investors are keen on getting maximum profits from the volatility in crypto prices, and so are governments. A good example is China and Japan, which have declared crypto as a valid means of payment.
But again, all is not merry in the DeFi. Several problems have lingered in the crypto world. Security is the greatest challenge as billions of dollars worth of bitcoin have been lost to hackers. There has been an emergence of several alternatives to bitcoin as a result of hard forks. Hence, bitcoin cash and gold enable the parameter to handle transactions faster.
Ripple’s CTO, David Schwartz, hints at how the bitcoin ecosystem will expand, just like Ford Model T in 2018. He talks about high-speed transactions at low cost transforming value exchange, and how the internet transformed communication. Indeed, a revolution is looming, especially with large banks like Goldman Sachs reopening their crypto trading desk.
Could bitcoin be the currency choice for international trade? Well, bitcoin’s future is still unclear despite institutional investors showing broad interest in the cryptocurrency. But custody, security and efficiency issues are still gale for the digital asset.
Image Source: Adobe Stock
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
DNACrypto Team
Cryptocurrency & Blockchain Experts
