Cryptocurrency is a digital currency managed via a sophisticated encryption system called cryptography. According to crypto experts, cryptocurrency made a massive step from being an academic concept (virtual) to reality with the launch of Bitcoin in 2009. The rise in the value of Bitcoin in subsequent years has captured the attention of investors and media with many people rushing to invest in them.
In April 2013, Bitcoin increased to its record highest of $266 after a surging tenfold over the previous two months. Statistics show that Bitcoin has managed to get a market value of over $2 billion and a drastic fall in its value raised eyebrows on the future of crypto coins. The big question that most crypto investors are asking is whether cryptocurrencies will supplant conventional currencies and become as ubiquitous as the dollar and euro, or if it is a passing cloud that may flame out in the long run. To answer this question, we will focus on the most valued and trusted crypto coin, which is Bitcoin.
A bitcoin is a decentralized cryptocurrency that utilizes peer-to-peer technology. This facilitates functions like currency issuance, transaction processing, and verification to take place successfully by a network. The decentralized nature of Bitcoin means that the currency is free from government manipulation, which makes it less secure compared to conventional money.
According to research, Bitcoin developed digitally through a process called “mining.” This process requires powerful computers to solve complex algorithms and crunch numbers.These unique traits make bitcoins different from fiat currency, which is centralized by the government. It is important to note that the value of bitcoins depends on what investors are willing to pay for them.
The Future of Cryptocurrency
Several crypto analysts have forecasted a revolution in crypto coins as institutional money enters the market. Furthermore, there is a high chance that crypto will be floated on the NASDAQ, which would increase credibility to the blockchain and its uses as an alternative to the conventional currencies. At the moment, some businesses are already accepting payments through crypto-wallets such as Nakitcoins.
On the other hand, some economic analysts cite that cryptocurrencies need to develop a verified exchange-traded fund (ETF). An ETF will enable investors to buy and sell different crypto coins, which will help the crypto market grow immensely.
The Future of Bitcoins
The future of Bitcoin is a hot debate with many casting doubts on how long it will last. However, Bitcoin crusaders have expressed hope on the future of bitcoin. Several of them cite that the market capitalization of cryptocurrencies is expected to explode over the next five years, rising to $10 trillion.
Bitcoins are also becoming a leading indicator for gold, which is making some people nickname it “digital gold.” This means that its market value is expected to rise by huge margins. Nonetheless, critics have expressed doubts about Bitcoin,saying that itsuse is limited to transactions. Its verification process is also less efficient, which makes it more prone to theft.