Predicting something is quite a difficult dance to pull off, and when it comes down to the future of Bitcoin, it gets worse.
The point is we can be wrong and it is hard for us to be right, and that’s what this article is all about. Today will be talking about whether Bitcoin will become the future of this generation or not. Inception of Bitcoin goes way back the time,so we thought it would be great to talk about evolution of Bitcoin and blockchain.
The first thing that you should know for the fact is that Bitcoin is the oldest and most widely known cryptocurrencies. It is decentralized which means there are no banking institutions or government in control. If you own them then you would be anonymous; rather than using names, social security numbers, and even tax IDs. The reason being, Bitcoin uses encryption keys to connect sellers buyers. As it is mind by extremely powerful computers, the technology involves math, technology, economics, and social dynamics.
What are the effects of Bitcoin on the world economy?
In the time span of last few years, we have seen rapid change in the Bitcoin global market. In fact, it became the world’s leading cryptocurrency and the top performer among the currencies overall. Like it wasn’t enough, it managed to gain an astounding 35% of the past year. But we all can meet to the fact that attend this level of recognition in the global market has been easy at all. Bitcoins association with crimes like narcotics sales and money laundering that usually occurred in dark web sites, made Bitcoin risky choice in the financial market.
How Bitcoin changed the banking industry?
It is recommended that you should never underestimate Bitcoins potential impact on the central banking system. The BIS (Bank for International Settlements), observed that Bitcoin could potentially affect their ability who control the global economy and issue currency. As of now, the whole concept of Bitcoin is being closely monitored by world’s Central banks. Other Central banks like the ones in Ecuador and Canada, have already taken action by creating proposals for insurance of their countries’s currencies.
The alternatives to Bitcoin
With the Bitcoin’s success and growing visibility in the global scale, it has resulted in a number of companies unveiling alternative cryptocurrencies, like;
OpenCoin is known to have launched Ripple. Just like Bitcoin, Ripple is both a currency and payment system. You’d be happy to know that it is an XRP component based currency which has a mathematical foundation just like Bitcoin. Its payment mechanism enables the transfer of funds in any currency to a user on the Ripple network within seconds. However, Bitcoin on the other hand, can take up to 10 minutes just to confirm the transaction.
Litecoinis said to be the bitcoin’s leading rival as of now, as it is specially designed for processing small transactions. Its inception goes way back to October 2011. What makes Litecoinbetter than Bitcoin, is the fact that it can be mined by normal desktop computer, while Bitcoin on the other hand requires heavy computer. The best part is, its maximum limit is 84 million and the transaction can be processed in 2.5 minutes, while Bitcoin’s limit is just 21 million and takes 4x time for transaction processing.
Unlike any other cryptocurrency which has no government control, MintChip is actually the creation of a government institution. It is basically a smart card that holds electronic value and can transfer it security from one ship to another in fraction of seconds. Both Bitcoin and MintChip have one thing in common and that is that don’t need personal identification, as they are backed by physical currency.
The Future of Bitcoin
Some might think that Bitcoin is probably the best cryptocurrency available, but that’s not completely true as it has some limitations. To name one, a person’s digital fortune can be raised with just a computer crash, which is something you don’t want to happen. It is a fact the number of motions to accept cryptocurrencies has increased, but there is no denying the fact that they are still very much in the minority. In order to make cryptocurrencies more commonly used, they would have to first gain widespread acceptance among the customers.
Cryptocurrency that is aiming to become dimension furniture system might have to satisfy a widely divergent criteria. For instance, it will have to become mathematically complex just to avoid fraud and hacking attacks, but it has to be easy for consumers to understand, it will have to be decentralized but with adequate consumer safeguards and protection, and last but certainly not the least, it should preserve user anonymity without being conduit for a tax evasion.
Should you invest in cryptocurrency?
If you are planning on investing in cryptocurrency, then you will have to treat your investment just like any other highly speculative venture. The reason being, cryptocurrency as we know is a risky peace of concept, which means that you might end up with risk of losing most of your investment.