When Bitcoin first arrived in 2009, through the hands of a pseudo personality named Satoshi Nakamoto, it took the market by storm. People, especially investors, started speculating about a new cryptocurrency that landed in the market. The limited availability of 21 million also raised a few eyebrows. Slowly people began taking a chance, and investors started allotting some of their assets with incredible platforms like Bitiq.
Bitcoin emerged as the decade’s most famous cryptocurrency worldwide, with numerous people craving to get their hands on at least one coin. As of 2018, more than 18 million coins were already mined by the Bitcoin miners, thus leaving only a few up for grabs. This rapid mining and ever-increasing demand made Bitcoin one of the hottest commodities in the market.
Now, as the coins are on the way to being over, the fate of Bitcoin is under high speculation. Investors are in analytical thought concerning the future holds for Bitcoin and the return on investments they can expect. While a few skeptical people predict that Bitcoin will collapse soon, some investors are hopeful that Bitcoin might be the primary currency around the globe in the coming future. The analysis concerning Bitcoin had a broader perspective. This digital currency started as a mode of payment, but the investors considered it a forum for investment. The primary debate concerning Bitcoin is whether it will be just another financial option for the people or whether it will act as a replacement for the current system.
Predictions concerning the future of Bitcoins
This year Bitcoin witnessed a sudden slump in its prices and was at the end of fierce criticism. However, the investors believe the future is bright for Bitcoin. Here are some predictions concerning how Bitcoin will appear in the future.
Bitcoin sustains the tides of time as Digital Gold
The host of the podcast “What Bitcoin Did,” Peter McCormack, stated that bitcoin turning into digital gold will continue the trend. He predicts that it is almost sure that Bitcoin will be a digital gold concerning the fact it is performing, the way people deal with it, and how the entire networks witness growth. You will get to notice Bitcoin as a part of sovereign wealth funds, pension funds, and government equity funds as per predictions.
Some of the experts consider that Bitcoin will help reduce the margin between the have and have nots. The rate of inflation in emerging countries will eventually go down if they start using Bitcoins. They predict that the number of Bitcoin users will grow to 1 billion by 2030.
Various regulations suffocate Bitcoin’s reach
Countries like India and Nigeria are already putting restrictions on Bitcoin. However, Bitcoin analyst Jason Williams tends to refute that it will affect the regulation of Bitcoin around the world. He believes if one country bans it or puts restrictions on it, it is possible to shift it to another country.
The fluidity in the global trade structure tends to overdo any such individual country restrictions and keeps the demand on the rise. If a few countries announce prohibitions, its availability will be scarce. Thus the need will rise by manifolds.
However, there is a sustaining fear concerning the stoppage of Bitcoin. If a global regulation comes into motion, with all the leaders worldwide reflecting a consensus regarding the limitations of Bitcoin, It will be huge trouble. Bitcoin will eventually go extinct owing to such draconian measures.
Bitcoin as the reserve currency on the internet
Such a scenario will reflect a situation of compromise. Anthony Pompliano states that a lot of people, as well as investors, are skeptical about bitcoin turning into a global reserve currency. Conversely, they consider Bitcoin becoming the reserve currency on the internet as a possibility. When you decide on buying anything over the internet, you use some button or QR code for payment. Whether the underlying currency is a dollar, rupee or Bitcoin will not be a point of concern as the user experience will be similar.
The Internet reflects lesser transactional issues; thus, no problem arrives. However, transactions around the various platforms differ. There is a high probability of Bitcoin becoming the common reserve currency on the internet in such a scenario. It will allow the global boundaries to converge, thus allowing the traders to deal with foreign clients from around the globe.
The problem of two Bitcoin
Gladstein from the Human Rights Foundation states that restricting bitcoin is possible. The various governments around the world can use their shrewd brains to ensure its stoppage with time. The government can refrain from imposing a direct prohibition but provide a slow diversion of investors from the Crypto exchanges. They can impose various restrictions that do not allow the investors to withdraw their returns. Just imagine if the users are not able to access their bitcoins in the different crypto exchanges.
As a result of this, Bitcoin gets divided into two types:
- The regular Bitcoins got frozen in the various crypto exchanges as a result of government directions.
- The upheaval of the new form of Bitcoins in the black market is known as Black market Bitcoin. Black market Bitcoin consists of all the Bitcoins that are still loose or available for mining.
The price of bitcoin will soar in the black market owing to its limited availability. Experts predict that such situations are unlikely to happen, considering the legal hurdles that the government has to face and lobbying by the blockchain community.
Imposition of taxes on Bitcoin
Gladstein claims that this is the lowest effort for creating friction that the government can do concerning Bitcoins. However, such actions from the government should not be in light of consideration. Such light measures can lead to massive discouragement. Treasury secretariat Janet Yellen already brought forward the idea of bringing Bitcoin gains under the banner of tax. If such tax regimes come into force, the investors will have to pay a considerable amount of taxes for the profits they make via Bitcoins.
Such taxation rules will put the investors in great difficulty, especially those who wish to hold their bitcoins, waiting for the tide to turn in their favor. It would also discourage multinational giants like Tesla and Amazon from accepting Bitcoins as a mode of payment. Exchanging it would make them lose their funds as taxes. Bitcoin has a high value, but regulations can mellow it down as well.
However, such a situation is close to impossible considering the world system in place. With the countries being democratic, the people who hold bitcoins and the multinational firms can voice strong protests against such draconian laws. Ultimately the government has to give up. On the other hand, the governments can also compete against each other to establish the best crypto hub in their geographical territory.
Bitcoin as a currency to buy coffee and daily essentials
Many experts draw consensus regarding that Bitcoin has to turn into an alternative for digital gold before succeeding as digital cash. Bitcoin is also a mode of payment for transactions between countries and global commerce. Nations that face serious impediments with financial constraints receive remittances and loans from other countries and world organizations in the form of Bitcoins.
Some employers also use Bitcoins to pay their employees their dues and salaries. However, such use of Bitcoin still accounts for the minimum. Gladstein says that the fee for Bitcoin mining will soar sky-high considering the limited number of coins and passing the time. However, the volatility of Bitcoin and its prices makes it a difficult nut to crack. People won’t just repose their faith right away.
A sudden break in the network leading to a massive crash
No hacker could still extend their arms on Bitcoin. The web is the most secured and unbreachable as of now. What if someday the security is in a position of compromise? Gladstein states that the requirement of machinery and pieces of equipment that any organization or government needs is exceptionally high. They would have to let the cash flow like water; thus, such situations are less likely to happen. The shortage of semiconductor chips worldwide and the princely cost of at least $5 million is unthinkable for any organization to spend.
When we talk about quantum hacking, the investors might feel a little threatened. However, as the hacking mechanism becomes more robust, the protective measure and security cover of Bitcoin Blockchain becomes even more substantial.
Bitcoin defeats Fiat to become the world currency
Some cryptocurrency experts feel that Bitcoin can topple Fiat shortly and become the new world currency. Experts like Jason Williams just talk about Bitcoin becoming the reserve currency for the world. He feels that Bitcoin can raise $5 million by 2030 but cannot replace Fiat at all. Fiat will remain at the top owing to its flexibility and facility for easier transactions.
Above are just some of the significant predictions that experts have made. There are numerous other predictions concerning how Bitcoins can perform in the future. However, we can witness here that Bitcoin will have a long life due to its excitement triggers and demand.