How would the future of Bitcoin look like?
The popularity of Bitcoin
Cryptocurrencies have become extremely popular among people who live out there in the world. It is now legally accepted in many parts of the world as a transaction medium. As a result, people tend to make payments with the help of cryptocurrencies such as Bitcoin. In the meantime, there are groups of individuals who have started investing their money on Bitcoin as well. The price associated with the digital currency is increasing at a rapid pace and people are provided with an ideal opportunity to purchase them and sell at a higher price after several years. This fact is not just applicable to Bitcoin, but also to many other digital currencies that exist in the world.
Bitcoin is pretty much similar to gold. In fact, you can find a large number of similarities in between gold and Bitcoin. Similar to gold, it is not possible to create Bitcoins in an arbitrary manner. Necessary steps will need to be carried forward in order to mine gold out of the ground. Likewise, Bitcoin will also have to be mined through digital methodologies.
What really happened to Bitcoin?
Now you must be wondering what really happened to Bitcoin. As you already know, the Bitcoin prices reached almost $20k back in the day. However, it came down rapidly.
Lack of institutional support can be considered as the main reason behind the sudden drop of Bitcoin prices. The governments didn’t go ahead and support Bitcoin at all. In the meantime, some of the financial institutions explored blockchain based solutions. However, they were not able to go forward with those initiatives without the backing up of the government.
There were some internal battles, which resulted in the drop of Bitcoin prices. The fight that broke out over Bitcoin cash can be considered as a perfect example for such an internal battle. Even though Bitcoin cash was built upon the same architecture, it gave life to a group of miners, who didn’t adhere to the initial system of Bitcoin. In addition, they forked a new Blockchain and decided to go on a new path on their own. Such issues created a massive negative impact on the progression of Bitcoin.
What would happen to the price of Bitcoin after 21 million mark?
When understanding the future of Bitcoin, it is also important to take a look at Bitcoin hard fork as well. As you already know, Bitcoin will reach a hard fork when it achieves 21 million mark. It is also important to take a look at what would happen to the price of Bitcoin after the 21 million mark is reached. Most of the people in today’s world tend to purchase Bitcoin as an investment. They strongly believe that the Bitcoin price would rise in future along with time. But what would happen if the Bitcoin prices fall after it reaches the 21 million mark?
In today’s world, it is not an easy task to see how Bitcoin would spread within the financial world. Due to the limited supply, some people predict that the price would increase along with time. In addition, we shouldn’t forget that there are inactive coins and stockpiles existing around the world as well. When we come to the 20 million capacity, we can expect that the founders of Bitcoin would take required steps to save the next 1 million, in order to cater the increasing financial demands.
Now you have a clear understanding on how the future of Bitcoin would look like. You can use this knowledge and go ahead with Bitcoin investments.