A cryptocurrency is a form of digital currency. It comes with a production and handling which uses advanced encryption techniques, also known as cryptography.
With the launch of Bitcoin in 2009, cryptocurrency made a transition from being an academic notion to a virtual reality. While Bitcoin grew in popularity in subsequent years, it drew major investors and media interest in April 2013.
In recent years, cryptocurrency has become a global trend. Although, there are still a lot of things people need to discover about this evolving technology.
At its highest point, Bitcoin reigned a market value of more than $2 billion. However, 50% plunged up immediately after triggering a spark of a raging debate about the future of cryptocurrencies.
So, with these alternative digital currencies, will they overtake the usual currencies and become as common as euros and dollars someday? Or, are these cryptos just a small light that will soon flame out? What kind of future awaits for cryptocurrencies?
Some economic analysts believe that institutional money will soon enter the crypto market. That will cause a significant shift in the market. Moreover, there is a chance that crypto will be part of the Nasdaq list. It may further add legitimacy to the blockchain and its uses as an alternative to the usual currencies.
Other groups of analysts believe that what cryptocurrencies need is a confirmed ETF. An ETF would undoubtedly make it easier for consumers to invest in Bitcoin. Although, the desire to invest in cryptocurrency may be there, which might not be produced automatically by a fund.
The reality about unsafe systems
Supporters of Bitcoin and other cryptocurrencies assert a certain fact. The fact concerns these financial platforms being fundamentally unreliable, as they do not work together with the government.
At certain times, they claim that Bitcoin is preferred to traditional currencies. It’s preferred since it’s not reliant on any government institute such as the US federal government. Regardless of what you stand on, whether it’s a good or bad thing, it’s still not totally accurate.
To be fair, cryptocurrency isn’t entirely trustless. They continue to rely on the technology that powers cryptos such as Bitcoin, much of that which is in China. The Chinese government could possibly alter cryptocurrencies by forcing on the data miners who run them.
Bitcoin’s future outlook
The subject of almost every yearly debate is the future outlook of Bitcoin.
BTC is also renowned as ‘gold’ in the digital currency. However, unlike physical gold, the usage of Bitcoin comes handy for only a limited number of transactions, transactions that are applicable only on phone, tablet, computer, and such. This makes it more susceptible to a sudden drop. In addition to that, the cryptocurrency’s energy-intensive verification method is “much less efficient” than some systems. The systems mentioned highly rely on a trusted central bank.
The advancement of cryptocurrencies has spurred a debate about their future. Despite its recent challenges, BTC’s popularity made a great impact on the creation of alternative cryptos. These cryptos include ETH, BNB, Litecoin, Ripple, and DOGE.
With that being said, it’ll depend on BTC’s success or failure. The success or failure in coping up with the challenges will determine the fortunes of other cryptos in the market.