Bitcoin is a cryptocurrency that has been in the news lately because of its ever-increasing value. What does this mean for Bitcoin? How long will it continue to grow and be successful before it inevitably dies out? This post will discuss the near future for one of the most popular cryptocurrencies on the market today.
1. What is Bitcoin, and how does it work?
It is a cryptocurrency that was created in 2009 by Satoshi Nakamoto. “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution” (Nakamoto). It works on Blockchain technology, which can be thought of as an open ledger for all Bitcoin transactions. All of the information on this ledger is public, and anyone can access it.
Bitcoin miners are responsible for validating all Bitcoin transactions. For their work, they are rewarded with new ones as more people become interested in them, mining increases, which means that more computing power is needed to mine new Bitcoins.
The total number of Bitcoins that will ever be created is 21 million. This scarcity is part of what makes them so valuable.
Its value has skyrocketed in recent years, which is what makes it interesting to talk about its future. Currently, one is worth over $50,000 U.S., but this was not always the case for this cryptocurrency. In fact, when it first launched in 2009, there were no bitcoins traded at all. They did not even exist and were only conceptualized by Satoshi Nakamoto. It was created in response to the 2008 housing crisis, where financial institutions failed and lost trillions of dollars.
Bitcoin’s value began at $0.003 per it when it first launched but quickly rose to $0.08 per bitcoin in the first year. This was partly because of it being mentioned on Slashdot, a popular tech website at the time, and the resulting media attention that took place after this mention. In 2010, it rose to $0.14 per bitcoin, then fell back to just $0.07 per it in 2011.
It has continuously risen since then, but it wasn’t until 2013 that its value really began to increase exponentially. In Nov of this year, the price for one was $68,000 U.S., which is an incredible rise considering how low Bitcoin’s starting price had been.
This meteoric rise has caused some people to invest in it, while others are warning of an impending crash. So, what will happen to Bitcoin’s value in the future?
2. How to buy bitcoins
If you want to buy bitcoins, there are a few different ways to do this. You can either mine for them yourself, which is becoming more difficult as the number of them in circulation increases, or you can purchase them from an exchange. Exchanges are websites where people can buy and sell it and other cryptocurrencies. There are a few different exchanges where you can do this at INX trading platform, view more on inx.co.
Purchasing it is the simpler option and has more liquidity than mining for it yourself because of how difficult it has become to mine Bitcoins (Brito et al.). One drawback is that when purchasing them through an exchange, you don’t actually own them until your transaction goes through, which can take a few days.
Another way to purchase them is through a Bitcoin ATM. These machines allow you to buy and sell them for cash. However, there are only about 1800 of these machines in the world, and they can be difficult to find (CoinATMRadar).
Finally, you can also earn them by completing tasks or through a process called mining. Mining is when you use your computer to solve complicated mathematical problems to validate Bitcoin transactions and earn new ones. This process has become more difficult as the number of them in circulation has increased, so it is not recommended for novice users.
3. The future of bitcoin
There are a lot of possible outcomes for Bitcoin, but it is difficult to say which one will happen.
- One possibility is that the price of bitcoins may continue to rise as more people become interested in cryptocurrencies and invest money into them. This would likely lead to an increase in media coverage on cryptocurrency, leading to more people becoming interested in them.
- Another possibility is that the price of them may drop again due to a lack of media attention, which could cause other cryptocurrencies to rise and take their place. This would put Bitcoin at an even bigger disadvantage because its current value relies on being one of few top coins available.
- A third possibility is that the price may plateau and remain much more stable than it currently is. This would be beneficial in providing a reliable store of value but could also limit its growth potential.
The future for Bitcoin looks bright so far, but there are still many unanswered questions about where it will go in the future.
4. Thoughts on the future of bitcoin from experts in the field
“Bitcoin is digital gold. It’s hard to mine, but it’s valuable because it’s scarce.”
– Aaron Lasher, Chief Marketing Officer at Breadwallet
“It will likely hit $250,000 by 2024…I would be very surprised if it doesn’t reach $500,000 by the end of 2024.”
– Bobby Lee, CEO of BTCC Exchange
“In terms of price per bitcoin, we’ll continue to see an expansion in the number and value of merchants accepting it.”
– Ryan Taylor, CEO at Dash Core Group Inc.
“I think it will become a part of our everyday lives…people are going to use it in a variety of ways.”
– Tyler Winklevoss, Co-founder at Gemini Exchange
“Bitcoin is going to continue being volatile…[but] from when we first started this company [in 2013], the trends have been that it has been following. And so if you look at every one of these bubbles or spikes, they’ve all been followed by a very long, slow period of deflation and consolidation.”
– Jeremy Liew, Partner at Lightspeed Venture Partners.
Summary:
In conclusion, it is still in its early stages, and there are many possibilities for its future. While some experts believe that it will reach $250,000 or even $500,000 in value by 2024, others believe that its price will continue to be volatile, and it may not have the same widespread appeal as other cryptocurrencies. Bitcoin is a digital currency that has seen a lot of growth in recent years. There are many possibilities for its future, including continued price increases, a drop in value, or stabilization. No one can say for sure what will happen, but it is definitely worth keeping an eye on.
