Cryptocurrency is currently one of the most trending hot topics dominating the entire world. With the increasing growth of Bitcoins, Etherum and other blockchain operated crypto coins, everyone has one question in mind- “Will it dominate the financial currency in future?”. The question is specially directed towards Bitcoin as it is currently the king of the crypto world.
Bitcoin is known to be invented by Satoshi Nakamoto but, the person behind this name is completely a mystery. Neither anyone has seen it nor anybody is sure whether it’s an individual person or an entire financial unit running under this name. Hence a big question always encircles Bitcoin that ‘Whether its real money or just an illusion?’. Also, what future it holds?
What is Bitcoin
Bitcoin is a digital currency based on the concept of P2P technology. The Blockchain operated currency uses a distributed ledger system and helps to execute financial transactions without any central authority in between. It verifies transactions through nodes using cryptography and records them in a public distributed ledger system.
The coins are created by mining through complex algorithms and demands to be completely untraceable. It contradicts the centrally authorized fiat currency concept.
Future of Bitcoin
In the case of general fiat currency, the amount of how much can be received and the value is decided by each nation’s bank. Also, it has to be according to the monetary principles and objects of each country. But, in the case of Bitcoin, there are no such rules. There is no authority to regulate it and hence it price rates keep fluctuating based on the trading values. Here it lacks maximum security and makes it future debatable.
While some researchers believe Bitcoin’s market capitalization will soar to trillions in the next 5 years, some believe the bubble will collapse shortly.
The positive side of Bitcoin is – it has lower transaction fees, easy for payments and trading, easy portability, and convenience. Also in terms of security, it leads as it is difficult to hack Bitcoin transactions easily like centralized online transactions.
If you consider the security aspect, Bitcoin’s decentralization is definitely beneficial to reduce online frauds. But, then it is not 100% percent secured. Bitcoin speaks of transaction anonymity. In reality, though hackers cannot track each transaction between a sender and receiver but, can definitely crack the spider web once they get hold of one transaction.
So, the process is difficult but, not impossible. According to experts, decentralization might be beneficial for a better world but, Bitcoin’s lacking stability and unauthorized source makes it the biggest risk factor for the financial world. The system is still new and due to high price volatility, it would be really difficult to meet future demands.
So, from the above scenario, it can be concluded that Bitcoin definitely has the potential to stay but yet not powerful enough to rule the world.