What Will Happen To Bitcoin In The Next Decade
When Bitcoin was introduced to the world over a decade ago, it was supposed to be a revolution in the finance ecosystem. But that revolution has hardly come to pass. The cryptocurrencys tumultuous first decade has been marked by scandals, missteps, and wild price swings. After achieving a record high price of more than $63,000 in April 2021, BTC has fallen by 24% to nearly $48,000 as of Aug. 30, 2021.
But investors and the cryptocurrencys enthusiasts have doubled down on their optimism regarding its future. As such, the coming decade could prove pivotal to Bitcoin and to cryptocurrencies more broadly.
Institutional Investors Get In The Game
Although trade figures for individual investors are down in many cases, institutions are climbing on board in a significant way for the first time. Institutional investors allow for significantly larger trading volumes than most individual investors, meaning that even if fewer trading partners are transacting in the digital currency space, the industry can still sustain itself.
There are several potential developments projected to take place in 2020 and 2021 that could significantly impact institutional participation in the digital currency market. If crypto is floated on the Nasdaq or a similar exchange, for example, it will immediately get a boost in reputationand likely, value.
When Was The Last Major Crypto Crash
In June, the Chinese Government cracked down on considerable crypto mining operations taking place in the Sichuan province and demanded that Chinese banks and payment channels stop supporting decentralised and anonymous crypto transactions.
This saw Bitcoin prices tumble to below $30,000 in a dramatic plummet from its soaring success.
The cryptocurrency has continued to rise and fall as other global administrations and regulators mull legislation to curb increased crypto activity often attributed to laundering and crime.
Following the Chinese states move, countries like South Korea also pledged to tackle the rise in money laundering taking place via cryptocurrency, while the Metropolitan Police announced that it had successfully closed in on a huge UK cryptocurrency money-laundering operation.
July saw the Met seize a cryptocurrency operation valued at £180million in the UKs largest cryptocurrency seizure to date.
In turn, cryptocurrency exchange platforms such as Binance have been feeling the heat across the world as regulators and governments have started to pay close attention to the operations of such platforms in the wake of the global crackdown on crypto.
The result of this saw Bitcoins highest prices sliced in half in June, with the coin struggling to break out of the low to mid $30k price range until it received a welcome boost from Tesla founder Elon Musk in his appearance at major Bitcoin conference in July.
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What Are The Prices Of Ethereum Shiba Inu And Cardano Today
With cryptocurrencies coins tending to move in tandem with Bitcoin, Ethereum was trading down nearly 5% on the last 24 hours at $4,002.92 or £2,916.73 at 11.20am on Wednesday.
A popular cryptocurrency synonymous with the rising crypto trend of NFTs, Ethereum has an all time high of $4,379.11, reached in Mays cryptocurrency boom, but it has struggled to return to this peak since despite coming close in recent crypto price surges this month.
The hype surrounding popular memecoin Dogecoin had appeared to diminish recently as new altcoins took centre stage.
Shiba Inu coin is trading up at approximately £0.00004 today and has smashed through multiple record highs in the last four days after surging by up to 50% on Sunday 24 October.
Dogecoin, meanwhile, was trading down 13% on the last 24 hours at $0.232605 on Wednesday.
Meanwhile, Cardano prices are fluctuating around $2.14 , XRP Ripple was down 9.89% at
$1.01 and Solana at $188.09 as of 11.25am on Wednesday.
XRP and Stellar were down almost eight percent and six percent respectively on the last 24 hours.
So Whats Going To Happen When All Bitcoins Are Mined
When Satoshi created the bitcoin blockchain 12 years ago, he set it up around the principle of controlled supply. One of the more important rules he made was that miners will mine 21 million bitcoins only.
This means that only a fixed number of newly minted bitcoins can be mined each year until a total of 21 million coins have been minted.
After all the bitcoins are mined , there wont be more coins available to mine. The only way there can be more bitcoins to mine is if the cryptocurrencys protocol is changed and to allow for an additional supply.
However, there havent been any confirmed plans to raise its supply limit twelve years after it was created. With that, we can safely assume that bitcoins maximum supply cap will remain unchanged at 21 million coins.
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Why Is The Crypto Market Down
Chinas crackdown on cryptos comes days after Musks shock announcement.
Musks decision signifies a sharp u-turn for Tesla who only started accepting Bitcoin as payment for its services in February 2021.
It came after the electric car company bought $1.5b of Bitcoin shares, which in turn sent the market price of both the crypto and Tesla soaring.
Yet the impact on the environment of Bitcoin mining – a complicated process of minting new digital tokens – has seen Tesla withdraw this option for customers.
The billionaire entrepreneur said: We are concerned about rapidly increasing use of fossil fuel for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
Musk reaffirmed his belief that cryptocurrency has a promising future but that it cannot come at great cost to the environment, in his Twitter post.
Musk has been a long-time advocate of cryptocurrencies and the Tesla decision was felt across the market, with other digital tokens going down in price.
Bitcoins Risks And Price Action
Like any other asset, bitcoin prices can vary. Since the notion of cryptocurrencies is still fresh as opposed to traditional assets, bitcoins value has experienced wild swings in price in its 12-year history.
In 2021, bitcoin has swung between $30,000 and $65,000, making it one of the rockiest periods that the cryptocurrency has witnessed in its brief life.
As it hovers around $56,000, crypto experts and market analysts appear divided over whether the digital coin is still in the middle of a record-breaking bull run or at the start of a bear market.
Even if youre putting your money in generally secure areas like the stock market, there will always be some risks youre likely to face. But being a successful trader necessitates taking knowledgeable and measured risks, which is also true in the case of cryptocurrencies including bitcoin.
It is important to lessen the risks associated with trading bitcoin by taking a cautious and smart approach about how you invest in the cryptocurrency and conducting a comprehensive research.
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Which Crypto Prices Are Down
Bitcoin wasnt the only cryptocurrency to feel the initial effects, with the rest of the top 10 all experiencing dips in value.
Dogecoin, which was initially set up as a joke in 2012 before seeing its shares skyrocket, has faced the worst of it with significant double digit drops due to Chinas crackdown.
Musks influence cannot be underestimated as, even though the likes of PayPal, Mastercard and have backed cryptos, the Tesla announcement still rocked the market.
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What Are The Market Implications
A minority think that the flippening could have a significant impact. At Token2049, crypto hedge fund manager Eric Wall explained that if ether overtakes bitcoin, investors could start to lose faith that they’ve created anything that resembles ‘digital gold’, especially if ethereum is then threatened by another blockchain.
“What happens if ethereum gets replaced by something else? If that’s the case, then how can we even describe these assets as a store of value? How can we even say that we’ve invented a digital form of gold?” Wall said.
This is a perspective that Thorn’s heard within the community. There’s a view that if a flippening were to happen it could permanently unsettle the market.
“I don’t really buy this theory either,” Thorn said. “If the flippening happens, there’ll be some rejoicing by ethereum supporters and chirping by the two communities, and then both the bitcoin and ethereum blockchains will simply continue to produce blocks unaffected by the speculation.”
In the long-term though, most crypto investors don’t see significant market implications from the flippening.
It could drive more investors to spend time understanding ethereum’s real-world potential at a quicker pace, Ting said. In the short-term, a multi-chain environment may offer investors more arbitrage opportunities, he added.
“I view the two as distinct, and whether they ‘battle’ for the top spot on CoinMarketCap is more noise than signal,” Thorn said.
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What Is Happening To Bitcoin
Bitcoin, and those invested in it, has been on a rollercoaster ride of late, rising and falling sharply on the back of a number of news stories.
To summarise, these dramatic ups and downs over the past few months:
- 16 December 2020: Price hits $20,000 per coin for the first time
- 13 April2021: Value hits a record high of $63,375
- 22 June 2021: Falls to under $30,000 for the first time in 5 months
- 2 August2021: Bitcoin rallies to its highest level since May at $40,000
- 23 August 2021: Price returns to above the $50,000 mark
So what is happening? Well, lots.
Reduction Of Internation Money Transfer Costs
Everyone who has sent money from one nation to another knows that it incurs high costs. It doesnt matter if you use Paypal or bank transfer, you will pay a premium price. But not if you use cryptocurrencies.
If you pay with XRP, it will be as if you never paid any transaction fee at all, considering that it costs a fraction of a cent.
Now, the global remittance industry consists mostly of immigrants from developing countries that are working in developed countries and sending money to their families back home. Remittances totaled around $601 billion in year 2015 alone.
And not only are the costs improved, but the time and effort involved as well. Instead of taking three days, it would only take a few seconds or minutes. If we take scaling solutions like the lightning network into account, it would be near instant.
How can crypto not be the future?
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How Much Is Bitcoin Worth Today
On Wednesday 27 October, Bitcoins price was trading down by roughly 6.5% on the last 24 hours falling from a 24 hour high of $63,064 to $58,500 as of 10.45 this morning.
At the time of writing, Bitcoins value was fluctuating at around $58,965.03, or £31,055.83 according to CoinDesk.
The Bitcoin dip could be a sign of traders pulling back from new all-time highs for the cryptocurrency and hedging their bets as market analysts project that Bitcoin could reach a landmark $100,000 threshold in the near future.
Crypto data aggregation platform, CoinMarketCap, recorded a near-40% increase in Bitcoins trading volume over the last 24 hours as of 11.15am, with the cryptocurrencys trading volume at $43,474,067,360.
Remember That Bitcoin And Other Cryptos Are Volatile
For those who have been investing in cryptocurrencies for years, dramatic gains and losses are nothing new. For example, bitcoin recorded a previous record high of nearly $20,000 in December 2017, but by December 2018 was trading below $3,500.
As bitcoin gains adoption, “the up moves and down moves can be breathtaking. Taking the long-term view puts these moves in perspective, says Greg King, founder and CEO of Osprey Funds, an investment firm specializing in digital assets.
For example, even though bitcoin was down 50% in April through May of this year, it is up 25% from those lows and still up 100% from Thanksgiving last year.
For seasoned bitcoin investors, the lower prices were welcome. Then, you would actually see the drop of value in bitcoin as an opportunity to purchase, Danial says.
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Is Cryptocurrency Going To Crash : The Bitcoin Crash Of 2021 Compared To Past Sell Offs : Cryptocurrency Has Become Popular In The Last Decade In Particular With Bitcoin Becoming The Most Widely Tracked Alternative Currency
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It Empowers The Common People
Most crypto proponents believe that the technologys greatest benefit to the world is to bank the unbanked and to serve the underserved. This means that it has more applications in developing countries than in developed countries, in this aspect.
Places like Bangladesh, Thailand, the Philippines, India, most countries in Africa, and many more. These nations need crypto the most.
Now how can crypto technology help?
All these solutions apply to almost every state in the world, although countries with more oppressive regimes will benefit the most.
Many Countries Will Accept Crypto
This trend started a couple of years ago and it will probably continue in the future. Countries with strongest economies such as Japan, the USA, and China accepted crypto-based payments. The same counts for several different European countries. Many countries around the world will need to adapt to current changes. They cant stick to flat currencies when more and more people are accepting the digital ones. You already know very well what happens when the demand for a certain product/service/currency grows. This move will also positively influence the value of different digital assets.
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Middlemen Are Unnecessary Costs
This is one of the main selling-points of crypto as stated in the Bitcoin whitepaper more than a decade ago. It was primarily designed for enabling online transactions without the need for third parties to oversee payments between users.
As everyone knows, third-parties take a cut from every transaction that go through them. Yet, they are so engrained in the global landscape that we tend to think that they are essential for commerce.
Capture Gains Bigger Than Bitcoin
Institutional money has been a primary force in driving the stock market to new highs. And now some of that money has started moving into crypto.
Imagine if every single investment firm on the planet began to diversify to include Bitcoin and other digital assets. If they put 2%, 3%, or 5% of their capital into coins… it would do nothing less than trigger the biggest crypto inflow ever, period.
We’ve found a way to make the most of this rare opportunity.
Nearly every time Bitcoin goes up, certain members of this small class of little-known cryptos jump even higher 142% in 12 days… 330% in 82 days… 273% in 14 days.
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Possible Crypto Etf Approval
SEC Chairman Gensler recently hinted that investors may soon have access to a cryptocurrency ETF, which would represent a new and more conventional way to invest in crypto. A cryptocurrency ETF would allow investors to buy cryptocurrency directly from traditional investment brokerages they may already have accounts with, like Fidelity or Vanguard.
We do it in the equity market, we do it in the bond markets, people might want it here, Gensler said at the Aspen Security Forum earlier this month, while also acknowledging there have already been filings for crypto ETFs with his agency.
ETF approval has been in consideration by the SEC multiple times over the past few years, but none have yet been greenlighted as in other regions, like Canada and the EU.
I was anticipating that approval would happen before the end of 2021. Im still hopeful for that, says Abner. Theres obviously a lot of people looking at it with the other regulation that is being introduced. That could potentially slow things down, but I think theres still a possibility you could see some approval, either at the end of this year, or at least early in 2022.
St Century Financial Crises
Lets take a look at some of the worst recent economic screw-ups made by either governments, banks, or both. Take note that this list doesnt include any Communist or Dictatorial governments. Most of these countries, at the very least, have democratic tendencies.
So I am being very conservative in my judgment. Even Venezuela, which is experiencing one of the most dreadful economic crises in history, is excluded since it has an authoritarian regime.
Ive also excluded the Dot Com Bubble in 2001 because that was caused by market exuberance in the early internet space. It was the retail investors fault, not the banks and governments.
- Turkish economic crisis 20002001
- Early 2000s recession 2000
- Argentine Great Depression 19982002
- Icelandic financial crisis 2008-2011
- Great Financial Crisis 20072008 Prelude to Bitcoin release
- European debt crisis 2010
- Russian financial crisis
- Greek government-debt crisis 2010-2018
- Turkish currency and debt crisis, 2018-present
Its only been 20 years yet you have all these failures stacking up. And its far from over. Many economists predict that an economic recession is long overdue. And that its much worse than ever before.
How long are we going to trust the traditional financial system? Only crypto can end this. This is why cryptocurrency is the future.
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