Expanding Investment And Payment Use
Nevertheless, as more companies adopt bitcoin as a method of payment, its value could stabilize. Major companies that already accept bitcoin include Microsoft, AT& T, Starbucks, PayPal and , although you must jump through a hoop or two to pay that way.
In addition, as more platforms make room for bitcoin trading, the market should expand among individual traders and investors. While Coinbase, Kraken and online investment firms like Robinhood and Webull all allow the purchase of cryptocurrency, big, traditional brokerages are just climbing onboard.
Goldman Sachs, for example, announced in April that it would give high-net-worth clients access to bitcoin and ethereum. Other brokerages, such as Schwab, Fidelity and TD Ameritrade, simply allow their clients exposure to the crypto market, although Fidelity will allow companies to allow their employees to invest up to 20% of their 401s in bitcoin, NBC News reported.
For the most part, however, these companies offer trading in coin trusts and exchange-traded funds that hold crypto assets.
Scenario : The Grand Flippening: Bitcoin Topples Fiat
Could bitcoin topple fiat by 2030, supplanting it as the worlds go-to currency?
Im only including this scenario as a reality check. Virtually everyone I spoke to including the bulliest of the bitcoin bulls considers this extremely unlikely. Youll be hard-pressed to find a more impassioned bitcoin bull than Jason Williams, whose Twitter handle is . He is confident bitcoin will eventually become a global reserve currency, and says, Its really easy for me to see a bitcoin of $1 million to $1.5 million by 2028, and I think its really easy for me to see a $5 million bitcoin by 2030, but even Williams doesnt see bitcoin completely replacing fiat by 2030.
Fiat is likely here to stay, at least in some capacity. In our lifetime, meaning for the next 60 to 100 years, I think there will always be fiat currency, and always corporate money, says Gladstein. I do think governments will always be able to issue debt and have fiat currency, but he adds that as bitcoin gains in prominence, their ability to control the world will be less.
The Uncertain Way Forward
Crypto has always been volatile, both in price and in consumers perception. Despite the explosion in recent years, what the future of cryptocurrency holds is still unclear.
For the average investor, for government regulators, and for those attempting to make crypto greener, this is a time of paradoxes to navigate. If one thing is certain, its that the market in 5 years time could be just as unrecognizable to us now as the market was 5 years ago.
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Looking To The Future
Aside from the criticism that stems from Proof-of-Works energy-intensive nature, questions have been raised concerning the longevity of the mining industry itself. After all, over 90 percent of bitcoins total supply has already been mined. With the block subsidy halving every four years , wont bitcoin have to see continual price appreciation for mining to remain profitable?
Well, yes. But thats exactly what miners are banking on. While there is only 10 percent of bitcoins pre-programmed fixed supply left to mine, mainstream investors have only recently begun to look seriously at the asset class, suggesting there is plenty of room for growth. Bitcoins absolute scarcity, security and decentralization continue to make it a desirable digital asset for buyers.
And what happens when the final block has been confirmed, the last ever bitcoin mined?
Bitcoin mining will become an asset strategy of many countries in the future, and those opposing it will only be sacrificing their own prosperity by reducing innovation as well as jobs and wealth creation, predicts RSKs Adrian Eidelman.
Whatever happens, cryptocurrencies and mining will likely be front and center in the coming months, not just in the the great energy debate, but also in the social and political debate of the peoples’ rights to access self-sovereign cryptocurrency, a debate the will continue to be openly and productively led by the industry.
Many Want Governments To Take A Back Seat
% who say they trust the following institutions most to lead the regulation of crypto
While this does not reflect well on consumer views of their government, it does bode well for brands. Building trust and credibility in the crypto space is, in the eyes of consumers, easier if youre not a government entity. Perhaps this reflects the anti-establishment ethos of cryptos early culture.
Either way, it certainly presents opportunities for brands in technology and related fields to become a trusted partner, educator, and safety net swooping in to fill the gap where governmental trust is lacking.
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New Crypto Rules Appear On The Horizon
Washington lawmakers sense that cryptocurrency is a big and important thing. But they are struggling, perceptibly, to understand it. It may only be a matter of time before crypto gets its “series of tubes” moment from a hapless representative out of their element.
In , executives from six cryptocurrency companies were called to testify before the House Financial Services Committee, where they discussed potential paths for future legislation. Lawmakers in the US have expressed interest in a range of topics — whether stablecoin issuers should be considered banks, when to tax cryptocurrency and how to craft functional rules in a highly technical and complex industry. This is tricky stuff. Creating the right standards will take time.
“I think there’s going to be a lot more conversations around crypto and blockchain,” said Dixon, one of the executives who testified before the House committee. Dixon previously testified on the issue of net neutrality before a House committee during her tenure at Mozilla in 2019 and harbors no illusions when it comes to regulating new technology. Some discourse will be positive and some will be negative, “but I just think that having these conversations, we’re going to see policymakers and regulators be more focused, and hopefully, more traditional businesses will be more focused on that.”
As the cryptocurrency industry grows up, it will continue to shift in ways we can’t yet imagine. But one thing is clear: Crypto will be a part of our future.
But Bitcoin Is A Technology That Evolves
Now lets think about Bitcoins past for a minute. The coin and its underlying technology — the blockchain — are only 10 years old. When the internet was 10 years old — the year was 1989. Do you remember the internet in 1989? I sure do.
To use the internet, I had to go through a modem connected to the phone line. It made horrible screeching noises, and no one could be using the phone at the same time. Remember this was before cell phones too — so disconnecting the only phone line in the house to use the internet was a big deal. It made my parents very upset.
All for what? Downloading a blurry picture that took ten minutes to load? No wonder the media at that time said the internet would never last. And they would have been entirely right — if the internet never improved. But it did. And now we stream Netflix on our cell phones.
Give Bitcoin some time.
Yes, I agree, as it is right now, it is not the best option to transfer value right now. But it is a new technology — and it improves continuously. The future of Bitcoin might just be as bright as the future of the internet in 1989.
*eToro Disclaimer: Your capital is at risk
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Scenario : Bitcoin Becomes The Internet’s Reserve Currency
This is something of a compromise scenario. A lot of people have a hard time wrapping their head around bitcoin becoming the global reserve currency, says Anthony Pompliano, or Pomp, as hes widely known in crypto circles, adding, But they see it as a much more viable path to simply be the reserve currency of the internet.
When you buy anything over the internet, says Pomp, from a user experience the underlying currency doesnt really make a difference. You click a button. Or you scan a QR code. The currency is irrelevant. Whether its dollars, RMB or bitcoin or anything else, its still the same user experience, says Pomp, adding that the internet has less transaction friction, but thats not necessarily the case in the analog world. Clicking to buy a book on Amazon is one thing buying a slice of pizza is something else.
So bitcoin could evolve into the internets natural currency. When you use something that has finite settlement like bitcoin, it allows for geographic-agnostic commerce in a digital environment, Pomp says. That would give local merchants some added upside: global customers. Since most merchants are already pivoting to reach a more global audience, Pomp says embracing bitcoin would help them skate where the puck is going.
Incorrect: Thomas Glucksmann $50000
Thomas Glucksmann, head of APAC business at Gatecoin, had seen regulation, the introduction of institutional capital, and technological advances like the Lightning Network as the main factors in rising cryptocurrency prices.
There is no reason why we couldnt see Bitcoin pushing $50,000 by December he said. Glucksmann also wrote that a possible element in market growth going forward could be the release of a cryptocurrency-based ETF, similar to when BTCs price shot up to $16,800 in Dec. 2017 after the CBOEs futures launch.
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Scenario : The Tax Man Cometh
This is the lightest touch the government could do to curb the use of bitcoin, says Gladstein. But even a light touch could be crippling. Lets say, for example, that U.S. citizens are forced to pay unrealized capital gains on bitcoin. Treasury Secretary Janet Yellen has floated the idea of an unrealized capital gains tax, so the idea has at least a tie to reality.
Such a tax would be gutting to all bitcoin HODLers, who patiently wait for their bitcoin to moon. And it might prevent the Teslas and Squares and MicroStrategys of the world from parking cash in bitcoin because suddenly they would bleed taxes. If this happens, their exodus from bitcoin could trigger a market crash, breed FUD on steroids and cause a systemic plunge in confidence.
Bitcoin is valuable because people believe it is valuable the inverse could also be true. In this scenario, the gold defenders and bitcoin skeptics like Peter Schiff who once said that bitcoin is a fools gold and anybody buying it is ultimately a fool could at long last be vindicated.
Gladstein considers it a long shot. Such a tax would be contested vigorously by the private sector and by individuals who own bitcoin, he says, adding that by some estimates more than 10% of Americans own BTC. This is a democracy, he says. Youre going to have this small but loud minority of people pestering congressmen across the nation to not do such a thing.
But Paying With Bitcoin Is Possible
I traveled around the world for 1 year — using only 1 Bitcoin. I survived.
Just like I told my grandpa, I can tell you first hand that I used my Bitcoin to buy burgers in Hong Kong, beers in Prague, nights in hostels in Cambodia, and more.
Adoption of new payment mechanisms takes time. Did you know that credit cards, for example, were first used in 1958 — but didnt see mass adoption until the mid-1970s? Thats almost 20 years for something almost everyone uses every day now.
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John Mcafees Bitcoin Price Prediction
Bitcoin is a real shitcoin, said McAfee antivirus creator John McAfee. He wrote that the future lies with altcoins in his Twitter account since they bypass the first cryptocurrency in technical specifications.
Whichever Bitcoin Maximalist came up with the term “Shitcoin” for all other coins Was brilliant.
Earlier, he abandoned his $1 million forecasts for Bitcoin, calling it a trick to attract users.
Bitcoin Will Never Be A Real Currency
There are limitations to bitcoin that it may or may never resolve.
We talked about its scalability . We discussed price manipulations and volatility.
These are significant drawbacks. Perhaps they are far too significant to be resolved.
In the end, its possible Bitcoin will not be widely adopted as an everyday buy your coffee with bitcoin type of currency.
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Why 2021 Was A Good Year For Bitcoin
Over 2021, bitcoin enjoyed a steep rise in its market value. At the start of the year, a single coin was valued at $32,000, and by April that number had doubled. Traders were optimistic that wider acceptance of bitcoin by merchants and big banks would support the price.
However, the promise outran the reality there was still no way to use bitcoin for much of anything except speculative, risky trading. A decline in the stock market in late 2021, and a fall in highly valued growth stocks, carried cryptocurrencies down as well. Bitcoin finished 2021 at about $47,300. As of June 24, 2022, bitcoin is selling for $21,145.
A Trio Of Motley Fool Contributors Discuss The Cryptocurrency Market And Bitcoin’s Place In It
Bitcoin has been an amazing investment. Its price has gone up 20-fold since 2018. Now a single coin will run you about $63,000. Bitcoin has become a new asset class. El Salvador now recognizes Bitcoin as a currency.
What does the future hold for this top dog in the cryptocurrency market? On this episode of “The 5,” Motley Fool contributors Travis Hoium, Jason Hall, and Taylor Carmichael discuss the future of Bitcoin. This segment was recorded on Oct 21.
Jason Hall: What is the ultimate future for Bitcoin?
Travis Hoium: I’ll preface this by saying, this is an area where I think we’re looking at cryptocurrency like the Internet was in 1998, 1999, where there is huge potential and we’re starting to see what that potential might look like.
Jason Hall: When nobody really knew what it was.
Jason Hall: Taylor.
Jason Hall: When the Fool started off, literally on AOL, it was on AOL.
10 stocks we like better than BitcoinWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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The Most Trending Findings
Browse our collection of the most thorough Crypto Exchange related articles, guides & tutorials. Always be in the know & make informed decisions!
- The various use cases of Bitcoin.
- Bitcoins developers efforts to scale the network.
- The Future of Bitcoin. I looked at both negative BTC price prediction and positive ones.
- My own thoughts on the future of Bitcoin.
I really hope you learned something from this article. It covers many of the most important concepts in cryptocurrency. For many getting into space, Bitcoin might seem dated and like old news. Its easy for them to forget the crucial aspects that make a digital currency value in the first place.
Bitcoin was created as a reaction to the cruel and destructive practices of central bankers during the last financial crash. It is much more than a way to ping money around the globe or a get rich quick scheme.
Anyway, now that were all done, what do you think the future of Bitcoin will be? Wed love to hear your thoughts. If you wish to learn more, read this complete Bitcoin prediction guide.
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Could Bitcoin Become A Global Currency Anchor
No. The system is neither fast enough nor transparent enough. Moreover, creating a global currency anchor is a highly political process. It would enormously influence the way the international financial system is organized and could place restrictions on national monetary sovereignty. The stakes are extremely high. Policy makers would never allow an untransparent system like Bitcoin to fulfill that role.
That doesn’t diminish the fact that intelligently designed crypto currencies may well play a role here. In 2019, for example, a consortium led by Facebook announced plans for a new digital currency, the Libra . There are many differences between Libra/Diem and Bitcoin, and of course the most important is that the Diem does not exist yet. But the design of the Diem is economically very sound. It is flexible, the consortium behind the Diem wants to cooperate with supervisors to prevent use of the Diem for illegal transactions and the Diem is a so-called stablecoin. This means that all Diem are in principle backed by high-quality, highly liquid assets. It all remains to be seen, but the authorities immediately recognized that the Diem has the potential to become much bigger than Bitcoin, thus affecting the monetary autonomy of central banks. It is probably the main reason why central banks have greatly increased their efforts to introduce CBDC in recent years.
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