The cryptocurrency market is filled with a lot of uncertainties, that is why no one can give you an outright yes or no if Bitcoin will die in a few years from now. However, a study of its concept, underlying technology, and rate of adoption, can help you decide if this digital asset can stand the test of time.
Bitcoin as at press time has a market capitalization of $71 billion and with this, it has over 50 percent influence on the overall market cap of cryptocurrencies. In December 2017, that value was around $320 billion before its sharp decline. Therefore, this a virtual asset that has received a lot of attention more than any other.
How then can you decide if Bitcoin will still be here a few years from now? It all boils down to its technology, adoption, and influence.
Bitcoin’s Blockchain Technology Promises Decentralization
Most people love freedom, and that’s Bitcoin’s selling point. It provides the ability to have full control over your funds and how it is sent. These features have attracted individuals, institutions, and the government to the cryptocurrency space. The inability to manipulate transactions or change transaction data are some advancements in technology which the future needs.
Now that Bitcoin has covered that aspect, do you see it in the near future?
The anonymity brought about by Bitcoin transactions has been used to facilitate crime. No one can tell who made the transaction or where it came from and this has aided in money laundering. This has made several governments frown upon the virtual asset. At this point, one may not be too quick to answer the first question that was posed.
Bitcoin’s Rate of Adoption Screams Serious Business
We’ve seen a lot of companies adopt Bitcoin for payments and we expect that a lot more will do the same in the coming months. What could have triggered the sudden interest of these companies in Bitcoin? Do they see a future in it? Or are they just joining the hype? We doubt it’s the case of the latter.
Take, for instance, two multi-billion-dollar worth companies recently accepted Bitcoin. Why is it so? Here’s what we can tell you. Bitcoin allows money to be sent just about anywhere. All that is required, is the recipient’s wallet address. In comparison to banks, you’ll probably have to wait for 3 to 5 days if not more before your payments are delivered to a person in another country. Hey, you’ll argue that there are PayPal and the likes, but we’ve seen enough of PayPal freezing user funds to last us a lifetime.
That aside, countries like Turkey, Venezuela, and Zimbabwe in the face of their devaluing fiat currency and inflation have turned to Bitcoin. Institutions like Fidelity Investments and Bakkt are trying out products that will bring about institutional adoption of Bitcoin.
The heavy regulations by countries and the current mandatory tax levied on cryptocurrency traders might impact on the adoption rate of Bitcoin. Countries like India have even taken it one step further by closing a customer’s bank account found trading cryptocurrency.
How do Other People Feel About Bitcoin in a Few Years Time?
If you’re not going to take our word for it, then you can check out what these individuals have to say about Bitcoin. Elon Musk, PayPal’s co-founder said Bitcoin will replace fiat currency. Rahm Emanuel, Chicago’s Mayor is of the opinion that cryptocurrency adoption could be inevitable. Max Keiser believes Bitcoin will become the world’s next reserve currency.
So, will Bitcoin die out in the next five years?
Let’s just say it has died 345 times but won’t stay dead, and if it has made it this far since 2009, why won’t it be here in the next five years?