Does Bitcoin Have a Future?

Bitcoin was introduced by its mysterious creator, Santoshi Nakamoto in 2009. This decentralized form of cryptocurrency started slowly but gradually gained popularity.

Today, most people know about Bitcoin, and many even dreams of owning it; however, they aren’t aware of what it actually does, and how it can be used. A research study conducted by Morgan Stanley revealed that less than 1% of online transactions in 2017 were carried out using Bitcoin!

So, then what is all the hype about?

Cryptocurrency is very new but started creating interest and gaining usage by mid-2012. In fact, the first actual transaction using Bitcoin was made to buy some pizzas, back in 2010, when its cost was very low. Today, many celebs, CEOs, businessmen, financial investment companies, and start-ups have invested in Bitcoin’s multi-dollar cryptocurrency business.

Does Bitcoin really have a future?

This is uncertain and there are many reasons for it.

People do not know what it actually is.

Bitcoin has been surrounded by mystery since its inception. People are concerned their money will vanish. Only the uber-rich can take the plunge. Since they are rich, some money lost here or there, won’t really make much of a difference. Buying Bitcoins, adds to their high-profile and iconic status, which makes them even more popular by featuring them on the covers of top-rated magazines and social media. But for the normal investor, it is a questionable proposition! We bet, given the opportunity, you would invest in fiat currency.

Who is going to wait so long and waste time going through all the encryptions?

Bitcoin’s transaction time is also very high. The time taken by cryptocurrency to transact in the virtual world is sometimes more than 10 minutes, (or is in pending status) which is comparatively very high to the Swift System. Today people look for instant transfers. When it comes to financial transactions and making money, time is money. No ordinary person is interested in wasting time on some virtual currency, unless they have many people working for them who can take that time.

Another downside to Bitcoin is no third party involvement. A Bitcoin account user’s password is known only by the user. If the user forgets the password, there is no way to retrieve the money. In such a case, all the money will vanish. There will be no way of getting it back.

Another major drawback is the support factor! The older generation and the traditional mindset are really not much in its favor. Bitcoins are taken as a fashion symbol and gimmick by cyber-techies. It hasn’t made much of a difference for the older generation and the ordinary person.

Another negative is its performance on the stock market. Its value plummeted badly in 2018.

These are some of the reasons hampering Bitcoin. However, there is another side.

Market analysts say that Bitcoin will be the ruling coin and its market price will surge in the coming months and years. The top crypto influencers feel that a bull run will happen sooner rather than later, and understanding the Bitcoin graph will tell you when. On the other hand, there are a few experts who doubt that and forecast it will eventually become $0. The reason being that Bitcoin’s old format will become too primitive to handle. There is much speculation about its survival.

What happens when all the 21 million coins are mined? Now though, Bitcoin miners and celebrities, involved in its endorsements, are making some really good money and publicity. The hype created by the Bitcoin miner’s bold statements, mostly as publicity stunts, is creating some positive reaction. But even with this, people are now investing less in Bitcoin shown by the downward trend.

Bitcoin isn’t used in everyday shopping, however, online shopping using cryptocurrency is increasing. This is ‘crypto’ in itself. There are many other altcoins that have hit the market. With new altcoins being introduced Bitcoin has some stiff competition.

The future of Bitcoin is uncertain, but it totally depends on you. Have you invested in Bitcoin yet? Let us know in the comments below.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.