With the amazing run, Bitcoin has been having overthe last few years the optimism for Bitcoin and other cryptocurrency advocates ishigh. They are confident that not too far away in the future, Bitcoin shall replace fiat currency and be the prime currency that will drive the global economy. In fact, in anticipation of that moment when worth of Bitcoin is the sole accepted currency across the globe, they have even coined a term,hyperbitcoinization.
Overthe last decade, since its inception, Bitcoin has had a tumultuous journey. Its value has soared, plunged, stabilized, and crashed yet again with people speculating about its viability as a currency.But, each time, Bitcoin has been successful in rallying back and today has created a niche for itself that no investor could have imagined, a decade ago.
To know how Bitcoin will fare in the future, we must understand first why Bitcoin was conceptualized and whether the aim with which it was created has been achieved or not. The answers will help to come to a possible realization of its future.
Origin of the concept of Bitcoin
The 2008 Great Recession resulted in a feeling of distrust among citizens regarding the role played by the banks and other financial institutions in the manipulation of the financial system. Cryptographers and developers were on a try to create electric currency before the 21st century but theyfeltwholeheartedly that there was a need for an option that could address the problems faced by people in carrying out financial transactions.
Satoshi Nakamoto issued a white paper wherein Bitcoin was introduced as a virtual cryptocurrency that could be used to conduct transactions without the intervention of a third party.Instead of a centralized regulatory body, the cryptographic proof was used for the verification of transactions based on the decentralized blockchain technology.Finally, in 2009 it was released as a cryptocurrency.
The first several years were tough for bitcoin, with not too many takers. Its reputation was further compromised as it was used for conducting nefarious activities.
It was only in 2017that the interest in Bitcoin increased tremendously. From the common man looking for viable options to improve his finances to large business conglomerates to governments, the curiosity to know more about Bitcoin grew manifold.Today, Bitcoin is a flourishing trillion-dollar market with increasing acceptance worldwide, from all quarters.
Reasons why Bitcoin is considered the future currency
Easy access to Bitcoins
The emergence of several crypto exchanges and online brokerages with the growth of the cryptocurrency has made Bitcoin more accessible. Earlier, Bitcoin could be owned only through mining. Traders and investors can now easily start Bitcoin tradingafter buying cryptocurrencies from crypto exchanges, brokerages, and mobile trading apps you can find a popular one in this link. This advanced app is suited for both beginners and advanced traders in making profitable forays into the crypto market.
A few years earlier even if people wanted to invest in Bitcoin, options to buy the cryptocurrency were rather limited. Today with several crypto exchanges going public and many have established themselves to be reliable where you can safely invest your money, it is much easier to start Bitcoin trading. Bitcoin’s access is easier now and it is impacting its popularity even more.
It is estimated that there will bearound 500 million Bitcoin owners by the end of 2022 and the number of cryptocurrency owners will reach a whopping 1 billion mark. These figures show howBitcoin and the other cryptocurrencies are making fast strides toward acceptance in the global economy.
More businesses are accepting Bitcoin
All types of businesses, big and small, are gradually incorporating Bitcoin in their daily transactions. Several global conglomerates declared that they are welcoming bitcoin as payments. Some of the notable companies are Microsoft, PayPal, and Starbucks. This has translated into more Bitcoin transactions that are only expected to rise with an increasing number of businesses showing their support for the cryptocurrency. Nearly 15,000 businesses accept Bitcoin globally with 2,300 of them in the U.S.and among them over 25% of small businesses take this virtual currency as payment.
Governments’ recognition of Bitcoin
Governments worldwide are more proactive about the concept of cryptocurrency. Laws are being amended to ensure that Bitcoin users’ safety is maintained and transactions regulated. The U.S is open to the idea of having a central bank digital currency and even China has introduced a pilot digital yuan. El Salvador, in 2021 has madeBitcoin the country’s legal currency just like the dollar is.
With a wide range of future predictions for Bitcoins, it cannot be said for sure whether Bitcoin will replace fiat currency but this cryptocurrency is certainly not a bubble and is here to stay.