Bitcoin: Where will it be and How will it perform in the future

• In the long run, with some technological advancements, Bitcoin can become an everyday payment option.
• Even though Bitcoin has a limited supply, it may never get exhausted.

In today’s time, cryptocurrency is all the hype and among them, Bitcoin is a name that we all have heard. Bitcoin is considered the most prominent and oldest cryptocurrency in the world but even then, it doesn’t cease to amaze investors. The reason for it is its high fluctuation rate. Irrespective of that, it is still considered one of the best investment options in the world as it can provide enormous returns in a short span of time. 

As I write this, the price of Bitcoin stands at $26800.66 with a trading volume of approximately $24 billion in the past 24 hours along with a percentage increase of 4.26%. Coinmarketcap has ranked Bitcoin as #1 for having a market capitalization of $519.8 billion.

What is there to come for Bitcoin

Bitcoin is not all roses, it does have security complications. According to Chakib Bouda, CTO of the payment firm Rombus, hackers have stolen billions of dollars worth of Bitcoins since its inception. Bouda further states Bitcoin can have a whole new reputation with advancements in its security protocols.

For it to become a mainstream payment option, Bitcoin needs to perform some technological advancements on its network. It should be able to handle a huge volume of transactions in a shorter time frame and scale up its operations.

Even after all this, technical analysis of Bitcoin and USD depicts a favorable picture in the long run for investors.

On the other hand, hardcore Bitcoin extremists like Michael Saylor, Co-founder of Microstrategy, believe that it will ‘forever’ be on ‘boom’ and won’t be in a negative trend if it ever goes that path. To promote Bitcoin, Microstrategy has converted all the reserves of their cash into Bitcoin and continues to do so as soon as they get some cash to spare.

Supply conditions of Bitcoin 

Bitcoin is a limited cryptocurrency meaning it is limited to 21 million units only, out of which 19,395,181 are already circulating over the market along with new ones being mined every day. Even though the supply of Bitcoin is fixed its demand with each passing day is increasing as more and more people are getting inclined towards it. 

The supply of 21 million Bitcoins will not be achieved till the year 2140 or it even might not be earned ever. This is because the rewards for adding a new block get halved after 210,000 new blocks are added to the chain or approximately in four years. This number started from 50 Bitcoins per new block as of the year 2020 and currently stands at 6.25 Bitcoins per new block. Due to this new investors may show disinterest in the cryptocurrency as they vie for ownership and this puts their ownership in a spot.

Bitcoin is being adopted at a high rate

One of the main factors that navigate the price of a cryptocurrency is its adoption, meaning, how many individuals, organizations, and governments are ready to accept it as currency. The more entities are interested in adopting Bitcoin, the more returns it will provide. Bitcoin was reported to have an adoption rate of 113%.