So Bitcoin has become a word that’s on everyone’s mind. You might know this term because of news of its continuous rise over last two years. You might already know Bitcoin is a Cryptocurrency. It is managed using advanced Encryption Techniques. We are going to discuss the future of blockchain and cryptocurrency as whole.
You can see its continuous growth over the years. It reached its peak around Christmas 2017 , when it was on its all time high $19343.
The main technology behind all these cryptocurrencies is “BlockChain”. Click here to get details about internal functionality of BlockChain.
Cryptocurrencies like bitcoin are created digitally through a process called “MINING”. This process requires powerful computers to solve complex algorithms and crunch numbers. This makes the transactions so secure that it is considered to be virtually un-hackable.
Bitcoin is de-centralized , that means no one heads Bitcoin .It uses peer-to-peer technology. It enables all its functions like issuing, processing and verifying transactions to be executed by the network itself.
Value of any cryptocurrency depends on its demand . As the demand for Bitcoin rose high in previous year , its value increased manifold. So any cryptocurrency will be in market as long as someone wants to pay for it. If there will be no customer , then its value will fall to zero.
Future of Blockchain or Bitcoin:
No one can be sure about the future of cryptocurrency, however future of blockchain looks bright. It is pretty sure the banks and financial institutions will make use of blockchain in order to secure their transactions. The main asset of bitcoin i.e decentralisation and anonymity , are also its liability. Due to anonymity of transactions it is widely used in lot of illegal activities including smuggling and money laundering. Bitcoin in its current form can never be main currency for any country because it does not safeguards asset of any customer . If somehow a person looses his money there is no one he could come to get help , as no one heads it.
There is another side to this story as well. In coming few years however prices of different cryptocurrency will keep rising and different giants will keep introducing there cryptocurrency . In future if some ideas come which can have complexity like bitcoin but also safeguards customer interest , then it can become main form of currency for many countries. It is expected that number of people who owns cryptocurrency will be triple by end of 2018.
One of the major disadvantage apart from safety , that needs to be focussed is Limited scaling of such currencies. The number of transactions that can be done it very small as compared to conventional methods like credit/debit card transactions.
Cryptocurrency which was a dream 5 years ago is now a reality. It is one of the most interesting topics for discussion. Its demand will continue to rise in coming future as more people will own cryptocurrencies. It does not seem to become main stream it near future. Its technology mainly “blockchain” will surely be used by many financial Institution in coming years.