We have all witnessed the growth of Bitcoin, the surge in it’s prices, and the discovery of overnight millionaires. And all this is owed to what was an academic concept until turned into virtual reality by the creation of Bitcoin in 2009. But much like the dreaded NEET is the idea of the future of Bitcoins. Have cryptocurrencies already peaked? Or they are yet to reach their full potential?
The Future is Bitcoins
Firstly, understand that the future of cryptocurrency lies in Bitcoins. And Bitcoins have major drawbacks to them, like the transaction anonymity and decentralization which were earlier considered an advantage now simple mean they are more prone to money laundering, smuggling, and illegal activities of all kinds. Dues to the lack of any central authority, nobody is managing the smooth run of things, hence no backup for consumer protection.
Here are a few more limitations that alter the future of digital currency; to help you prepare for an investment, much like preparing for JEE Main.
- Apart from the lack of government backup, you can lose your Bitcoin resources with just a computer crash, or a simple hack. These are solvable problems though.
- With government having no authority over the Bitcoins, and with gaining popularity they are going to be face a lot of regulations from the authorities. Bitcoins are already illegal in several countries like Morocco, Algeria, Bangladesh, Nepal, and so on.
- Bitcoins although had a wild craze, are still a minority due to their number of consumers. Only the tech savvies’ seem to be accepting this new complex wave of progress.
- It is a major risk venture. Just like any other investment, Bitcoins, or any of the other aspiring digital currencies are a risky game. For example, Bitcoin plummeted from $260 to about $130 within a six-hour period on April 11, 2013.
- Bitcoins can have catastrophic end by just a simple technical flaw, like a bug that would allow someone to steal your coins. Or an economic flaw, like a code change that would instantly give 10 million coins to just anyone without a reason. Or a consensus flaw, like Bitcoin, splits into two roughly even coins.
- Bitcoin owes a large part of its success to just being the latest fad of the century. Most people invest in it because of a sip le psychological trigger- If everybody is doing it, it must be right!
Once the craze falls down or the next promising currency is unveiled, your currencies price starts to drop.
Bitcoin and the Other CryptoCurrencies
Although Bitcoin is the standard digital currency of today, there are other cryptocurrencies that are rapidly growing in competition to Bitcoins. We have Ripple, Bitcoins rival, recently had a huge surge in prices from $0.25 to $3.16 at present, with a market cap of 122 Billion. Ether, Litecoin, Monero are the other leading Cryptocurrencies of today.
- Ether which fuels the Ethereum blockchain. And Ethereum blockchains brought a revolution with smart contracts whose numerable applications can make Ethereum the undiscussed leader in five years, according to Leonardo Pedretti, Ethereum Italy Founder.
Albeit, each has its own features and advantages and disadvantages, the success of one is the downfall of the other.
Nobody can predict the future, but being informed sure does help you weigh out your options, and speculate reasonable results. Therefore, with the demand of cryptocurrencies rising with the second, the future of cryptocurrency is just a probability experiment for now.
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