If you are on social media or invest your money in several products, the chances that you have heard about Bitcoin or other cryptocurrencies like ETH. They have been on the rise for the last couple of years – both in popularity and in value. Over the past year, BTC has earned more than %500 in value and raised its market cap to more than $1 Trillion. This is more than most of the companies in the world, and it has become one of the most valuable assets in the world. This is something huge, new technology to rise this fast. It is not only Bitcoin, but other cryptocurrencies have also raised in value. Tremendous amounts of money were earned by their investors over time. After all, investing in something that has gained %500 value in a year, is a perfect asset to earn money from.
But the blockchain technology that enables Bitcoin and other cryptocurrencies has raised in popularity and in value too fast. Is there a future for them? Are they going to stick for a very long time in our world? What are the chances of blockchain technology – the cryptocurrencies including Bitcoin to become the world’s new currency? There are all these questions wandering in people’s minds. Some say Bitcoin will be used more than the fiat currency in the future and take over the financial system and others say they are not going to do anything that will flourish in a couple of years after the hype around them goes down. Both have solid arguments to look at. In this article, we will discover these and look at the possible future of Bitcoin or other cryptocurrencies.
Is There a Future of Them?
Now, speculating about Bitcoin or other cryptocurrencies’ future would not stand ground because they do not rely upon anything fundamentally. When you look at other assets in the world like stocks or forex, they rely on something. There is a fundamental to it. Stocks are representative of a company, go up or down depending on the company’s well-being, forexes depend on countries because it is their currency. But with Bitcoin or cryptocurrency, they only drive from the demand, nothing else. So, if people choose not to buy these coins, the price would go down. And on top of that, if a couple of major countries decides to ban them for use or taxes them, it will go downhill without any possible recovery and it will be the end of it.
This is the major problem with cryptocurrencies or Bitcoin. The fundamental is the demand, and if there is demand, it will go on to rise. One of the many reasons why Bitcoin raised %500 in over a year is because it became popular. But those who say that once the hype is gone, the price will go down as well could be right. However, they could also become the new financial system sometime in the future, maybe decades later. There is no certain thing to say, but there are both opinions out there.