Whats in store for Bitcoin in the future?

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2016-05-28 00:00:00:


Cryptocurrencies, despite a rather short period of existence, have become widely known. The first virtual currency bitcoin is especially popular both among the tycoons of the financial world and among ordinary people. A significant role in the issue of demand growth was played by the fact that it is quite expensive and, unlike fiduciary banknotes, demonstrates a stable growth in the exchange rate, and is also capable of creating material values even in the harsh conditions of the global economic crisis, known as the “great recession”.

Currently, many companies have begun to actively work with Bitcoin, although today it is still only at the initial stage of its development. Moreover, the innovative blockchain technology, on which the financial power of the cryptocurrency is based, has been appreciated and is widely implemented in various fields of activity of modern mankind.

The growing popularity can be explained by the fact that the number and volumes of transactions are increasing. It got to the point that this does not give the exchanges the opportunity to constantly develop. And the money transfer system of the same name with the cryptocurrency itself is experiencing obvious difficulties, such as a drop in throughput and the associated increase in the intervals for making confirmation of payments.

So what will happen to Bitcoin in the future? How will it develop and how will it surprise eminent specialists and ordinary users? According to experts, in 2016 the system will undergo important changes. Exchanges and other resources that trade cryptocurrencies and exchange them for different monetary units will not be left out.

 

Forecasts

When discussing the current trends in the development of the Bitcoin cryptocurrency and the payment system of the same name, it is quite possible to rely on the arguments of well-known experts, in particular, Ch. Woolnauf. He outlined several possible scenarios for the evolution of virtual money in a tangible future:

  • A business that offers its users and consumers just one service (including financial) will give way to companies that offer a variety of them.
  • The cryptocurrency user base will grow, but slowly. We should not expect a massive transition to Bitcoin in the near future.
  • Many exchanges will have to close or merge.
  • The cooperation of banking institutions with Bitcoin should be established.
  • There will be slightly fewer startups that are related to cryptocurrency.
  • Bitcoin is the currency of the future, since it has no practical limitations in its development and is distinguished by its unique plasticity, which allows making changes and improvements to the unique functioning mechanism.
  • In 2016, Bitcoin and the payment system of the same name will reach a significantly new level of development, thanks to a significant increase in confidence on the part of investors and ordinary users.
  • Investment in this sector will increase over time until the user base becomes critical.
  • The value of the cryptocurrency will remain stable and, moreover, will slowly but surely grow.

Currently, the value of the currency is hotly debated among financial experts. Many of them believe that, despite Bitcoin exceeding the $ 450 mark, its price is understated by at least 200 conventional units, which is a consequence of numerous intrigues on the part of representatives of the official authorities, financial and credit structures.

Bitcoin fell into the sphere of interests of large investors. For example, in Britain, venture capital firms are raising seed capital to launch their platform that will integrate Bitcoin into online shopping. However, no one says that this is an attempt to jump on a train that is already leaving. For example, P. Byrne (CEO of Overtok) said that he was more confident in this migration and its success than anyone else. This US investor has put cryptocurrency at the top of the list of electronic payment services and is confident that Bitcoin will become a mainstream currency in the future , if not one of the first. Thanks to such a successful marketing move, he was able to significantly increase his own capital.  

The latest advances in cryptocurrencies indicate that the future of Bitcoin is not hazy, as some Western experts claim. The same Byrne, regarding what will happen to Bitcoin in the future, believes that in a few years this cryptocurrency will become the main one and will take a leading position. It will go beyond the Internet and play a huge role in the development of micro and macroeconomics.   

Confidence that Bitcoin is the currency of the future is also inspired by the news coming from Japan, a country whose economy is considered one of the most advanced in the world. This news was unexpected for many, especially after the case when the largest exchange in Japan suffered a loss of about 850,000 Bitcoins, which discredited them among many users. The countrys government has even set up a state-owned company, JADA, which is studying cryptocurrencies to prevent similar situations from occurring in the future. The company also consults government officials. Experts hope that Japan will be able to "recoup" by legalizing this currency. Therefore, there are all the prerequisites for Bitcoin in the future to become a full-fledged currency, and its industry will continue to develop at such a pace.     

 

Reasons why the value of cryptocurrency will increase this year

Confirmation that the future of Bitcoin is promising is the increase in the growth of transactions and the volume of financial flows in recent years. This also includes the fact that this currency is used to settle accounts with employees, with the help of it you can perform certain actions and purchases on the Internet, and also increase investments. Therefore, the ratio of the Bitcoin exchange rate to other currencies popular all over the world remains significant for a large number of ordinary people. They saw in cryptocurrency a lifeline that allows them to preserve their own savings in the difficult economic conditions of recent years.

So what will happen to Bitcoin in 2016? What to expect from his course? Below are a few examples that allow us to confidently determine the future of Bitcoin. 

  1. Supply and demand. The demand for cryptocurrency has grown lately. This has been noted by world experts. The course also rose. Electronic payment systems have greatly simplified transactions using Bitcoin. This also gave impetus to the growth of his popularity. If this continues in the future, then the value of Bitcoin will increase significantly.
  2. Increasing interest in blockchain. Confidence that Bitcoin is the currency of the future is also given by the fact that it is noticeably and quickly beginning to gain popularity around the world. Many financial and banking institutions are beginning, if not to apply, then to think about the introduction of this cryptocurrency. 
  3. Diversification. What happens to Bitcoin also depends on the employees of financial institutions who can add Bitcoin to their portfolio. It is more stable in its exchange rate than other funds, both electronic and conventional. Also, it is not influenced by the course of foreign policy of a particular country. 
  4. Economic slowdown in China. The fact that a country has been in decline for a certain time is important for the growth of its assets, since this country occupies a leading position in the global market. This is causing concern among world leaders. Because of this, the attention of the Chinese government may turn to digital currencies. All this can also significantly affect the growth of the value of Bitcoin in the future.
  5. The role of financial institutions in the growth of Bitcoins popularity can hardly be overestimated. The neglect and tenacity with which they ignored the existence of the phenomenon, whose total capitalization exceeded $ 6 billion and continues to grow, bordering on insanity. But recently, the situation has changed radically, and therefore more and more such institutions are beginning to actively introduce cryptocurrency, as well as explore its unlimited possibilities.
  6. Banks. Virtually all banks on Wall Street have already started trading alternative currencies. This will significantly affect the future of Bitcoin. It will also affect its course, which in the near future will rise to unprecedented heights. Considering that there is increased interest in cryptocurrency today, the value of Bitcoin may set new records this year.
  7. Safety. All financial market participants are trying to find ways to ensure transparency and security of payments. Most believe that Bitcoin, the payment system of the same name and blockchain technology are the best fit for the future.
  8. Brokers who use Bitcoin. Many of those who are interested in the growth of currencies in world markets may soon turn the entire existing system upside down, which will also affect the value of Bitcoin.

The factors listed above undoubtedly indicate that the value of the cryptocurrency will be stable and only growing. It is noted that temporary reductions are possible, which will be insignificant and short-lived. To avoid this, as well as to significantly strengthen its position, Bitcoin itself needs to overcome many difficulties on the way of its formation. Nevertheless, even today its potential is recognized by many world leaders in foreign exchange markets.

If all circumstances go well, then it is possible that in 2016 the cost of the cryptocurrency will be able to surprise even those who were ready for this before, not to mention those who were not ready for this from the beginning. And therefore, all that remains is to be patient and mine currency in all possible ways, and also hope that everything will turn out as well as possible for Bitcoin. Moreover, the opinion of world experts should be heeded, and they do not predict anything bad for Bitcoin yet. Already today, its rate is about $ 450. This is the highest mark in the last three months, but it is not at all a historical record.