No matter how much we indulge in new things and new ideas, but we know that “old is gold.” Old always remains classic to us which we never forget. We always set our goals on New year stating ‘New Year, New Me’ but end up eating a large pizza and gaining weight.
The same goes for disruptive, revolutionizing Blockchain technology which is the driving force of Bitcoin and other cryptocurrencies.
Over the past few years, we have witnessed amazing growth in the cryptocurrency market rising through all the ups and downs.
Blockchain technology, however, is expected to generate the real long term value of the cryptocurrency wave in the upcoming few years.
Let's see how Bitcoin has managed to achieve its resolutions and where it’s failed in the past years.
Which resolutions did Bitcoin fully or almost achieve?
It’s highly appropriate that Bitcoin was born on Halloween. Even after being repeatedly declared ‘dead’, Bitcoin continues to defy critics. The last year witnessed the volatility of its price, but in spite of that, it’s trading at a rate that is more than a lot of leading companies like McDonald’s — a market cap of $170 billion. It is estimated that the global number of Bitcoin users is around 25 million, of which 5% are Americans. What’s more impressive (or should we say resolution worthy) are the financials — some 18 bitcoins have already been mined as I write, and you must remember that the market price of a single bitcoin is $9,450.
A genuine, peer-to-peer payment system is the fundamental resolution that Bitcoin fulfilled with no person or institution being ‘in-charge’ of bitcoin transactions. The process of transferring money online may appear effortless, but in reality, is a cumbersome process. Bookkeepers and accountants — that is, intermediaries — are entrusted with the task of maintaining multiple records to ensure proper completion of fund transfers. This translates into transaction fees, a long waiting time, and the scope for human errors.
By dispensing with the need for ‘trusted intermediaries’ — such as banks and other financial institutions — Blockchain enables greater autonomy for its users.
The bitcoin network has witnessed a hash rate increase by 60% in 2018 which not only indicates enhanced investment in critical infrastructure but also a greater degree of predictability and security for the network. A growing hash rate is a sign of a healthy network and this increase can be attributed to the mining behemoths that entered the space while bringing in a greater number of devices online to offer network security.
What is up with Bitcoin in 2020?
Since January 1, Bitcoin’s price has risen by 30% and has been hovering around $10,000 per Bitcoin since last month.
In addition to the Bitcoin halving and inflow of institutional funds into crypto assets, we consider the macroeconomic situation to be a strong driver of the Bitcoin price.
Being totally distorted by central banks in a financial market, Bitcoin offers the shielding opportunities which is now realized by traditional investors.
There are possibilities that in 2020 some of the bubbles created by the artificial glut of money burst will give Bitcoin a significant boost as an alternative asset class.
The bottom line
The year 2020 is still very young. Bitcoin is a highly volatile asset and nearly impossible to predict. Many price forecasts over the years turned out to be wildly off the mark. How much will Bitcoin be worth in the future is, therefore, anyone’s guess.
NOTE
The opinions expressed in the Blog are for general informational purposes only and are not intended to represent investment, financial, trading, or any other sort of advice. It does not provide education about the Crypto industry. The views reflected in the above information are subject to change at any time without notice. Research on your own or consult your financial advisor before buying or selling any cryptocurrency.