Bitcoin – What does the future hold for currency?
In a world faced with uncertainty, economic turmoil and a year of dramatic political change, Bitcoin made the headlines. Bitcoin has actually been around since late 2008, but only started becoming popular in 2013, reaching a pivotal point in 2017/2018 where it gained its biggest following. Straight after, Bitcoin dropped in value, meaning avid investors and amateurs alike lost out on big bucks.
Bitcoin’s main advantage was that transactions were anonymous and when people started to mistrust banks, it became an attractive market to invest in. Bitcoin is widely recognised as currency by many countries, but with minimal regulation and trader’s anonymity, many people were sceptical about its future.
So what does the future hold for cryptocurrency compared to regular currency?
It seems like most of the hype surrounding cryptocurrency has died down somewhat since earlier on in the year. However, Bitcoin is still a prevalent currency, predominantly in China where the currency still remains relevant. Existing investors hold on to the cryptocurrency expecting further price increases in the future. In addition to this, other cryptocurrencies such as Litecoin, Ethereum and Zcas are still on the market.
Is cryptocurrency the answer?
It is believed that cryptocurrencies popularity was following a distrust in banks and the government, a halt in income and an increase in expenses throughout the UK. This caused unlikely parties and amateurs to start investing in the currency. Whether they were looking to increase their assets or were in need of quick cash, it seemed like Bitcoin had all the answers.
After Bitcoin made headlines for losing % in value in one day, a lot of people were reluctant to continue investing in the currency. But, does Bitcoin have a hype cycle like other products in the stock market? Was it the media attention that caused a dramatic peak and associated crash?
What we do know is that long term investors in Bitcoin and its innovative technology still continue to believe in it. It’s difficult to say whether Bitcoin will survive the test of time; it’s not like ordinary investment assets. Companies and merchants accept Bitcoin as a currency, so it may well be that the demand increases as more and more companies accept it as value.
Standing the test of time
Ultimately, the future of Bitcoin and other cryptocurrencies are unknown to most of the population. Experts in the industry may have their ideas about how the currency will develop but for now, most of us will stick to using regular cash currency. What we do know, is that slowly we are becoming more digital, even with our normal currency. Whether that means we will no longer need cash in the future but find new digital ways of spending our money. We’ve already introduced mobile payment through the use of apps and contactless payments so who knows where we will be in the future.
If Bitcoin is the answer, we sure haven’t really found the right question yet. That being said, it’s definitely interesting to see where the future of cryptocurrency and digital technology with our currency will lead.