Ten years ago, the concept of virtual currency was laughed at by trade pundits and finance experts. People ridiculed the idea of having a currency that is not physically quantifiable. In 2009, the world’s first cryptocurrency arrived, and within five years, the demand for these digital assets skyrocketed.
Today, almost everyone is familiar with top cryptocurrencies, particularly Bitcoin, which has shown astronomical growth as a financial instrument. During the economic slowdown caused by the COVID-19 pandemic in 2020, Bitcoin is perhaps one of the few financial instruments to have grown impressively. It has had people speculating the likelihood of Bitcoin being the only money being used in the world in the future.
What is Bitcoin?
People in developed and developing markets are quite familiar with Bitcoin. It is the world’s largest cryptocurrency and also the first to be created ever. Satoshi Nakamoto, an anonymous Japanese entrepreneur, is dubbed as the creator of the first peer-to-peer electronic currency named Bitcoin. Bitcoin is a cryptocurrency that runs a decentralized ecosystem, void of any third-party controlling its growth. No bank or government influences or authorizes the value, transactions, and market movements of Bitcoin. According to the records, Bitcoin was initially priced at $0.0008 in 2009 and reached $0.08 by mid-2010. Ten years later, today, a single Bitcoin (BTC) is worth over $28,000. Many investors are making huge profits by investing in Bitcoin. You can also gain much profit from it by choosing the platforms like Bitcoin Code. It is an automated trading platform that enables you to make huge profits. Check the Bitcoin Code Review to know more further about it.
What Does the Future of Bitcoin Hold?
Historical data reveals how Bitcoin emerged as the fastest-growing financial asset ever. The future of Bitcoin is expected to witness similar high-paced growth. Inflation will be boosting its value as the lowering purchasing power will drive the adoption of Bitcoin over fiat currencies such as US dollars. A massive stimulus is created by people who demand store-of-value assets such as Bitcoin over stagnant assets.
According to investment experts, institutional adoption of Bitcoin will be rampant. Investments and services driven by Bitcoin would strengthen its confidence among people. Early Bitcoin adopters will become the next global billionaires. The infrastructure built around Bitcoin shall gain immense maturity, making buying BTC tokens easier and safer than today.
Can Bitcoin Replace Fiat Currency?
For Bitcoin to completely replace fiat currencies such as the Euro and US Dollar is rare but not impossible. Today, several businesses accept Bitcoin and other cryptocurrencies as a mode of payment. However, if the usage of Bitcoin outpaces that of fiat currencies, traditional money would lose value and fail to gain in recourse. Soon, Bitcoin may not take over fiat money entirely. It would require a robust blockchain infrastructure that allows the entire world to adapt seamlessly. Moreover, the transition from cash to crypto-cash may become incompatible with underprivileged people. Established financial institutions, however, may change their ways and support Bitcoin as an alternative to fiat currencies.
Key Benefits Bitcoin over Cash
There are two possible advantages of having a crypto-only future. According to a recent Futurism report, one of the positive outcomes of Bitcoin replacing real money is its non-manipulated value. It is important to consider that Bitcoin will remain decentralized forever, which is why its price would grow rapidly. Beyond that, Bitcoin also has the advantage of supporting the concept of a universal basic income. The value of fiat currencies changes from region to region, while Bitcoin prices are universally uniform.
Bitcoin Price Prediction for the Near Future
As of December 2020, Bitcoin has surpassed $27,000, registering a colossal 195% year-to-date growth. This meteoric rise of Bitcoin is primarily driven by mass blockchain adoption, advancements in blockchain security, and the fall of traditional financial systems. Huge investments in Bitcoin are being made by famous billionaires, top investors, and large financial corporations. By the end of 2025 – or even sooner – the price of Bitcoin is predicted to surpass $100,000.
Will Bitcoin be the only money being used in the future? One can’t say if Bitcoin will be the only form of currency in use in the future. To become a global currency, Bitcoin falls short of a global money supply. Today, Bitcoin’s market capitalization is just over $110 billion. According to ABC News, the world’s total wealth stood at an estimated $360 trillion in 2019. Hence, it may take quite a while for Bitcoin to match this value.
Time will tell how Bitcoin would sail through these economic turbulences caused by COVID-19 and other unforeseen events. But, surely, Bitcoin could outpace several fiat currencies in the next ten years. According to Jack Dorsey, the CEO of Twitter, Bitcoin could ultimately be the world’s single currency in the next decade.