The Future of Bitcoin is far from settled. We’ve discussed how it will become mainstream and accepted by mainstream merchants, as well as how to hack it using Quantum computing. But is Bitcoin’s future as a currency as bright as we’d hoped? Read on to discover what we think. This article explores some of the most common concerns about bitcoin’s future. Here are some predictions:
Price forecasts
Several analysts have recently increased their price forecasts for bitcoin. A recent panel of 33 analysts at Finder predicted that the price of bitcoin would hit $192,800 by 2025. The panel also predicted that the price would reach $206,351 by October 2021 and $408,700 by 2030. That would put bitcoin’s price at $167,476 by the end of 2022. Despite these high price predictions, the price of bitcoin is still far from being at the $120,000 it was in October 2017.
Although there is no way to accurately predict Bitcoin’s future value, there are many factors that affect the price. A number of uncontrollable factors can impact the price, such as national policy, door-to-door events, and even the attitude of people. In this piece, we’ll discuss a few of the factors that can affect the price of bitcoin. For now, there is no reliable way to predict the future value of bitcoin, so it’s best to focus on analyzing the current price.
Acceptance by mainstream merchants
Major brands such as Microsoft and Overstock have already started accepting the digital currency. The acceptance of Bitcoin as a mode of payment will be another significant step in the adoption of crypto as a means of payment. But how can merchants go about making this new form of currency accepted? Let’s look at some of the ways in which merchants can make it easier for customers to pay using crypto. Listed below are the benefits of accepting crypto.
One reason that consumers are adopting cryptocurrency as a form of payment is the security and privacy it offers. More shoppers will appreciate the fact that they are not tracked by advertisers, who bombard them with ads after they complete a “traditional” online payment. The second reason that merchants are beginning to accept cryptocurrency as a form of payment is the ease of conversions and exchange rates. Using this method of payment saves both the merchant and the customer time and money.
Financial viability
The financial viability of Bitcoin and other cryptocurrencies is under scrutiny. A recent report from the Bank of England lays out the risks and vulnerabilities associated with digital assets. These risks include the lack of intrinsic value, high volatility, and risk of contagion. There are also concerns over cybersecurity, criminal activity, and the power of herd behavior. However, the overall financial system is now stronger and more resilient than it was before the crisis, and the price of Bitcoin continues to rise.
Although the aggregate value of cryptocurrencies will soon top $2 trillion, this figure represents only a small fraction of the world’s equity markets and capital markets. As the systemic risks associated with these assets rise, the pressure for action is increasing. A significant problem facing cryptocurrency is the rapid growth of dollar-pegged assets, or stablecoins. These currencies may experience run-ons, which could have a detrimental effect on the entire financial system. Moreover, many exchanges and ecosystem entities have no robust governance practices and may be subject to manipulation.
Quantum computing’s ability to hack it
While quantum computing is far from being a widespread threat to the Bitcoin system, it could make it easier to crack encryption techniques. Quantum computers use properties of quantum mechanics to increase their efficiency by reducing the number of computation steps. These properties would make it possible to probe large numbers of data to determine the exact position of each atom. This would make most existing encryption techniques vulnerable to hacking. Even if quantum computers are years away from gaining the power to crack Bitcoin, the potential is huge.
A quantum computer could also deduce a private key from a public one, thus wiping out the bitcoin’s claim of inviolability and unhackability. Two major quantum algorithms, Shor’s algorithm and Grover’s algorithm, could break these cryptography protocols. As of now, no such hack has occurred, and there is time for developers and users to mitigate these vulnerabilities. If quantum computers do indeed become a threat, it’s important to prepare for the worst.