At first, it seemed like bitcoin was dead. After all, the value of digital currency had plummeted by more than half since its peak in December 2017. But surprisingly, bitcoin is not quite done yet. In fact, the future of bitcoin looks very promising. If you’re new to bitcoin and want to learn more about its potential, read on for an overview of what to expect in the coming years. You may be surprised at just how well bitcoin is doing despite recent market turbulence. (Also Read: How To Start Investing In Cryptocurrency?)
What is Bitcoin?
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
What is its value?
Given that bitcoin has been in existence for just over 10 years and that there are only 21 million of them, many experts believe that it has lost much of its value. Some have even gone so far as to call it “dead.”
However, despite the steep declines in recent months, some believe that bitcoin could still have some value if used correctly. For example, if someone wanted to buy goods online without being tracked or monitored, they could use bitcoin as the currency.
What to Expect in the Future of Bitcoin?
Some experts believe that bitcoin’s price could drop as low as $2,000 before recovering. However, others predict that bitcoin could eventually become worth more than gold.
Regardless of what happens to bitcoin in the future, there are a number of factors that could impact its popularity. For example, if governments begin to acknowledge and regulate it more closely, that could lead to increased interest.
Additionally, if Bitcoin becomes more efficient and easier to use, more people may start using it.
How do I invest in bitcoin?
Bitcoin is also not protected by federal law. If you lose your bitcoin, you will not be able to get it back. Be aware that there have been instances of online scams involving people trying to steal bitcoins from people who have invested in them. Before investing, do your research and be sure that you understand the risks involved.
What are the trusted markets to exchange bitcoin?
What are the risks of investing in bitcoin?
Bitcoin has experienced wild price fluctuations over the past few years, with the digital currency reaching as high as $19,000 in December 2017 before crashing to around $6,000 in early 2018. This volatility makes it tough to predict how much money you’ll make if you decide to invest in bitcoin—and it’s also risky because there’s no guarantee that the price will stay high.
2. Bitcoin is not regulated by a government or financial institution.
This means that there’s no safe way to store or use bitcoin, which can be dangerous if you don’t know what you’re doing. And because bitcoin is not backed by anything concrete (like gold or silver), it’s vulnerable to economic crashes and hacks.
3. Bitcoin is not immune from taxation.
Since bitcoins are treated as property rather than money, they’re subject to capital gains and income taxes just like any other asset. If you’re planning on using your bitcoin profits for tax purposes, be aware that it could be difficult—and potentially costly—to comply with tax regulations concerning digital currencies.
What are the implications of Bitcoin’s death?
First and foremost, the fall in value will likely discourage people from investing in bitcoin, which could lead to its further decline in popularity.
Second, businesses that are currently using bitcoin as a form of payment may find it difficult to convert their customers into other forms of currency.
And finally, if there’s no demand for bitcoin when its value falls below a certain threshold, this could lead to its demise altogether.
Conclusion
It’s been a tough year for Bitcoin, to say the least. The cryptocurrency has seen its value plummet by over 70% this year, and many have proclaimed it to be dead. However, despite all the negative news, there are still those who believe in Bitcoin—and who are using it to make some serious money. So if you’re thinking of investing in Bitcoin this year, don’t panic! There is still plenty of upside potential for this technology. (Also Read: Why is bitcoin falling so much?)