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What the future holds for Bitcoin

By Guardian Nigeria
25 November 2021   |   8:44 am
  Bitcoin is among the revolutionizing inventions for the financial sector. Bitcoin has secured a safe space in the financial world with its spectacular performance. For most people, Bitcoin is a digital currency and an asset. That’s why some entities use it to pay for services and goods while others purchase and hold it, waiting…

 

Jack Dorsey, CEO of Twitter and co-founder & CEO of Square, attends the crypto-currency conference Bitcoin 2021 Convention at the Mana Convention Center in Miami, Florida, on June 4, 2021. (Photo by Marco BELLO / AFP)

Bitcoin is among the revolutionizing inventions for the financial sector. Bitcoin has secured a safe space in the financial world with its spectacular performance. For most people, Bitcoin is a digital currency and an asset. That’s why some entities use it to pay for services and goods while others purchase and hold it, waiting for its value to appreciate. Thus, some people trade Bitcoin for profit while others use it as a virtual currency.

Regardless of how you perceive this invention, Bitcoin provides an efficient and effective way to transfer value. What’s more, this virtual currency has features that benefit and protect the users. It also enables people to pay for services and goods without intermediaries like conventional banks. Bitcoin’s increasing value and popularity have helped it to dwarf other digital currencies. Thus, Bitcoin price has continuously crushed records in terms of value, while experts speculate about its potential. Here’s what the future might hold for this digital currency.

Convergence with the Conventional Financial System
So far, Bitcoin has shown the potential to converge with the conventional financial system. That means banks could provide custodian services catering to the needs of Bitcoin investors. Some financial service providers could also offer Bitcoin investment products. That means people could purchase Bitcoin on platforms like The News Spy and then use it for investment purposes.

Additionally, the increasing number of merchants accepting Bitcoin means that this virtual currency could eventually become a standard payment method. Thus, Bitcoin could become a payment method that people regularly use the way they do with fiat money.

Bitcoin Could Become a Global Currency
Satoshi Nakamoto wanted Bitcoin to be a currency that people could use globally without intermediaries. And this dream is gradually becoming a reality as merchants use this virtual currency to execute cross-border transactions.

While some governments are against using Bitcoin as a legal tender, others like El Salvador have already embraced it. And Bitcoin is influencing how people send and receive money globally. Some people and businesses use Bitcoin due to its efficiency and low transaction fees. Essentially, a Bitcoin transaction is almost instant and irreversible. Thus, this digital currency solves problems like chargeback that merchants deal with when using fiat money. Bitcoin presents numerous advantages that may prompt the world to accept it as a global currency.

Bitcoin Could Serve as a Protection Tool
Another argument about what the future holds for Bitcoin is that it could become a popular tool for inflation protection. When fiat money starts losing value, people could purchase and hold onto Bitcoin. When the Covid-19 pandemic hit the world, some central banks responded by minting more money. Unfortunately, this led to the diminishing value of fiat money. Consequently, some people turned to Bitcoin because nobody regulates its production apart from its protocol.

The world can never have more than 21 million tokens of this cryptocurrency. What’s more, Bitcoin’s supply rate depends on the amount miners generate. Thus, no government or central bank can influence the supply rate. For this reason, some people see Bitcoin as a more stable asset to invest in during a global financial crisis. After all, Satoshi Nakamoto created this virtual currency in response to the 2008 economic crisis.

The Bottom Line
Bitcoin’s future looks promising as more people, businesses, and governments continue to embrace this digital currency. With the growing Bitcoin network, the global population could use it for daily transactions. And this could pressure governments to adopt this digital currency as a legal tender. Thus, Bitcoin could eventually become an official means of payment in more countries. Eventually, this digital currency could become a global payment method.