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What the past says about Bitcoin’s future

By Guardian Nigeria
13 September 2022   |   9:21 pm
The future is uncertain is a common phrase. Unless we create it, no one can be sure what will happen tomorrow, next year, or after twenty years. We can apply the same principle to Bitcoin. Many people firmly believe that no one knows what the future of Bitcoin will be. Will Bitcoin wither the ever-growing…

The future is uncertain is a common phrase. Unless we create it, no one can be sure what will happen tomorrow, next year, or after twenty years. We can apply the same principle to Bitcoin. Many people firmly believe that no one knows what the future of Bitcoin will be. Will Bitcoin wither the ever-growing storms, including regulations? Will it become the global reserve currency? We can only make informed guesses. You can check out BitiCodes to start your bitcoin journey and better understand how such mobile apps benefit Bitcoin users.

What Is Bitcoin?

What other better place to start from than understanding Bitcoin? For starters, Bitcoin is a form of digital currency. An entity called Satoshi Nakamoto developed and launched Bitcoin in 2009 as an alternative to conventional fiat currency and financial system. Today, Bitcoin is a global phenomenon affecting a significant part of the worldwide economy.

Bitcoin uses blockchain technology that is decentralized and allows peer-to-peer sharing. And this makes Bitcoin secure for users because no government controls it. As such, Bitcoin operates as a deregulated digital currency and asset. The price of Bitcoin has generally increased since 2009. However, the price is highly volatile and keeps fluctuating. 

What The Past Tells Us About Bitcoin’s Future

Successful Growth

One important lesson we can use to predict the future of Bitcoin is its successful growth. Within a short time, Bitcoin has become the most popular cryptocurrency globally. Millions of users are using Bitcoin today. According to recent estimates, Bitcoin’s user base now exceeds 109 million users.

The growing popularity of Bitcoin over the last decade tells us that Bitcoin will continue to grow in the foreseeable future. More individual and institutional users will start using Bitcoin. And this will see a significant surge in the number of users. The attractiveness of Bitcoin in the past doesn’t seem to be weakening, which will drive growth.

Influence Innovation

Blockchain is a technology with more significant potential beyond underpinning Bitcoin. Technology has potential for technological developments and innovation. Already, blockchain has inspired the development of mobile apps for trading Bitcoin. 

As we understand Bitcoin blockchain technology more, we will discover new ways of using it for innovation. Whether it is in science or healthcare, the future of Bitcoin looks brighter in terms of building new opportunities that we may have never imagined. 

Booms and Bursts

Bitcoin has experienced numerous periods of booms and busts. During some periods, the price of Bitcoin rose dramatically, such as in November 2021, when it went up to $65,000. However, bursts have followed such booms, where prices have plummeted to worrying levels. Likewise, Bitcoin has overcome even the most severe crashes in the past.

The lesson from Bitcoin’s past of booms and busts shows that it will continue to behave similarly in the future. At the moment, Bitcoin is experiencing a burst after shedding over 60% of its value since December 2021. For some investors, this may seem like the end. But as the past tells us, Bitcoin will eventually come out of the bust, and the prices will start rising.

Conclusion

Bitcoin is very unpredictable and uncertain. Yet, these same qualities are some of what makes it a unique asset category. If we could easily predict the price of Bitcoin in the next six months, for example, then the attractiveness that comes with speculation would be gone. However, we can look back at the history of Bitcoin and draw some important lessons about its possible future. Learning from the past equips us with a better view of Bitcoin’s future.