With the emerging of Bitcoin, enthusiasms of people are taking root over its price within few years down the road. Today’s article contains some price predictions by tech giants and Bitcoiners. But before descending directly upon the price prediction, we depicted the origination and other relevant terminologies of Bitcoin that are inherent to it to quench your thirst of knowledge.
The origin of Bitcoin
Satoshi Nakamoto is the developer of Bitcoin, the infrastructure of which differ it from other existing currencies. Through introducing Bitcoin, Satoshi wanted to brush away certain problems with existing payment systems. 2008 financial crisis made people think about the debilitating economic effects and gradually waning value of fiat currency.
Assuming the probability of epic collapse, many central banks inundated the markets with liquidity cutting interest rates to near zero which led to large-scale fluctuations in fiat currencies resulting in currency wars. When such situation appears, governments bail out affected banks and they print extra money which devalues the existing money supply.
Banks around the globe are looking at quantitative easing but what would be its future effect is unknown. The situation appears like banks are independently working from government and they are taking the economy to unknown which may result in devaluation of fiat currencies.
Bitcoin has come in place to make sure power won’t be centralized to elite individuals. It is uncertain whether Bitcoin will completely replace the financial infrastructure but it became able to catch sight of a number of banks around the globe. These banks can adopt this technological power because the core Bitcoin technology is open for everyone, meaning anyone can make platforms on top of it.
Bitcoin is not here just to be used as payment method, it has many uses and how you will use it that fully depends on you. We have such finance and technology which is afflicted with a number of problems and Satoshi Nakamoto tried to come up with a solution that helps recover such crisis. To this flawed economy, a strong alternative is needed, and let’s see whether Bitcoin can take the place.
Decentralization feature of Bitcoin cuts down the necessity of any third party like government, bank, or middleman. The meaning of decentralization is we are all part of the Bitcoin ecosystem. Bitcoin works better when more people embrace it. Anyone can accept Bitcoin after setting up his own business because free market spirit is the feature of these Digital currencies.
As soon as the thought of peer-to-peer technology come to your mind, you just think of Bitcoin. The world seems to be paying heed to this digital currency gradually. Once upon a time the current situation of Bitcoin was nothing but a dream and yet there are so many unknown potentials remain hidden and as hoped these clandestined potentials will get uncovered one day. Only those who are realizing the future of Bitcoin are grasping it.
Back in days, Bitcoin wasn’t evaluated especially because of security and some other inherent natures, but it is taking leading form overtime with the inception of several platforms, which are making Bitcoin an accessible and usable one.
The potentiality of Bitcoin technology is pleading people’s mind with open ledger aspects. But more and more exploration over the technology is required when states are thinking to bring Bitcoin as a payment system.
Is Bitcoin a currency?
From after 2011, the price of Bitcoin start going peak and the price of Bitcoin is determined by its users under the free market principle of supply and demand. The demand for this digital currency is cut off by halving which helps maintain inflation rate.
Bitcoin isn’t yet a currency as it lacks certain aspects of the ground rules. Bitcoin supply is limited by 21 million coins in total-and once the supply reaches the limit, it is halved, which happens once every four year. Bitcoin is the digital currency across borders and it can be converted into any local currency. Bitcoin is an excellent alternative mobile payment method which is hoped to take the customer base to the next level.
Bitcoin as a currency tool
Bitcoin even though being considered as a currency, it is yet far away to be accepted by merchants. But the benefit of Bitcoin is that it cuts down on fees and other costs and its success fully depends on consumers.
Do you think introduction of prepaid bitcoin cards and bitcoin debit card will push the adoption of this currency? The answer might be it slightly can mean it’s not certain.
But merchants are already using such plastic cards with fiats so no difference. Upon the acceptance of Bitcoin by retailers, its mainstream adoption firmly relies. Hopefully, we are ahead of the day when consumers leave the cash and pay attention to Bitcoin.
How retailers can be benefited using Bitcoin?
There is a frequently asked question that is how retailers can be benefited using Bitcoin? For their sake now we are talking about the advantages of using Bitcoin:
-Bitcoin transaction is done for a very low transaction fees.
-Bitcoin payments are easily convertible to any local currency. And a small margin is required for converting the bitcoin to your local currency.
-As being global, Bitcoin works the same in every country around the world.
-The value of Bitcoin is calculated to the eighth digit after the decimal point.
-Bitcoin payments help expand potential customer base on a global scale.
How are consumers benefited by Bitcoin payment?
Are you sure you are not carrying counterfeit money in your pocket? But when you make payment using Bitcoin, there is no fear of counterfeiting. Let’s look at other benefits:
-Though bitcoin is out of the intervention of any third party, regardless of any business hour, payments can be made anytime.
-No waiting for transactions processing which saves time.
-Making payment with Bitcoin to any country is possible as Bitcoin is a borderless digital currency.
-Innovation is running over Bitcoin to make Bitcoin transaction more convenient.
Working process of Bitcoin
The current economy has come past several crisis, and people who is victim to those crisis searches for better economy with transparent alternative. Bitcoin is here to uproot the seed of doubt from their mind over the existing economy introducing them with the decentralization.
First of all, Bitcoin took unbanked people and countries under its consideration. In developed countries, a vast number of people have bank accounts, but the scenario gets changed when it comes to less developed countries like Africa. Bitcoin is settling down itself on the field of mobile payment, which is a threat to card transactions.
Bitcoin technology is capable of:
-Sending money from one corner to another corner of the world.
-Taking on the remittance market.
-Easily convertible to local currency.
-A powerful tool in unbanked and underbanked regions of the world.
-All transactions of Bitcoin are logged and monitored in real time leaving users to get access to financial data from all corners of the world.
-One can get aware of payment’s origins and destinations through blockchain.
Using of Bitcoin is done not entirely maintaining anonymity but a certain level of. The protection is high when you consider that identity behind a Bitcoin wallet address can be hidden while moving funds with Bitcoin around.
But as we know bitcoin wallet addresses are part of the blockchain which tracks all info of incoming and outgoing transfers. So when someone knows your public wallet address can see the transaction records where anonymity is absent. But the scenario slightly gets changed when there is involvement of bitcoin exchanges.
Third party anonymity
There are ways to maintain anonymity when using Bitcoin, but these ways are not user-friendly. When you adopt such ways that mean either you are purchasing illegal goods or services or your intention is to avoid paying tax. You should be cautious about using any external service when you are focusing on anonymity. It is because when you are using any external service, you are assigning your coins on third party. And this system really goes against the core values of Bitcoin. Using of anonymity service raises question about money laundering.
Though not posting your public bitcoin wallet address in a public place and creating a new address for every single transaction, you can protect your privacy.
Creating a new wallet
Create a new wallet for every single transaction and don’t directly link it to any of your existing addresses. You may also be able to generate change addresses depending on how you store your funds. A change address happens whenever you have a certain amount of bitcoin in your wallet balance and are sending less than the total amount to another user. The Bitcoin Core client allows you to have this change sent to newly generated address. Here is no direct link between your original address and the new address.
Keeping wallet address secret
Never post your public wallet address in a public place to protect your privacy.
As local currencies are centralized and issued by a central bank, central banks can boost liquidity in the economy by quantitative easing. When more money is needed, central banks just turn on printing presses to issue more money.
But the scenario is different in the case of Bitcoin. When Bitcoin reaches the cap of 21 million, it is halved meaning Bitcoin is not fungible as other fiat currencies are.
Faith in the idea of Bitcoin and its technology
Trust is working as a hurdle for Bitcoin to get mainstream adoption. There are reasons to trust Bitcoin as it is leaving you full control on your own finances. The outer breakdown of national economy won’t affect your savings. Along with that the chances of bitcoin disappearing is so narrow indeed.
Decentralization makes every individual an integral part of the Bitcoin ecosystem. Does the concept of decentralization work as an obstacle in the way of building trust in people? Yes, there is a problem with decentralization which is if something goes wrong with the Bitcoin you own for some unexpected reason, then no one is going to pay for this. Once you lost them, they are gone.
People like to walk always in their stereotype way. Negligence to any new technology at its first sight has become human’s nature. Think of the initial introducing time of internet, no one used to give value to it but just think of its present condition. Bitcoin has come in place with the plan to recover some technological limitations. There is a long way for Bitcoin to go to be used by general public. General people are yet very much ignorant of Bitcoin technology, so they need more and more educational efforts.
As Bitcoin technology allows one to send money to anyone in the world at low or no expense, it has become a weapon to remittance players.
Faith in Bitcoin as a currency
Bitcoin is not yet a currency, but its functionality is slightly like a currency. Merchants around the world are using Bitcoin as a payment method. Receipt of payment can be done with Bitcoin with no extra costs that mesmerized merchants.
Converting Bitcoin to local currencies and integrating Bitcoin payments in both online and physical stores are possible. No cash and any bank card are needed to be spent by consumers while using Bitcoin as a payment. Bitcoin is leaving control on your own finance. If you are not satisfied with the current banking system, bitcoin well worth the time and effort.
Bitcoin price predictions
Since the inauguration of Bitcoin to date, there is a huge uptick in price increment. The price of Bitcoin grew up to cent, thus all the way up to $19,000+ per Bitcoin. How will you evaluate the increment of price?
Bitcoin has taken itself to such a perch that countless people around the world are now thinking to make money through BTC investments. Can you tell me at where the growth will be stuck? Despite the colossal growth, anti-Bitcoiners view the market a bubble and ready to pop. On the other hand Bitcoin evangelists are dreaming about their Bitcoin growing up to 200 times its current price.
Experts and Bitcoin evangelists are not sitting silent; they are predicting the future of Bitcoin price through making analysis. We are going to mention some of their standpoints and price predictions over Bitcoin.
Chamath Palihapitiya: $1,000,000 (by 2037)
Chamath Palihapitiya, who is a Canadian-American venture capitalist and founder and CEO of Social Capital, has predicted Bitcoin price will reach $1,000,000 in the next 3-4 years. He also thinks the price to be reaching a price of $1 million by 2037. As per his thought, the value of Bitcoin is supposed to be comparable to the value of gold within few years down the road.
Wences Casares: $1,000,000 (by 2027)
Wences Casares, who is a Silicon Valley-based fintech entrepreneur and the CEO of Xapo, thinks Bitcoin will hit $1 million sometime prior to 2027. As he predicted, Bitcoin will reach $1 million in as few as 5 years.
John Pfeffer: $700,000 (no date)
John Pfeffer, who is a partner at London-based family office Pfeffer Capital, has set a bold target for Bitcoin of $700,000 but he didn’t mention any specified year. Saying Bitcoin is highly easier to store and secure, Pfeffer assumed that Bitcoin can replace all of the gold currently held by private investors.
Jeremy Liew: $500,000 (by 2030)
Jeremy Liew, who is a partner at Lightspeed Venture Partners, predicted that Bitcoin price can reach $500,000 by 2030. He said his prediction to be realistic. The prediction of Liew got supported by Peter Smith, the CEO of Blockchain.
Mark Yusko: $400,000 (no date)
Bitcoin will be worth over $400,000 in the long run, as per Mark Yusko, an American investor, hedge fund manager, and philanthropist. He thinks Bitcoin to be gold equivalent saying there are about 20 million Bitcoin available today whereas gold is about $8 trillion.
Roger Ver: $250,000 (no date)
Depending on the principles of supply and demand, Roger Ver, who is an early investor in Bitcoin, bitcoin-related startups and an early promoter of bitcoin, estimated in 2015 that Bitcoin could very easily be worth $2,500, or $25,000 or even $250,000 per Bitcoin.
Anthony Pompliano: $100,000 (by 2021)
When Btcoin was at 10,000 mark, Anthony Pompliano, a founder and partner at Morgan Creek Digital, a crypto-friendly asset management firm for institutional investors, has predicted that Bitcoin will hit $100,000 by the end of December 2021.
Kay Van-Petersen: $100,000 (by 2027)
Kay Van-Petersen, who is an analyst at Saxo Bank, thinks that Bitcoin will reach $100,000 per unit by 2027, according to a feature by CNBC news published in May 2017.
Tai Lopez: $60,000 (mid-term)
If a small portion of the assets of millionaires globally is invested into Bitcoin in the upcoming months, the price of Bitcoin could justifiably grow to around $60,000, as estimated by Tai Lopez, a renowned investor and internet marketing expert.
Andy Edstrom: $8 trillion market cap (2030)
‘’Bitcoin would reach an $8 trillion market cap by 2030,’’ as predicted by Andy Edstrom, a wealth manager at WESCAP. His belief is Bitcoin could become the world’s default currency.
Mike Novogratz: 7.5 trillion market cap (2029)
Mike Novogratz’s, a former hedge fund manager, belief is that Bitcoin would probably surpass gold’s then market cap of $7.5 trillion within 10 years.
Winklevoss Twins: $5 trillion market cap (by 2028-2038)
The prediction of Winklevoss Twins, a famous Bitcoin billionaire, is sweeping because according to him Bitcoin’s future market cap will be at over $5 trillion. He indirectly made a comparison with gold market as he sees Bitcoin as a way more portable and way more visible.