When bitcoin was introduced to the world more than a decade ago, no one believed that there could be a system that is independent of government. Still, crypto analysts and experts believed bitcoin would be a revolution in the financial industry. But the revolution of bitcoin has hardly passed. The first few years of bitcoin were full of missteps, high fluctuations in price, and scandals by hackers and scammers.
The drop in the price of bitcoin has made it experience criticism from people across the world. Investors had faith in bitcoin, and their optimism has made them invest in bitcoin by predicting its future. Undoubtedly the coming years have proved to be a great success for bitcoin.
Not only investors but the bitcoin wallet holders also expect a huge increase in the price of bitcoin.
The compromised original vision of Bitcoin
A seminal paper on the introduction of bitcoin was released in 2008 by the mysterious inventor of bitcoin known as Satoshi Nakamoto. Bitcoin was invented to be decentralized and borderless and to be a great alternative to traditional currencies that are controlled and issued by the government.
The consensus method of bitcoin regarding transactions that take place on the bitcoin network is made to be independent of third parties or intermediaries. Independent third parties require a system that could help in achieving borderless and decentralized transactions.
This can only be achieved through a technology known as Blockchain technology. Blockchain is a peer-to-peer network with thousands of computers with electronic ledgers to verify and validate the transactions.
Nakamoto stated that “the cost of verifying and validating transactions through mediators increases the cost of transactions, limits the number of transactions, and cuts the possibility for casual transactions.” This led him to remove intermediaries and replace the bitcoin network as a peer-to-peer network that works on technology.
Undoubtedly in the first decade of bitcoin, all these concepts were followed, but at the end of the first decade, the original vision of bitcoin was compromised. The decentralization of bitcoin has given rise to centralization.
The bitcoin market now seems like a stock market, and it is said that the bitcoin investors that hold a great number of bitcoins and other cryptocurrencies are known to control the market of bitcoin. Bitcoin whales are known to control the price of bitcoin in the market. It can be seen that the technology of bitcoin has frayed.
There are many negative points in the bitcoin network, but these are balanced by the growth of a vibrant ecosystem of cryptocurrencies. This made increased the worth of the crypto market, and currently, it is approximately $5.6 trillion. Currently, thousands of cryptographies exist in the crypto world and are traded on crypto exchanges.
Current situation and future of bitcoin in next decade
Besides revolutions in the financial ecosystem, there are other multiple areas in the ecosystem of Bitcoin that investors are paying attention to. The current situation is that people are confused between whether bitcoin is a medium to carry out daily transactions and a store of value. Investors across the world are eager to invest in bitcoin and earn profit from the volatile market of bitcoin.
Still, people are facing the issues of security and scaling. Arguably, the biggest pitfalls that are in bitcoin lies with its security. Also, day by day, developers are working on networks to overcome the flaws of the bitcoin network as it will help in the payment mechanism of the bitcoin network to make technological improvements.
Bitcoin is also used widely to carry out international trade. Even both Tesla and PayPal are making investments in bitcoin in 2021. It’s all over the news that Tesla has invested around $1.5 billion in bitcoin. Many online businesses, gaming sites like ufabet, etc, started accepting bitcoin as payment options.
Still, everyone has fear about the future of bitcoin as it is quite uncertain, but it is definitely on the verge of becoming a mainstream asset. Institutional investors are driving their interest in cryptocurrencies, but there are various issues with a network of security, capital efficiency, and custody.
In today’s time, large banks and institutional investors are noticing bitcoin because of the high increase in its value. Extensive media coverage is encouraging early investors, and it is expected that the value of bitcoin will grow more in the future.