For over a century, money was the sole legal tender throughout the world. And then Bitcoin came into being in 2009 and changed everything. It was a revolutionary idea that moved many people. The concept itself was unique and carefully designed. After over a decade since its launch, it has gained a significant value, and now a single bitcoin is worth $57,000. Will it keep growing and one day be adopted as a legal tender worldwide? Let us find out how it would look in future.
The futures for crypto currency looks bright, given many organizations have taken an interest in this phenomenon and are eager to invest. Microsoft has hinted at investing in digital coins, and Tesla also has a significant investment in bitcoin already.
New cryptocurrencies are being introduced in the market every day due to the increase in popularity. Fiat currencies have been deemed outdated and seem to confine the investors. The major success point for cryptocurrency will be the freedom it offers.
By the year 2035, the Majority of the bitcoins will be mined and traded. Many believe that it might take over fiat currencies by that year and become the global cash standard. The paper currency might be at the brink of extinction by then, with bitcoin value soaring around $1000,000 by that year.
Rise of Stable Coins
Facebook’s libra is one of the coins which may have a bright future. Many users will prefer Stablecoins as they offer very little volatility. Tether could be a major thing as well, it is currently holding a market cap of $4billion. The fee system would be likely to be abolished, and super-secure transactions might be available by then.
The cloud of uncertainty
The success of cryptocurrency is not guaranteed. It can be touching the height of success or become obsolete in the next decade. You never know. Not all investors seem to be interested in cryptocurrency due to the underlying issues. If any data breach happens and private data is leaked, it would push many people to the brink of poverty in a matter of seconds.
Government interventions may also cause problems for cryptocurrency. A state would like a centralized system rather than a decentralized system which cryptocurrency offers. It would cause a complete ban on crypto trading, and the coin will lose its value. Many countries, including Iran, have already banned trading with cryptocurrency.
The mining costs are very high as they consume a lot of electricity. A study showed Bitcoin consumes more electricity than Argentina.
The significant costs have discouraged miners as mining costs exceed the profit. They are mined where the electricity costs are low, and mining is profitable. If the cost of electricity bills keep increasing, miners will discontinue the work. It would result in more waiting queues for approval of a transaction and may not remain popular as it is now.
If cryptocurrency does not face bans or restrictions, it can be the first worldwide digital currency. It is much-needed innovations that keeps users away from seemingly endless bank tours and manage their finance.
If it does get banned worldwide, major losses will occur, and it would cause harm to an innovation. However, as time is getting by, many countries have seemed to accept it and would be unlikely to be banned.
In the year 2035, if things go smooth, they can be a big breakthrough in the economy. Bitcoin might reach the value of 500,000 or above with other cryptocurrencies right behind its shoulder.