Over recent years Bitcoin has had a habit of defying expectations. Since its dramatic 2013 price rise it has held level in spite of the constant predictions of naysayers that it’s just a fad, that regulation will catch up and that it will ultimately fail.
Yet today, bitcoin is used seriously in a wide range of roles, including everyday transactions, venture capitalism, currency exchange, charity and even dedicated bitcoin gambling.
The future of bitcoin is now the subject of intensive debate. Will this success continue, or will it soon be a thing of the past?
The block-chain technology underpinning it is undeniably revolutionary, but some have suggested the success of the technology may overtake Bitcoin itself.
But while some of the advantages of the decentralised system may be adapted by the mainstream in the future, a lot of Bitcoin’s success lies in its role as an outsider to the conventional financial system.
Indeed much of its criticism also stems from this point. Some countries and territories have banned its use, while others have been quick to point out that payment and consumer protection rights don’t apply.
Likewise its potential for anonymity makes it attractive to black marketeers and those wishing to hide their online purchases. That in turn makes it a target for regulators and opens it to calls for clampdowns on its free use. However the anonymous nature of Bitcoin is itself a subject of debate.
Another threat to Bitcoin is also one of its most exciting aspects. There is an increasing threat of conventional currencies moving to a cashless system, removing the facility for individuals to store their own money away from the threat of negative interest rates and transact without fear of monitoring.
Bitcoin presents one possible escape from that, in being a currency not beholden to the will of any central authority and, at least for the moment, largely anonymous. If the prospect of a cashless economy does come on line in the future, that could well be good news for Bitcoin and other crypto-currencies.
on the other hand, its unregulated nature and the speculation over its future does leave it open to wild price fluctuations. That volatility may settle as it becomes more established and if it becomes widely accepted as a mainstream means of transaction, but until then having money in Bitcoin has the potential to lose, or make, the holder a lot of money, depending on how well it fares in the future.
Ultimately Bitcoin’s future is at the mercy of a lot of external factors, particularly government regulation and economic policy, as well as the development of the system and potential competitors. However currently Bitcoin is an unchallenged force in this space, and in a time where the use of money is rapidly changing, that status gives it the potential to grow massively.
Already it is being taken increasingly seriously, with Bitcoin ATMs in operation, major retailers accepting it and blockchain technology being seriously pursued by mainstream institutions. There is still a great deal of growth ahead if it is to become a permanent, established medium of exchange, but some recent news has been very encouraging.
Ultimately, whichever way it goes, it’s exciting to watch and be involved with something with so much potential to radically alter the way we do business. Bitcoin is one great example of how technology has radically altered economics in the internet age, and whether or not it ultimately succeeds, it and the technology it has brought into widespread use will undoubtedly continue to disrupt and reshape the world.
That alone seems reason enough to be optimistic.
Reddit this article ↓