In the digital era, electronic payments have made rapid strides. In recent years the real discovery in this regard has been cryptocurrency. Cryptocurrency is a digital asset used as a medium of exchange. It originated in 2009 and has gained immense popularity since then, but it has also been associated with illegal activities such as gambling and tax evasion.
Nonetheless, crypto-currencies like Bitcoin still hold prospective growth and work as a medium for smooth and discreet expenditures across state boundaries for the people.
New assets like Bitcoin really represent commodities that can be likened to oil. The future of Bitcoin as a cryptocurrency doesn’t seem to be very bleak as it’s a commodity that you need in order to fuel applications. Moreover, we are increasingly seeing apps being built around it. So, that’s really where one can start to see more exciting opportunities as we go into the second half of this year.
Bitcoin, a type of Digital Gold
With sufficient liquidity, Bitcoin can be easily integrated into the financial ecosystem that we all use for ETF stocks, bonds, and commodities. Bitcoin is used as digital gold today basically and if someone wants to outlay systematic risk then one would go to assets like gold or digital gold. As investors are looking for uncorrelated assets we would suggest our investors that Bitcoin is two thirds a safe haven (like digital gold) and one third like a tax stock.
Blockchain Technology
One of the most fascinating things for many other sections of businesses is the core system of blockchain. The blockchain technology affords transparency, as well as the capability of providing a mutual view of all the transactions which occur within the technology. This combined with the not-easily-hackable system further makes blockchain a striking technology.
The way blockchain technology is evolving and becoming mainstream is a sign of changing times. Blockchain technology has become the enabler for Bitcoin, making it work and making it scalable, regardless of its volatility. However, there is a need for a commonly agreed communication procedure among different blockchains and if this happens, things will get even better going forward.
Conclusion
What would be the future of cryptocurrencies like Bitcoin? This is the question which dwells in every investor’s mind right now. This idea of a decentralized financial system, separated from the unreasonableness of the economic market and the harsh propensities of the governments and banks, is in no way going into vain.
Moreover, Bitcoin has some distinguished benefits like it is the first crypto-currency which has succeeded in gaining extensive recognition and has so successfully built its network. If the concept of crypto-currency is going to work long-term then Bitcoin would be the first to have that breakthrough. The day is not far when we won’t have to rely on national banks for overseas transactions. Bitcoin will bring the world closer without question.