We are living in a world where cryptocurrency is fast becoming a normal and accepted part of financial life. It’s not so long ago that we would consider that cryptocurrency was the domain of the tech geeks, but no longer. There are a great variety of options when it comes to choosing which cryptocurrency to use, but the one that comes to mind for most of the public is Bitcoin. Let’s take a look at the future of the most famous of all cryptocurrencies.
Where Did Bitcoin Come From?
Bitcoin burst onto the scene in 2008, and the world had never seen anything like it. Using mathematical theory Bitcoin was the first cryptocurrency, and it used a revolutionary technology known as a blockchain. Developed by an unknown person or group of people using the name Satoshi Nakamoto, Bitcoin used a decentralized ledger, a first in any currency system, to operate and users ‘mine’ for coins by solving complex mathematical equations. Solving these equations also is what offers security. The result is an autonomous, secure, and decentralized system.
What is Going on Now?
Bitcoin has become more mainstream than any of the other cryptocurrencies, being the first it has gained such a prominent position. You can use bitcoin to purchase goods and services from a variety of retailers and businesses. At first, this was only online, and with small alternative businesses, but the currency has taken off even mainstream places such as Starbucks are taking it as payment. You will need to use a provider to hold my Bitcoin wallet and facilitate your payments.
Difficulties with Bitcoin
The difficulty with Bitcoin is that the mining process is becoming more difficult to get substantial returns from as more people become active in mining them. How the process works are that new Bitcoin is released every 10 minutes on the system, and this limited amount is fixed with more miners chasing them, the amount you can mine for the same effort is diminishing.
Where to Now?
All of this has changed the nature of what Bitcoin is. Like anything, as it becomes more mainstream, the nature of it has altered. As we mentioned, it is becoming more accepted as a method of payment in many places, and this trend will likely continue. Having such a mysterious and secretive start and subsequent existence it is unlikely we will ever see Bitcoin go public and float on the stock exchange, it is not even a corporation. The future of Bitcoin most likely comes as a method of payment, rather than an investment as the expanding popularity is likely to increasingly decrease its value. Eventually, its value will probably level out leaving Bitcoin as a more stable and widely usable currency. There are many other cryptocurrencies on the market, however, none will ever capture the imagination like the first did.