Since acknowledged formally as “proper currency” in 2010, owing to its acceptance by merchants, such as Expedia, WordPress and Microsoft, Bitcoin has come a long way. In the past one year, value of this form of cryptocurrency has soared from around $400 per bitcoin to almost $1400. Though the adoption of bitcoin and other types of cryptocurrencies is far from being widespread among the mass, experts are of opinion that these alternative currencies have exceptional growth potential.
Bitcoin Growth: The Key Drivers
The highly encrypted nature of bitcoin transactions distinguishes it from any other digital currency exchange process. Owing to a fool-proof coding system bitcoin users are assured of the fact that each transaction or money transfer would be safe and minus the risk of personal information leakage. Furthermore, platforms embracing secure and encrypted practices such as Belfrics are making bitcoins an increasingly popular digital currency and encouraging newcomers to step into the field of bitcoin trading with greater confidence.
Unlike the convention currency systems that are controlled, monitored and regulated by specific authorities, the flow of bitcoin is entirely dependent on market demands and the value is determined on the basis of bitcoin exchange rate.
While elaborating on the ways in which bitcoins could shape the future of global economy, experts have suggested that compared to traditional currencies, cryptocurrency features more adaptability to match the demands of funding through digital currencies. They are of opinion that Bitcoin and other cryptocurrencies will revolutionize the traditional methods of bringing communities closer through peer-to-peer (P2P) transaction and crowdfunding platforms.
What’s The Situation Now?
Cryprocurrency market gurus are of opinion that by the end of 2017, value of bitcoins would reach almost $3900 as more people and enterprises would embrace this form of digital currency as their preferring methods of trading and transactions. In the first week of July 2017, the trading value of bitcoin was $2,540, which indicates almost 100 percent rise than its trading value in 2016 fiscal. Another report suggests that in the first half of 2017 fiscal, bitcoin’s gain is 168 percent and might end the year with a note as high as $4000.
Many experts are of opinion that the year 2017 would be a landmark in the history of bitcoin’s evolution due to its exceptional performance. On one hand, they are predicting that in the middle of its “corrective 4th wave” the value of bitcoins may fluctuate and fall to $1900 margin, which indicates a 25 percent drop from the current rate. On the other hand, they continue to assure investors that despite such fluctuations investors will enjoy significant return on investment by the end of the “fifth wave”.
In addition to providing such bright picture, market strategists have emphasized that there is a remarkable possibility, where bitcoins might replace gold as the prime medium of exchange and investment. Based on the observation that cryptocurrencies, in many cases, are preferred over gold by investors, they are indicating that the future of global trading will be dominated by “digital gold”. Factors, such as convenience of storage, lack of government intervention in reducing currency’s worth and investor anonymity, are considered as primary contributors that would amount to the widespread popularity of bitcoin and other kinds of cryptocurrencies.
In order to assure investors that such claims are not mere hypothesis, market strategists have created several simulations that provide a realistic growth projection of bitcoin and other cryptocurrencies. According to this simulated model,
- By 2022, per unit bitcoin value might go up to $20,000 to $55,000
- The supply of bitcoin would slow down owing to its high demand
- Central banks would incline more to the idea of purchasing digital currencies, provided their total market value exceeds $500 billion
These findings clearly indicate that the time is ripe for investing in bitcoin as there is no sign of its value falling in the near future.