As Bitcoin celebrates its 10th anniversary, there’s no better time to look back and reflect on the world’s first digital currency. How has it evolved, and how is it likely to change in the future? Though Bitcoin still has a long way to go before it overshadows the dollar, the status quo is shifting in fascinating ways.
With that in mind, here are five interesting questions about the future of cryptocurrency, as well as a few predictions.
1. What’s the Predicted Value of Bitcoin in 2020 and Beyond?
Several experts in the tech industry have shared their predictions about the future value of Bitcoin. The creator of the McAfee anti-virus software, John McAfee, made a prediction in 2017 that by 2020, Bitcoin would reach a value of $500,000. By the end of 2017, however, he changed his price prediction for Bitcoin to a whopping $1 million by 2020.
With the highest value of Bitcoin resting at $20,000, McAfee’s prediction suggests an increase in value by 4900%. This may seem like an outrageous wager, but since the price of Bitcoin increased by 2000% in 2017, that kind of boost in value isn’t completely out of the question.
2. Will Cryptocurrency Remain Free From Government Interference?
Cryptocurrency operates through blockchain technology, where no one institution or agency controls its value. Instead, the value of Bitcoin and other forms of digital currency depends entirely on how much investors will pay at that specific point in time. For this reason, the true value of cryptocurrency is constantly changing.
That said, the entire point of cryptocurrency is that it’s free from government regulation and interference. This, of course, comes with a long list of pros and cons, but it’s the one aspect that makes cryptocurrency unique, effective and worthwhile for investors. If Bitcoin continues to grow, this hopefully won’t change.
3. Will Additional Alternatives to Bitcoin Surface?
There are currently three notable alternatives to Bitcoin: Litecoin, Ripple and MintChip. While all three companies all operate on a similar idea of a digital form of currency, they have their own unique characteristics that set them apart from the biggest cryptocurrency service.
For example, Litecoin focuses on speeding up the process of completing smaller transactions, while Ripple focuses on increasing the speed of transfers in any currency. MintChip is the most similar to Bitcoin in terms of functionality, but it’s actually backed by a form of physical currency — the Canadian dollar.
Taking this into account, will additional Bitcoin alternatives surface? Maybe, but they’ll need to have a defining characteristic to gain any amount of traction. Our bet is that Bitcoin will continue to dominate the digital currency market for many years to come.
4. How Will Cryptocurrency Work With Lotteries?
Cryptocurrency complicates some money-related systems and procedures, such as the lottery. It’s possible to play the lottery using Bitcoin, but you’ll need to go through a third-party service in order to do so. As cryptocurrency rises in popularity and acceptance, there’s a slight possibility that people will be able to purchase lottery tickets directly using Bitcoin.
However, this process will likely hinder some areas of how the lottery functions, such as the charitable aspect. Certain proceeds of state and federal lotteries will go toward specific causes chosen by voters. If cryptocurrency were an accepted payment method for lottery tickets, it could affect the amount of money these organizations and groups actually received.
5. Will Bitcoin Still Be a Good Investment in 2020?
By 2020, experts predict that Bitcoin will reach values as high as $1 million. As long as you’re ahead of the crowd in terms of when you decide to invest, you’ll likely come out on top. Stay educated on the trends and weigh your decisions based on how quickly Bitcoin and other methods of cryptocurrency have increased in value in past years. While every investment comes with a significant risk, 2020 could be a potential “sweet spot” for cryptocurrency investors and other tech companies interested in transitioning to a digital economy free from government control.
Invest in Bitcoin While You Still Can
Just like any other technological advancement our modern society has seen, Bitcoin provides the opportunity for a few people to become very rich. It’s all about being at the forefront of the mining and development processes. If you’ve been considering investing in Bitcoin, get on board before everyone else does if you want to make the most significant economic impact.
Kate is a health and political journalist. You can subscribe to her blog, So Well, So Woman, to read more of her work and receive a free subscriber gift! https://sowellsowoman.com/about/subscribe/