Nowadays, the world goes through interesting times. Everything changes, starting from our way of life, and finishing with the financial situation and world authority shift. A lot to process, right? So, it’s fine that so many people are concerned and are asking questions about the future. Financial stability is one of the main topics, and in that niche, cryptocurrency is one of the top focuses.
What will happen to Bitcoin? What is the cryptocurrency of the future? What is the future of cryptocurrency mining? The answers are uncertain and only involve forecasting and comparing the current situation to the similar times. In this article, we’ll give you some knowledge about crypto in general and help you understand what may happen after the crisis ends. Let’s see what is the future of crypto in more detail.
What Is the Future of Crypto: Understanding the Bitcoin Situation
Bitcoin’s main asset is also the main doubt of a lot of investors. It’s a decentralized digital currency, meaning there’s no authority like a central bank or another institution that controls it. There’s protocol and nothing else. Even the creator or group of creators under the nickname Satoshi Nakamoto aren’t in control of the system.
While it’s good considering there’s no artificial inflation, some investors doubt crypto is that trustworthy since there’s no one responsible for its changes. You’re given no guarantee every operation will run smoothly when buying Bitcoin. One day, blockchain may just crash and disappear, and if you have thousands of dollars there as an investment, they will perish. Good news is, there’s no clear danger at the moment.
Will the current crises and investors’ doubts lead to the end of this crypto in the near future?
Well, there’s a 21-million upper cap that should be reached by 2,140. And after that, the price may rise even more due to the fact that no new coins will be mined. This doesn’t sound like something that’s about to end, right? Cryptocurrency has gone through a lot of ups and downs, but after every crash, it rose up and its price got even higher. So when trying to answer the question ‘What is the future of cryptocurrency?’, one thing is clear – it will exist no matter the crisis.
What Is the Future of Cryptocurrency Mining: May 2020 Halving
Coins are digitally created using the process called mining. Anyone can become a miner if they have a powerful computer and special software. On the average, 25 Bitcoins are created every 10 minutes.
In May of this year (2020), miners will experience the third halving. It means the reward for mining every new block will be decreased in half. At first, it was 50, dropping to 25 after the first halving, to 12.5 after the second one, and it will drop again to 6.25 this spring.
It happens to prolong new Bitcoins’ life. Unlike fiat currencies, BTC has an upper cap of 21 million, as we already know. So, every 210,000 blocks, the amount of coins miners get as a reward drops. Usually, it happens in about 4 years.
So what is the future of crypto? Will this change the price of Bitcoin? Not necessarily. Less than a year after the first halving back in 2012 made the price had increased by over 280%. After the second halving in 2016 the changes weren’t so drastic. This time, we really can’t predict what will happen. Following the standard trends, BTC price will drop for quite some time, and within the following year, it will rise again, exceeding the current numbers.
After the March drop due to the COVID-19 panic, we can’t be sure the trend will be followed, though. Most experts say BTC price may rise slightly prior to the event.
For miners, the changes are clear: their profit will be lowered by 50%. To compensate, owners of mining machines should work on finding places where electricity is cheap or using alternative sources. A lot of electricity goes for mining, and usually, the costs are covered by the profit and fees from those who rent powerful machinery. Starting from May, miners will need some ingenuity to stay within the right spending to profit ratio.
What Is the Cryptocurrency of the Future: Will Bitcoin Still Be #1?
What is the cryptocurrency of the future? If you confidently answer ‘Bitcoin!’, you might be wrong. Some crypto specialists say that Bitcoin won’t be the most used digital currency in the future. But it’s not clear what coin will become the leader. Nowadays, there are lots of famous cryptocurrencies like Ethereum and Ripple, as well as less popular like Tron, Neo, Iota, Dogecoin, etc. Maybe it will be one of them or a new coin will shoot up and become the ultimate #1.
The range of predictions as to what is the future of cryptocurrency is enormous. Even speaking about the near future when the current crisis ends (hopefully it will happen in the near future), different financial specialists estimate Bitcoin cost from $5,000 to $100,000. Maybe the higher numbers are a bit sarcastic, but these forecasts show that there’s no definitive strategy or algorithm now. Feels like earlier we were in a demo version, and now we’re in a real game, which is very unstable.
That being said, there’s one thing we know for sure – cryptocurrency will live. This market is independent from the stock market or currency exchange rates. It’s only defined by the users’ ability to mine, buy, and operate it. What is the cryptocurrency of the future? That’s a question for another post.
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