bitseven.com - BITCOIN is set to rocket in value thanks to the power of Distributed Ledger Technology (DLT), a bitcoin analyst has predicted.
Bitcoin’s potential to revolutionise the world for the better is greater than originally envisaged when bitcoin was born ten years ago, believes Juan Villaverde, an economist and cryptocurrency analyst at Weiss Ratings.
The bitcoin expert believes DLTs will have a massive part to play in the future of money.
In its basic form, a distributed ledger is a database held and updated independently by each member, or node, of an enormous network.
The distribution is unique – records are not communicated to various nodes by a central authority but are instead independently constructed and held by every node.
Each node in the network processes every transaction, comes to its own conclusions and then votes on those conclusions to make certain the majority agree with the conclusions.
The architecture and qualities of distributed ledgers bypass the cost of trust accrued by banks, lawyers, banks and governments.
"Bitcoin was an overreaction to the financial crisis and to the monetary system that allowed the crisis to occur"-Juan Villaverde
Mr Villaverde predicts one of two future scenarios for DLT, a type of decentralised database for cryptocurrencies like bitcoin.
The first, and most likely, is the evolution of decentralised DLT will eventually replace most fiat currencies.
The second could see governments adapt DLT to create a digital version of today’s fiat monetary system.
Scenario One: Decentralised DLT
Public open ledgers and their native cryptocurrencies like bitcoin begin to replace the fiat currency system, and a growing share of the public transitions from government-issued currency to public cryptocurrencies.
Although initially resisted by governments, they eventually they accept the new reality and recognise these new forms of money as legal tender.
A select group of cryptocurrencies becomes dominant, thanks to superior technology, the most practical applications and the broadest mainstream acceptance.
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