The Present and Future of Bitcoin, Cryptocurrency, Blockchain Technology - ENCX

The term cryptocurrency is obscure with many being confused over its usage. Bitcoin is a kind of cryptocurrency that has gained huge market share and popularity amongst the finance experts. It can be referred to as virtual money or a digital cash system that protects the anonymity of transactions. The virtual currencies most probably Bitcoin has captured the imagination of the rest of the world.

The main difference between Bitcoin and monetary system is that it is decentralized with no central entity monitoring transactions. This has raised huge speculations that if there is no central authority, who will validate the transactions? This is where the blockchain technology has come into the picture. In order to understand future of Bitcoin, let us understand the technology that is supporting the most popular form of Cryptocurrency.

What is Blockchain?
The blockchain is the life support of decentralized cryptocurrencies. It is a process which enables the system to function without any central authorities. In short, it is a kind of public ledger where all confirmed transactions were recorded in a permanent and unalterable manner. To make things simple, easier and protective, blockchain is all about confirmation. As there is no central authority to verify the transaction and state that it is legal the system simply asks all entities instead. A Bitcoin transaction can take up to one hour to be completed. Once the transaction is approved by all the relevant parties, then the data is added to the public ledger also known as the blockchain which can never be changed again.

Who approved the Blockchain transactions?

We know that each transaction is approved by the relevant parties to be completed. So you might be guessing who will approve the transaction, as Bitcoin is not run by a central authority. There are miners who are the most important individuals in the cryptocurrency process. They check the transactions by their validity and labeling them as legit and adding it to the blockchain. These miners are the users of Bitcoin. They will be rewarded for this process with a token of their cryptocurrency. This is cryptocurrency is created and worked smoothly without any security threat.

The Chronicles of Bitcoin
It all started in 1983 when the American cryptographer David Chaum conceived an anonymous electronic money called ecash. In 1995, he implemented it in digicash which was a form of electronic payments that used encrypted keys which are untraceable by the banks, the governments, and the third party as well. Then in 2009, the first decentralized cryptocurrency is created by Satoshi Nakamoto. He started the transactions by ordering pizza through bitcoins which slowly gained popularity. Thus, in 2011 after gaining huge popularity, Bitcoin form its dominant role as the leading cryptocurrency in the market.

Recommended Read : The Mystery and Unknown Facts about Bitcoin
Incredible Bitcoin Stats
Since its inception in 2009, Bitcoin has changed the value according to the user’s demand. With the popularity of bitcoins on roar, it’s value has risen dramatically. The only problem with Bitcoin is that it is very much volatile and according to Mark T Williams, it had volatility seven times greater than gold. That’s massive.

The demand of cryptocurrency is increasing, so does it value. It is estimated that 16.8 million Bitcoin was mined by the miners and it has to cap the limit of 21 million. This means 80% of bitcoins have now been mined. According to experts, the bitcoins will be capped somewhere around 2040 but with the ever-fluctuating rates, the experts can never estimate.

Changing Values of Bitcoin
The year 2017 was the successful year for Bitcoin as it has surpassed the $1000USD mark. Then the success was triple in May when it has reached the $3000 mark to crossing $4400 in September. The currency has seen a sharp spike in value. Then the currency has reached the unbelievable mark of $7450 USD in November and for the first time, this achievement has been attributed to the announcement by the Chicago Mercantile Exchange to offer Bitcoin futures. But the Bitcoin value has been changing in response to certain events.

It cannot be denied that there has been more fluctuation in bitcoins. We cannot sure that it will remain the same. On January 16th, 2017, it has created massive chaos when the market price of a single Bitcoin dropped down below $12k within a day. The collective cryptocurrency market was suddenly lost its value up to $200 billion. There are several reasons behind the sudden market drop, but the real cause is still a speculation. One of the biggest reasons for the dropping price is the China and South Korea’s attitude towards Bitcoin users.

China which houses the majority of Bitcoin mines in the world recently announced to shut the Bitcoin mines. The only reason for closing these mines is the excessive energy needed for mining. It is also reported that the Chinese authorities are planning to block the cryptocurrency as they are suspected to involve security risks.

On the other end, South Korea also followed China’s footstep and banned the cryptocurrency exchange. As South Korea is the largest cryptocurrency markets in the world, it promised to send major ripples across the system if the government decided to implement the ban.

Thus, the volatility of Bitcoin is the possible cause of its ban by the two countries. The ban also sent the user base into a frenzy enough to drop the value at alarming rates within a day. The estimated loss by all cryptocurrency was roughly estimated to $40 million and has been dropping steadily since then. There are also rumors that US and France will also allege to ban the cryptocurrencies in near future.

What to expect in coming years?
For the past years, there are several major breakthroughs in the blockchain technology. The most notable of which is the Oracle’s cloud-based blockchain service which was launched in October last year.

The rise of Bitcoin technology has sparked the interest of other industrial sectors including:

Cybersecurity
Automation
Finance
Insurance
Although blockchain technology has a lot of potential applications, it remains untapped and will remain untapped we use Luna dating service for finding the connections via block chaining and spend cash on virtual platforms. We can see a fast-growing cryptocurrency market where Bitcoin is the dominant player. However it is mostly involved in trading, there are lots of innovative and hardcore coders who can create investor applications for the filed. The best example of this can be the Facebook groups.

Apart from the two prohibited countries China and South Korea, the banning of cryptocurrency exchange will be seen as a drastic change in the share markets. There are few companies which are migrating to new countries or closing down since China cut down the mining process. In short, it is safe to say that we can expect a very interesting future from Bitcoin.

Conclusion

Bitcoin too has competitors including Ripple, Zcahs, steller and any others. The experts concluded that Bitcoin and Ethereum are going to stay, while they just cannot estimate the future performance of other cryptocurrencies.

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