Technological Developments in the Bitcoin World from Past to Present
With more than 10 years of existence of Bitcoin, the leading decentralized digital currency has not only made positive disruptive impacts in the world of finance but has also appealed to significant investors and media houses.
Created in 2009 by pseudonym Satoshi Nakamoto, Bitcoin became a hub of attraction in April 2013 when it rallied to a record $266 per Bitcoin after recording 10-fold in the previous two months.
However, the digital asset has recorded a significant parabolic rise since then. At press time, Bitcoin price is at $38,200 having hit an All-Time High (ATH) of $64,800 in April.
Disruptive Impacts of Bitcoin
The emergence of Bitcoin has fundamentally transformed the concept of money. From paper cash being centralized and controlled by the government, Bitcoin has proven that financial transactions can be decentralized and less controlled.
More than other times, there is growing adoption of Bitcoin and other cryptocurrencies because of their attributes.
Unlike conventional banks where customers pay stamp duty and other multiple billings yet taking days for cross-border transactions to be completed, digital asset charges no fee as the transaction is completed in real-time.
It is noteworthy that Bitcoin equally eliminates the service of third parties in the course of effecting financial transactions through blockchain.
Given the significant technological developments occasioned by digital assets, tech giants and institutional investors now invest huge funds in cryptocurrencies having seen potentials enclosed in digital assets.
For example, the investment of Microsoft, Dish, Microstrategy, Tesla, among others, in cryptocurrencies are noteworthy.
It is instructive to note that Bitcoin is an integration of finance and technology. Its reliance on blockchain technology that makes its operation largely decentralized and secured has continued to be a reference point for the global financial system.
While Bitcoin had undergone a series of challenges and clampdown from state actors, its ability to weather the storm had convinced many people that it holds a great deal of value in the future.
The technological advancement brought by Bitcoin into the world of finance is one sterling quality that will not be forgotten so soon. It appears that Bitcoin, otherwise called the future of money, holds more tangible values to behold.
Future and Prospect of Bitcoin
Given the performance of cryptocurrencies since inception, several financial experts have expressed bullish views on the future of Bitcoin.
In this regard, a certified financial planner and founder of Delancey Wealth Management, Ivory Johnson, remarked that Bitcoin will disrupt traditional financial institutions because of its capacity to affect cross-border payment without any hassle.
Speaking on a 50 years projection, Johnson maintains that Bitcoin could be the world reserve currency given the rising adoption of technology.
Frederick Kaufman, a leading finance author, also corroborates the view of Johnson by claiming that Bitcoin will dominate the world currencies including the dollar by 2071.
He justified his claim with the premise that all currencies would have undergone encryption by then.
Similarly, Dan Egan, the vice president of behavioral finance at Betterment posits that cryptocurrencies such as Bitcoin will grow to an unimaginable level in no distant future having proven itself to have an edge over fiat.
Meanwhile, the incredible growth of Bitcoin and other cryptocurrencies have endeared many countries to developing a Central Bank Digital Currency (CBDCs).
Recently, the Bank of England and Her Majesty (HM) Treasury inaugurated a taskforce to work out modalities on the United Kingdom’s CBDC.
While the Chinese digital yuan is on its verge of completion, the Bank of Japan has also rolled out plans to execute a one-year trial of digital currency.
Given the foregoing, only time will tell if the bullish projections made on Bitcoin and other cryptocurrencies will yield.