In recent times, cryptocurrency, often known simply as crypto, has experienced a remarkable surge in the financial world and gained wider acceptance as a viable monetary form utilized for purchasing and investment purposes. Above all, such transactions are performed over a secure digital network known as the blockchain, which enables easier access and a safer environment than conventional monetary systems and is not subject to regulations by an overseeing authority like a bank or government body.
Hundreds of cryptocurrencies have been mined over the blockchain. However, a few stand out. One of the more popular forms has been Bitcoin. That said, its users, as well as financial observers, wonder if the Bitcoin price will continue rising and what factors carry the potential to impact the ultimate answer to this question.
Life is Good…Thus Far
Crypto market insiders credit the ascension of Bitcoin, which was first introduced in 2009, to certain favorable circumstances led by the limited amount of Bitcoins circulated. Only 21 million tokens will ever be produced and circulated. Therefore, as the available amount of said currency keeps decreasing, its demand will increase, heightening its value. Moreover, Bitcoin enjoys name recognition, which has resulted in the monetary form gaining wider acceptance in the retail and investment arenas on both the domestic and international levels.
Potential Game-Changing Factors
Specific concerns carry the potential to significantly influence Bitcoin’s relatively charmed existence. Financial industry professionals believe that certain issues pertaining to the blockchain may prove crucial to Bitcoin’s future.
One of the more intriguing discussions centers around the topic of decentralization. Like other crypto forms, Bitcoin creators intended for individuals to control and manage it. Recently, however, a higher percentage of tokens have been purchased by businesses and other large entities. When more centralized establishments hold a greater quantity of currency, they likely possess the ability to exercise greater influence over how it is regulated. This circumstance is only expected to go on if Bitcoin continues to hold value as a profitable investment.
Those in the know express a belief that scalability might play a role in Bitcoin’s destiny. Scaling refers to the blockchain’s capacity to process the amount of traffic occurring along the platform. Some time ago, the Bitcoin community established protocols limiting the traffic its position on the blockchain can handle. The crypto form can currently process only six to eight transactions per second, which is far slower than those completed by other digital currencies.
Bitcoin faces future uncertainty due to underlying security worries. The blockchain remains one of the more secure avenues for conducting financial business. That said, Bitcoin users access their accounts and perform transactions using private keys, especially for them. Sophisticated cyber criminals employ untoward scams and harmful programs like ransomware to bypass these safeguards. Bitcoin’s legacy might be threatened if cybersecurity industry officials fail to stay on top of these developments and respond accordingly.
Government regulatory oversight at the national and international stages could also impact Bitcoin’s future standing. Crypto remains an unknown quantity to the world’s countries. As they gain a better grasp on the industry, said entities might exercise greater control over it.
The halving factor cannot be overlooked either. This process occurs when the blockchain cuts the block reward in half. Typically, Bitcoin’s price has risen following said events because the availability of the crypto form decreases further. Industry analysts, however, cannot say with any certainty that this trend will continue indefinitely.
And the Verdict Is?
Crypto market insiders stress that Bitcoin may witness a slight decrease in value but continue to remain a viable asset to purchase and invest in over the short term overall. However, said professionals offer a certain degree of reluctance when asked to peek into the digital currency’s future one, two, or even three decades from now because too many yet-to-be-determined factors enter into this discussion.
