Bitcoin after 2021: The Future of Bitcoin and should I invest
What is the future of bitcoin? Will the cryptocurrency’s price value continue to rise, or will it plummet? Or better yet, should I buy or invest in bitcoins? These are some of the puzzling questions we all have after seeing bitcoin have a prosperous January start. And the price of this crypto-giant keeps going up even higher.
Not too long ago, cryptocurrency was only a subject discussed in the corners and small groups. Above all, most people believed that this ‘cryptocurrency thing’ was a sham. But we’ve all come to see it differently. That’s all thanks to the dozens of millionaires who owe their wealth to crypto. I’m talking about the Winklevoss Twins and others.
Now everyone is left wondering; what is the next step for the founding coin, bitcoin? And should you buy it? Well, if that’s your current predicament, this article is in your best interest. Keep reading on to find out more.
Bitcoin and Tesla
Recently, the world’s richest man, Elon Musk, announced that you can now purchase a Tesla with bitcoins. Musk tweeted that Tesla will be handling bitcoin payments through a system that operates on this crypto’s node. The nodes are computers that store transaction information about bitcoin in simple terms. He also said bitcoin payment would remain in bitcoin and not converted to fiat currency.
That was a true game-changer for most cryptocurrency enthusiasts. According to an article published on BBC, Tesla invested heavily in bitcoin, buying about $1.5bn worth of bitcoin.
And that show of confidence in this crypto made the price value sky-rocket to an all-time high. Since then, the price of bitcoin has been through the roof. Elon Musk has shown quite an interest in cryptocurrencies, including the meme crypto, Dogecoin. He only tweeted about the Dogecoin, and the price value shot to its all-time high.
Musk’s interest in cryptocurrencies is already causing a ripple effect in the crypto-world. Think about it for a second, imagine, the wealthiest man on the planet is interested in the one commodity you currently have in your wallet?
Tesla isn’t the first company to accept bitcoin payment, nor is it the last. Companies such as PayPal, Starbucks, Microsoft, AT&T, and KFC Canada, and other companies worldwide. That shows you that this crypto is taking over the fiat currency, which was bitcoin’s initial purpose. Nakamoto wanted to create a cryptocurrency that the world governments couldn’t manipulate or claim.
Bitcoin’s Halving Future
The total number of bitcoins that can be mined is 21 million BTC, and that it! After that, no new BTC will ever be created. Additionally, thanks to the halving system, the number of BTC mined reduces by half after roughly four years. The last halving happened in May 2020, and the next one is expected to be in 2024. Currently, you can earn a maximum of 6.25BTC after the halving of 2020.
The last mint of this coin is speculated to happen in 2140. Once all the coins have been minted, the network is expected to operate the same way today. But there will be a significant difference for the miners. Yes, the miners will still exist in this blockchain, but their reward system will differ.
Miners earn from the transactional fee and rewards as they solve a cryptographic puzzle. However, the transactional fee-only contributes around 6.5% of their income. The rest they earn from the tips. But in 2124, their income will shoot up to 100% from the transactional fee. Therefore, these miners will still profit from their contribution.
Another significant difference is that the coin’s price is speculated to go up. Even if the rewards are not as high as before, the value will remain. The miners are expected to incur low costs for the mining process; hence, they will have maximum profits from their endeavor.
Bitcoin’s Future Price
This coin’s price has been on the rise ever since its initial days. But the curve isn’t that straight. I mean, that’s an unrealistic growth. Instead, bitcoin’s price goes up and down with a more significant bullish trend over the years. And if history is to go by, this crypto’s growth is expected to go even higher.
Bitcoin/USD price (Retrieved from TradingView on 4th April 2021)
As you can see from the candlesticks, Bitcoin’s price has been on a bullish trend throughout, with several dips in the middle. And the price currently seems to have dropped slightly. However, most cryptocurrency enthusiasts still believe that this crypto will continue to sky-rocket, and it is set to be the next digital gold.
Bitcoin will not just be a payment mode; it will be as valuable or even more valuable than gold. That’s evident from its significant price increase over time.
Bitcoin has the means of becoming a global payment system. Today, millions of people are already using this coin as a means of payment daily, and there’s no sign of stopping. And as the popularity of this coin continues to rise, governments have no option but to make it a legal payment option. As a matter of speaking, global central banks are already working on digital currencies and incorporating these systems into their fiat currency thanks to bitcoin.
If it’s not already crystal clear by now, cryptocurrencies, including bitcoin, are on the verge of uniting our global currencies. Bitcoin isn’t controlled by the banks and governments, making it an even better investment deal. That means the governments can’t expose their citizens to added taxes or fees. Above all, the overall charges for global transactions through cryptocurrencies are significantly lower.
Take Away Message
Bitcoin might not have many features compared to its competitors like Ethereum and XRP, but it’s still the most widely adopted crypto. That’s because it was the initial coin in this field. More importantly, the coin still has an excellent ecosystem that impresses investors. All in all, bitcoin is a good investment choice for anyone who would like to join the crypto market.