In the past decade, cryptocurrency has leapt from an academic concept to become a reality. Bitcoin is currently the leading name in the crypto market with a cap that is reaching above 150 billion dollars to command a 68% lead ahead of others like Litecoin and Bitcoin Cash. In a single day, BTC averages a volume of more than fifteen billion dollars.
Bitcoin has captured a lot of attention from the media and investors in the time that it has been around. The currency was especially talked about in 2013, which is when it traded for its first significant value of 266 dollars. Over the years, BTC values have fluctuated with rises and falls here and there, but they have constantly remained above a ten-fold surge of the currency’s original value. With the topic of Bitcoin continuing to be a significant topic of discussion in the financial sector, questions are swirling on whether 2020 is the big year for the cryptocurrency. When determining whether to purchase some Bitcoin or hang on to conventional cash as it is, one has to assess the past and present patterns of the money. Like any other currency, BTC has its upsides and downsides that can be used to determine where to stand.
Bitcoin’s stand as an institutional currency that can be used like any other is continuously pushed by its provision of numerous advantages that accompany its use. Some of the notable benefits include:
- Increase in BTC casinos. Gambling commands a large piece of the entertainment pie in nations that accommodate the use of the currency. With the increasing use of the cryptocurrency to obtain services, Bitcoin games online have seen a surge in production to ensure that clients have an array of options to choose from. Like in other sets, bitcoin casino games are offered with demo versions to let players know what to expect from the games. The free Bitcoin games use usual fun credits, but when it comes to real money play, BTC replaces conventional currencies to make stakes. FortuneJack, 7Bit, BetChain, and Golden Crown are some of the leading BTC casinos. In 2020, the number of such establishments is expected to rise, which leaves gamblers with a lot of options.
- Steady rise. When Bitcoin was first traded, ten thousand of the coins were exchanged for two pizzas. Today, a single BTC trades for about 9390 dollars. This value has been rising steadily in the past couple of months, even though it is still more than 50% behind its all-time high value of 2089 dollars. Many financial analytics predict that this trend is bound to continue into 2020, which means that those spending on BTC today will be richer by the time the year comes to a close.
- Anonymity. When using conventional money, users have to disclose various details, such as their name, email address, and other personal information to facilitate transactions. No such information is required with the use of Bitcoin, which reduces the risk of financial or identity theft. Even so, BTC is not entirely anonymous. Each transaction carries a public address that links back to an exchange account that can be retraced using various network analysis approaches. However, it is impossible to identify who owns the BTC wallet, how much they have, or make transactions remotely without having their key. This element is not bound to change in the future, which makes it an excellent alternative to other money options.
- Absolute control. Bitcoin operates on a Blockchain, which allows users complete control of their transactions while maintaining a secure network. Usually, when using other options, one has to go through banks, credit card companies, and other third parties to carry out transactions. Bitcoin eliminates the use of such bodies and makes users their own banks with absolute say on the movement of their cash. In the gambling world, this advantage applies to both punters and casino investors. The blockchain on which the system operates continues to be subject to improvement, which will grant users even more control in the future.
- Transparent information. Even with the anonymous nature of Bitcoin when it comes to personal information, all transactions are usually open to view on the blockchain. Once a BTC transfer is finalised, it is linked to a public address that can be traced by anyone on the system. However, the sensitive data that comes with it, such as the person’s name is kept a secret. The publicity of transactions comes in handy when anyone wants to verify the legitimacy of the transfer, such as when purchases are being made. That way, the currency is free from manipulation by any party or government. Therefore, you won’t get duped out of your earnings.
- Low transactions fees. As of the moment, Bitcoin transfers apply little to no fees. Charges are usually included when one would like to make transactions fast. In the blockchain network, the higher the levy paid, the bigger the priority given to complete the transaction. Even so, it leaves the choice open of paying fees or not. With banks and credit card companies, on the other hand, fees apply according to the terms of the institutions without any control from the clients. This is one of the trademarks qualities of Bitcoin that will crossover to 2020.
- No inflation. Satoshi Nakamoto, the man behind this cryptocurrency, created it so that only 21 million of the coins could be in existence. Therefore, when this figure is achieved, no more BTC can be mined, which saves its users from inflation like ordinary currencies. Thus, even with fluctuations in value, there can never be too many Bitcoin on the market. Also, the fact that BTC cannot be counterfeited adds on to its continued value.
- Fewer business risks. As a merchant, Bitcoin transactions will protect you from potential losses that result from fraud. Cryptocurrency transfers cannot be reversed, which makes it possible to conduct business even in areas where crime rates are high without fear of being duped. One cannot be conned into thinking that BTC transactions have been conducted since they can be confirmed on a public ledger.
Bitcoin packs a lot of upsides that have made it the revered force it is in the financial sector. However, some BTC evangelists lean towards the belief that a lot of uncertainty surrounds the future of this cryptocurrency, which is pushed by factors like:
- Unawareness. Bitcoin has yet to attain the popularity of other currency forms, which means it has yet to be used in a lot of industries. It is uncertain how well-educated people will be about the currency and whether they will be willing to embrace it.
- Volatility. In 2017, Bitcoin reached an all-time high value of a little over twenty thousand dollars per BTC. However, it all came tumbling down, and the currency was worth about five thousand dollars within weeks. The fact that this currency is not controlled by the stock market, has a limited number of coins, and is continuously being demanded means it is likely to burst like a bubble anytime.
- Still in development. When compared to other currencies, Bitcoin is still in its infancy with new features and programs being added to the system to make to discover its full potential. Therefore, it still has a lot of issues to work out before it can stand steady on two feet.
Bitcoin is stated as the future of cryptocurrencies, but a lot of uncertainty surrounds the sector. Therefore, its future is highly debatable since it still faces a lot of limitations, but it appears capable of beating them with the current technological advancements. Therefore, like with any other investments, one should understand that they run the risk of losing their investments if the system crumbles. On the other hand, they stand to win if the price swings happen in their favour.