Where are Bitcoin and Cryptocurrency taking us? What is the Future with Digital coins?
Cryptocurrencies are digital currencies, which are developed, as well as managed via deploying cryptography, which is sophisticated encryption techniques. According to the latest survey conducted by the Coinbase, many students in the United States regard Bitcoin as a big boost for the economy.
About 18 percent of the survey respondents said that they have either owned in the past or own Bitcoin or any other form of digital currency. The rate is twice as that of what America’s general population hold or held in the past. Thus, the result of this survey seems to indicate that the adoption and owner of Bitcoin as a currency can go up in the future.
Students are frequently perceived as the trigger for technological and cultural change. The biggest social network in the world, Facebook was also made exclusively available to only students initially and eventually found adoption by the masses, especially among the youth population on the planet before being accepted by the older generations.
Future of cryptocurrency and Bitcoin
At present, cryptocurrencies typically face a few limitations. One such demerit is the risk of the elimination of an investor’s digital fortune if a PC crashes or when a hacker or a fraudster ransacks a virtual online vault. However, limitations like these can be combated through certain technological advances. It is also true that with their increasing popularity, there could be growing scrutiny and regulation imposed by the governments, which can have a detrimental effect on their basic principle of decentralization.
It is true that the recent times have witnessed a steadily growing number of merchants and traders accepting digital currencies, these cases are still in the minority. Widespread acceptance among the worldwide customers is a must if cryptocurrencies want to have a greater stake in the economy and financial system of the countries.
If a digital currency nurtures serious aspirations to be included in a nation’s mainstream financial system, it has to fulfill any diverse criteria. Firstly, the virtual currency has to be arithmetically complex so that attacks and fraudulent activities of the hackers can be avoided and simple to understand for the customers. It also has to be decentralized while ensuring customer protection adequately and also protect user identity without encouraging tax evasion practices, money laundering activities, as well as, other corrupt activities.
Is it sensible to invest in digital currencies?
In case you are contemplating to invest in digital currencies, you need to treat this new investment too in the same manner in which other investments of speculative nature are being treated. Cryptocurrencies are quite volatile meaning they are subject to very high price swings. This, in turn, makes them a highly risky proposition for their investors. For instance, the value of Bitcoin declined to 130 USD for 260 USD within a short span of just 6-hour on 11th April 2013. In case you are willing to bear such type of high volatility,
However, if you are not willing to take up such high volatility, you need to opt for other investments that are less speculative. The debate is still on about Bitcoin’s advantages as a medium of investment with an equal number of supporters and detractors. While the supporters of the currency feel optimistic about its restricted supply and increasing usage as major perks, its detractors feel that it is simply a bubble.
If cryptocurrencies seriously desire to be an integral part of the mainstream financial structure of the economy, they have to fulfill a lot of criteria as mentioned before. Although such a possibility seems to be remote as on date, something can be claimed for sure. The success or the failure of Bitcoin in combating the challenges and roadblocks can determine the fate of other digital currencies in the crypto space in the years to come.