Cryptocurrency is a type of digital currency which is produced and is being handled through powerful encryption techniques using Cryptography. Bitcoin being, launched in 2009, there is a huge transition of cryptocurrencies from the virtual world to reality. Bitcoin’s became very powerful and popular in recent years, It got big investors and media attention towards it in since April 2013. It got a peak creating a record of $266 per bitcoin and after that, it shored 10-fold in the recent two months. Here in this article, we will provide you with our take on cryptocurrency in India | Future Of Cryptocurrency in 2022 and Beyond.
When Bitcoin was at its peak its market value was more than 2 billion dollars, but immediately there was a 50% decline in the market value of Bitcoin, which was triggered after a previous discussion on the future of cryptocurrencies in general. It was also asked that the alternative currencies will replace dollars and euros and will be used as a common currency? or are cryptocurrencies just a trend that will go away with time?
Future of cryptocurrencies
According to some economic analysts, they believe that institutional money will be entering the crypto market which will cause a ridiculous change in the market. Moreover, there is a chance that crypto in future can be listed on Nasdaq, which will be providing legitimacy to blockchain and also its features which may make it a traditional currency. And according to some of the trade experts, a confirmed ETF is needed by the crypto world. An ETF would make it easy for their customers/consumers in investing in Bitcoin. But to invest money there is a need for people to invest in cryptocurrency.
Fundamentals of Bitcoin
It is a decentralized currency that currently uses peer-to-peer technology, which allows the network to perform every operation such as transaction processing, money issuance and verification also. When decentralization frees bitcoin from manipulation of governments, that particular time also means to say that there is no centralized authority that will ensure the proper functioning of bitcoin and the value of Bitcoin.
Bitcoins can be made digitally by a process called mining which needs the use of powerful computers which will be able to solve very complicated algorithms and manage crunch data. In the present time, they are being generated at the rate of 25 Bitcoins per 10 minutes, which will reach a market cap of 21 million by the year 2140.
These features distinguish Bitcoin from the common currency, which is supported by the full credit and confidence of the government. The issue of fiat currency is highly centralized by the government and is also overseen by the central bank of the country. The central bank can also control the flow of credit in its country by some restrictions on the other banks. Moreover, the deposits made in local currency can also be protected by the government agency. On the other hand, Bitcoin does not inherit any of these functions. The price of Bitcoin is entirely determined by the investors, what they are ready to pay for the Bitcoin at any one time. And if a Bitcoin exchange fails then the clients working with Bitcoin will have no way to recover the bitcoins lost.
The Future Of Cryptocurrency in India
Based on the current restrictions and sanctions that bitcoin is facing, it is still the fact that anyone’s digital fortune may be destroyed if the user’s PC crashes or the virtual vault can be looted by the hacker, which in time will be expressed by technical breakthroughs. By the increasing popularity of cryptocurrencies, we can analyze that the more popular this currency the more restrictions and regulations it will have to face which will be erasing the core foundation for their existence.
In that time the number of retailers accepting cryptocurrency has grown sharply but they remain a small percentage of the population. To make cryptocurrency extensively utilized, first, they will need to earn consumers’ approval. But, they will be very complex when compared to the traditional currency they will repel for most of the individuals, with an exception of technological savvy.
Should You Really Invest in Cryptocurrencies?
If you are making thoughts about investing in other cryptocurrencies then you are required to move towards your investment in the same manner as you do towards your Business activities. Or else we can also say that you need to adapt to the possibility that you can also lose most of your investment or you will also be able to make a huge amount of money by just using cryptocurrency. As we have also recently been told, a cryptocurrency has no intrinsic worth other than a buyer ready to pay for it at any time.
This also makes it one of the extremely endangered as there are large price movements, which will most probably only increase the chance of loss in your investment. As you already know, on 11th April 2013 Bitcoin fell from a price of 260$ to a price of 130$, just in a small period of six hours. If you will not be able to handle this big loss then, you are suggested to look for other investments where you will be investing in your money with a small loss that will perfectly fit you.
Final Thought
The huge development of bitcoin has brought a discussion to us over-thinking the future of bitcoins and other cryptocurrencies. Despite the challenges faced recently, bitcoin’s popularity since 2009 has also encouraged other cryptocurrencies such as Ripple, Etherium, Litecoin, Dogecoin and many others. A cryptocurrency that is trying to be a part of the financial system’s mainstream should have a variety of requirements to fulfil. There should be no question in front of you regarding the success or failure of Bitcoin, which is coping with the problems in a good manner and, surely, it will significantly have an impact on the future of the upcoming cryptocurrencies in the next few years.
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