The Future of Bitcoin in 2018 has many people fascinated. Bitcoin is a Cryptocurrency introduced in 2009 by Satoshi Nakamoto, that is currently gaining fame due to its skyrocketing prices. In 2017, the price of Bitcoin elevated from a humble $998 to apex price of $19,800. Every Investor is intrigued by the overwhelming returns of 2000%. However, its price on 8th January had taken a plunge to $16921. So will Bitcoin be able to sustain its growth in the upcoming year?
Let’s have a look at some of the important aspects of Bitcoin:
- Bitcoin is completely Decentralized with no server or central authority. Every person has a record of all transactions of Bitcoin. Every transaction recorded by miners gets added to the Blockchain.
- Miners have to find a hash of a cryptographic function to add the transaction to the blockchain. In return, they are rewarded with a small token of Bitcoins. A huge amount of computing Power is spent by the miners to find hash before others.
- An insane amount of Energy is spent on mining Bitcoins. It is estimated that amount of energy to mine bitcoins is more than the energy consumption of entire state of Norway.
- Before becoming an investment option, It was widely popular among Hackers who used it as a tool to demand ransomware.
- It is the Father of cryptocurrency- One needs to exchange Bitcoin to buy any other form of cryptocurrency (except Etherium). They cannot be directly purchased.
- It cannot be exchanged legally with real-world currencies such as USD or Rupee. Bitcoin is rarely accepted as a payment option in any trading market.
- RBI has presaged people that trading in Bitcoins is completely Illegal in India. Bitcoin is under the scanner for regularisation in many countries.
- After deep analysis of current market trends and study of Cryptocurrency, It is to be noted that price of Bitcoin is extremely Sensitive.
- Top Economists and industrialists have presaged to stay away from the hype of cryptocurrency. Its price is completely determined by the demand of the people. If there are no buyers, its value can be potentially zero. However, its value will never be zero as the criminals and the hacking community will always find it as a utility tool.
- Its structured in such a way that only 21 million Bitcoins can exist. Post that, mining Bitcoins will not be possible. So as we reach closer to that number, its demand can take another soar. However, Government is supposed to be vigilant this time to avoid any havoc.
- Many other cheaper cryptocurrency alternatives to Bitcoin are available. Currently, Bitcoin is too expensive for investors. Expecting similar returns in this year can be termed as foolish. The newer forms of cryptocurrency such as Ripple and Monero are reaping benefits. Ethereum, second largest cryptocurrency after Bitcoin is at its apex price and still many times cheaper than Bitcoin. So a meticulous study of market and current trends is required and suggested before trying hands on cryptocurrency.