As a digital currency, cryptocurrency is developed and managed thru the use of modern and high-end encryption techniques.
From an academic concept, cryptocurrency has become a reality. This is especially true when bitcoin was introduced into the market in 2009.
Since then, its client base has been growing. In 2013, for example, it had captured a significant number of investors and caught the attention of people from other walks of life.
While it has gained more than $2 billion, it recently plunged. Due to that, it has raged a debate about the future of the crypto-market.
The Future of Cryptocurrency
Some experts believe institutional money would enter the crypto-market. Economic analysts say the possibility of floating cryptocurrency on the Nasdaq is higher than expected. Over time, this would take the credibility of the market into a different level.
Other experts believe that cryptocurrency of any size and niche requires a verified exchange-traded fund (ETF).
How does it work? Investing in bitcoin and other related cryptos are complicated. With ETF, the process of investing in cryptocurrencies would be swift, seamless, and convenient.
Understanding Bitcoin
Among the top cryptocurrencies, bitcoin is on top of the list. As a decentralized currency, this crypto is packed with peer-to-peer technology.
This technology is tailored to enable all functions, including transaction processing and currency issuance.
Yes, the decentralization renders the cryptocurrency free from government interference and manipulation.
However, there is no central authority to guarantee that things run as smoothly as possible.
Created digitally thru a mining process, bitcoin requires stable and powerful computers to solve crunch numbers and complex algorithms.
Fiat currency, on the other hand, is backed by the credit and full faith of the government.
As a highly centralized activity, fiat currency is supervised by a specific country’s central bank.
Although banks are responsible for regulating the amount of currency issued, there’s no upper limit to the amount of currency issuance.
Generally, local currency deposits are insured against bank failures by a particular government body.
On the contrary, bitcoin doesn’t have support mechanisms.
Future Outlook of Bitcoin
Over the years, the future outlook for the cryptocurrency has raised debates among experts and economists.
Kenneth Rogoff, professor of Economics and Public Policy at Harvard University, suggests that the sentiment among crypto advocates is that the market capitalization of cryptocurrencies could significantly skyrocket in the coming years.
While the crypto market might get panic over the historic volatility of the asset class, Rogoff says there’s nothing to be afraid of.
Compared to physical gold, the use of bitcoin is limited to transactions. This makes the cryptocurrency more susceptible to collapse.
Some Popular Bitcoin Alternatives
While bitcoin has created internet visibility over the world wide web, other alternative cryptocurrencies have been introduced into the market. What are the other solutions you may try? Litecoin is another cryptocurrency that has been creating a buzz. As bitcoin’s leading competitor, Litecoin, is tailored for processing smaller transactions more seamless and quicker than ever.
Another crypto you can take advantage of is the Ripple. Launched by OpenCoin, Ripple is both a payment system and a currency. As a digital currency, Ripple enables the transfer of funds to another user within a few seconds.
In bitcoin transactions, the process usually takes around 10 minutes, which is quite long.
Mintchip, on the contrary, is a smartcard tailored to hold electronic value, which can transfer it from a chip to another with a higher level of safety and security.
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