Bitcoin can be referred to as digital gold. For instance, Bitcoin can’t be created arbitrarily, and it demands a lot of effort to “extract.” And, just like how gold should be extracted from the earth, Bitcoin should be mined through computational methods.
When it was introduced to the world nearly a decade ago, Bitcoin was expected to be a revolution in the finance industry. However, that revolution hardly became true. The cryptocurrency’s tumultuous first decade was marked by missteps, scandals, and wild price swings.
Though the slump in Bitcoin’s price this year earned it tons of criticism, investors and cryptocurrency enthusiasts are being optimistic about its future, including investment, trade, and betting. In addition to these, they are reading BetOnline reviews and several other reviews to find the best betting opportunities. That being said, the coming decade could prove to be pivotal to Bitcoin’s existence.
Institutional Investors Enter the Game
While trade figures for individual investors are down in several cases, institutions are jumping on board for the first time efficiently. Institutional investors allow for comparatively larger trading volumes than most individual investors, meaning the industry can still sustain itself with few trading partners transacting in the digital currency space.
Numerous potential developments are projected to take place in 2021 that will significantly impact institutional participation in the digital currency market. If crypto is floated on an exchange, for instance, Nasdaq, it will immediately get a boost in reputation and likely value.
One of the biggest trends in the crypto community is joining farms and mining pools due to the decreased reward the miners get. This marked the rise of mining on a large scale and even as an industry in the crypto arena. Furthermore, since then, there have been many mining farms being established as start-ups and companies around the world.
Thanks to mining happening on a large scale, it will be pretty competitive to works as an individual miner on the blockchain network, and in general, the network will prove to be more saturated.
Stablecoins Take the Lead
Stablecoins are digital tokens that are linked to a fiat currency that acts as hedging mechanisms against the prospective decline of underlying cryptocurrency collateral prices.
In fact, these might even be the crypto industry’s best bet going forward in 2021.
Later in 2021 and 2022, stablecoins might see growth, primarily for two reasons—as a result of long-term instability of non-centralized tokens and the tether, the current leader in the stablecoin industry’s projected to be dethroned.
Being one of the earliest stablecoins to have gone mainstream, Tether (USDT) has gone through several highly publicized growing pains as the sub-industry developed. Other stablecoins have already hit the field, aiming to snatch away its dominance.
Currently, a noticeable trend in the Bitcoin arena is the adoption of Bitcoin and other cryptocurrencies by the government, businesses, and non-profit organizations. Governments that see significant demand from companies and institutional investors regarding BTC are especially looking for ways to control and regulate the crypto market.
Fortunately, the majority hold a favorable position when it comes to Bitcoin. In terms of businesses and non-profits, there are many popular brands that stand by and support Bitcoin as a preferable way of obtaining their goods and services. A few examples include Tesla, Etsy, Home Depot, The Water Project, Shopify, and many others.
What is next for the future of Bitcoin?
It is pretty challenging to predict which digital currencies will witness dramatic price gains going forward in 2021. However, you can be pretty confident about the fact that cryptocurrency is not going away anytime soon.
The underlying technology behind many cryptocurrencies, blockchain, has grown far outside the digital currency realm and is likely to witness new applications this year. Regulators and governments will continue grappling with how to best facilitate and control digital tokens.
What’s more, the heyday of cryptocurrencies might have come and gone, but it is possible that the crypto market still has many upsides coming. There was a time when cryptocurrencies were positioned to upend the entire financial system. And that sort of noise never goes away overnight. So, be prepared to hear from cryptocurrency, or at least its best enthusiasts, for another year.