Bitcoin is a decentralized and peer-to-peer digital currency. It was developed as open source software in 2008 by a pseudonymous developer who goes by the name of Satoshi Nakamoto. The currency is not issued by any central authority, so there are no banks that can inflate its value or control it’s supply.
Because Bitcoin operates without these regulations, it can be used for almost anything that cash or credit cards cannot. For example, anonymous transactions and paying for personal goods anonymously on the internet.
In this infographic from Cash Nexus we look into what Bitcoin forecasts have been made over the past few months and how they compare to reality. We also look into what the future may hold for Bitcoin and its users.
How Many People Use Bitcoin?
As of today, there are approximately 10 million people who have used bitcoin and one million businesses that accept Bitcoins as payment. The payment processor Bitpay is currently enabling merchants to accept bitcoin and immediately convert their bitcoins into regular currencies. This process is done by partnering with 4,500 banks around the world which makes this system possible. This has made it easy for businesses to begin accepting bitcoins since they can immediately be converted into traditional currency through Bitpay’s service.
Bitcoin price eyes two significant levels
Bitcoin has experienced a significant price increase in the past two months. The price reached a low of $250 on February 14th. This low price was a far fall from the highs seen in December when the price rose above $900. The chart below shows the recent rally and where the next major resistance may be considered. The current rally has brought Bitcoin’s market capitalization to approximately $7 billion USD and its trading volume is at an all-time high at over 5 million bitcoins traded each day on average.
While we have already seen some major real world applications of Bitcoin, there are still many more developments being made which will pave the way for further adoption and usage of Bitcoin in everyday life. The following are just a few of the upcoming developments and the projects behind them.
Bitcoin ecosystem: This is an open source software system which enables users to create their own bitcoin wallet, send and receive bitcoins, as well as save them on an online wallet. The main developer for this system is Gavin Andresen.
This is an open source software system which enables users to create their own bitcoin wallet, send and receive bitcoins, as well as save them on an online wallet. The main developer for this system is Gavin Andresen. Ripple protocol: This is a peer-to-peer payment system which is open source. The main developer for this project is Ryan Fugger and Jed McCaleb.
What are the current predictions made on the growth of Bitcoin?
It is predicted that the price of Bitcoin will rise exponentially from April 2022 onwards. Finder.com performed a study on the growth of Bitcoin’s price and they found that it was incredibly easy to predict the future growth of Bitcoin based on past trends. They anticipated the price of one Bitcoin would reach $96,000 in 2030, which is a 662% jump from the current price of $462.35. It is also projected that the value of one Bitcoin could be as high as $5 million by 2033.
An analysis report by Autonomous Next states that “The number of bitcoin transactions has been growing exponentially in recent years and this is likely to continue as it becomes more convenient and widespread. When faced with rapidly expanding transactions and a limited supply, the price will probably increase. In theory, the growth in transactions could be as much as a thousandfold over the next few years.”
What are people saying about Bitcoin?
The European Central Bank has announced that it is working on developing its own digital currency. The major features of this currency would include the ability to store more money securely and more easily make payments across borders. The ECB has already revealed that it will not be involved in regulating Bitcoin at this time and plans to keep pressure on all companies that deal with Bitcoins.
The chairman of the US Federal Reserve, Ben Bernanke, has stated that the government does not currently have a way to control Bitcoins and their value could be driven by speculation. He also states that Bitcoin is a “real threat” and said that he would be open to regulating it.
A report from the Federal Council from Germany says that Bitcoin should be regulated as a currency because it is not backed by any country or central bank so there are no rules in place for its value to fall. The same report also states that Bitcoins can cause financial instability since it has no legal foundation and is based on speculation. The report also believes Bitcoin should be outlawed because of its anonymous nature which can be used for illegal activity like money laundering.