An Expert Predicts, Bitcoin Would End Up in one of Three Ways
July 13, 2018 12:22 pm
Bitcoin has found its popularity on a massive level even if it is nine years old. Bitcoin has gone through so many regulations, and recently it shocked the world by reaching towards $20,000 in its price growth. But eventually, it started falling off towards $5,000. Some experts predicted Bitcoin would reach $50,000 soon and some say it would drop to zero. Anyhow, recently Smith told the future of Bitcoin has three possible consequences.
Possible Scenarios of Bitcoin
Smith’s first outline examines Bitcoin replacing fiat currencies all over the world. Meanwhile, BTC becomes the de facto payment means for all types of transactions such as mortgage payments, import duties, etc. Well-known “techpreneurs” like Jack Dorsey (Twitter and Square) and Steve Wozniak (Apple) thinks that Bitcoin would become the single global currency within the next decade.
The second way is that Bitcoin to become new gold. So in this stage, BTC will not be replacing any fiat currencies but in failed economies like present-day Venezuela. It could become a highly valuable commodity where investors could protect against stock market crashed.
The final estimation for Bitcoin is that its value falls dramatically and becomes worthless in the process. Eventually, the popular cryptocurrency is left to the junkyard of failed digital revolutions.
The way of Shortest Resistance for Bitcoin
Smith thinks that the second scenario is the path of least resistance for Bitcoin. His analysis is convincing, to say the least; there are few flaws in the logic behind the choice. For one, Smith accepts only two parameters – the BTC/USD exchange rate and the USD inflation rate – as the basis for his analysis.
Based on those two parameters, Smith thinks that Bitcoin is doomed to become like gold. He brings up the limited supply argument but ignores the fact that BTC is divided up to eight decimal places.
The chief security scientist at Thycotic, Joseph Carson, thinks that Bitcoin death situation will be most likely the trio.
“The most likely scenario is that bitcoin will die; my current valuation of bitcoin is approximately US $43 as opposed to the hyped and manipulated valuation. Unless Bitcoin can become more efficient at mining, and more stable overall, it is likely to die. These higher mining costs and the fact that more retailers are failing to accept bitcoin as payment – as they are unable to convert it as it is too expensive – will mean the end of it.”