First and foremost, let’s discuss what a bitcoin is.
A bitcoin is a decentralized virtual currency. By “decentralized,” that means it doesn’t physically exist and isn’t attached to a central bank like the Federal Reserve. Bitcoins were designed to be limited in number, totaling only to 21 million. However, some do not think there is a limitation because bitcoins can be b into tinier units of bits with 1 million bits in 1 bitcoin. They could also be divided up to eight decimal places, and to even smaller units.
Bitcoins in 2017
This time of the year, the price of a single bitcoin has increased ten times. It has reached the $10,000 level, which means one bitcoin, ladies and gentleman, now costs $10,000. The software has been upgraded, but there is a controversy circulating the improvement.
The upgrades tagged problems along with them, and now there is a need to look for a long-term solution. One of these issues, and probably the biggest one, is that the popularity has revealed a hidden issue with Bitcoin’s database. Bitcoins could only process a limited number of transactions at a time, which means the network is overcrowded and the proceedings are now costly. Now, everyone is dying to know how this problem will be solved.
However, we can’t deny that bitcoins are an innovative system that still has a long way to go despite the finite number of Bitcoins available and the controversial case with Bitcoin’s database.
Bitcoins in 2018
Data experts believe that Bitcoin’s price will increase to $14,000 in 2018. Its value has received financial attention from a broad audience, and its worth has surged up to 1,000% since January 2017. Because of this, there is a possibility that the price of a single Bitcoin will continue to escalate, making it ideal to invest in Bitcoins next year.
Different tech-savvy groups have suggested a few solutions to the finite number of Bitcoins, but the answers are either short-term or disadvantageous to old Bitcoins. More solutions are also expected to be analyzed at the beginning of 2018.
Furthermore, users of Bitcoins might double because of its impressive value this 2017. Businesspeople, ordinary individuals and even the U.S. Treasury might consider using Bitcoins by 2018, seeing that the cryptocurrency’s growth was bigger than its declines throughout the year.
So, what are we to expect next year? Probably more investors and more firms accepting Bitcoins as a form of payment. Everything has its perks and drawbacks, but whether or not you’ll invest is entirely up to you.
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