Future of bitcoin, cryptocoin and cryptocurrency by Sachin Mandloi

Bitcoin prices have risen more than 400% this year yeilding one of best YTD return for an investor, but where bitcoin is headed from here ?

When I woke up this morning, I realized that a lot of people are wealthier than they were before they went to sleep last night.

Reason? Bitcoin exchange price crossed $5000 marked for the first time in bitcoin history.  Bitcoin prices have risen close to 400% this year and have yielded magnificent year-to-date (YTD) results for any investor in bitcoin.  This new high of more than $5000 was expected because of a large number of factors including the technological improvements which bit coin recently implemented and also growing interest of investors and businesses in bitcoin and crypto currency. I personally would not be surprised in bitcoin surpasses this new high and sets a new fresh high level of $6000 by the end of this year.  This looks more possible because of the November tech updates for bitcoin which are promised to go live somewhere in the November this year.

Crypto currency I personally believe is the biggest change for this century or I would say several past centuries. While there are people who are in favour of this and there are people are against this, who would be proven right, only time can tell.

cryptocurrency space has been gaining significant attraction and become more and more visible. A large number of businesses have been exploring the potential uses of these digital assets, and many companies have already started to hold initial coin offerings (ICOs) just like initial public offerings (IPO). As of now this all looks nothing more than innovative gimmicks to raise the funds and enter into the untamed crypto currency space.

From Apple to Ebay, From Amazon to other e-commerce websites they all have started to accept the existence of bitcoin and crypto currency. If my memory serves me right, there are musicians who are selling their albums for bitcoins. Are we In the middle of a change which would define the way we transact in future?

We have not seen how the world was when people used to barter for a living, we were not there when people used to transact using gold, silver and copper coins, we were not there when the first currency coin was introduced. Also we were not there when the first technology test took place.  If today we consider our lives are good in every terms its all because of the technologies which were put to test a long decades or centuries ago. For example electricity, trains, flights, phones, etc. Imagine our modern life without them. We have accepted all the changes on a mass level.

Having said that in favour of bitcoin of crypto currency, lets also accept the fact that bitcoin and crypto currency is still a emerging technology or trend. For bit coin to become actual modern money it needs to be accepted everywhere for any kind of purchase. Whatever the cryptocurrencies are they must become very simple and  convenient to a layman so that even a layman can use it easily. One of the biggest hurdle for crypto currencies is the time it takes to process the transaction.

As of today, if you want to pay someone using bitcoin it can take up to 60-90 minutes for your payment to get processed.  Nobody will wait for that long when you are in a store buying beers or food or when your car needs a refueling on the move.

This is because bitcoin transactions are authorised or approved by the decentralised network of bitcoin miners. The transactions are pushed in blocks and the maximum size of a block is 1 MB. That means only two or three transactions per second, this numbers is very low when you compares this with VISA or MasterCard where they process 2-3 thousand transactions every second.

However, A widespread global cryptocurrency is still a fantasy. Everybody wants to have a global currency which is liberal and free from the rules and regulations or banks and their charges and also which is freely moveable to any part of the globe without any government regulations.

  • Sachin Mandloi

Declaration: Views expressed by Sachin Mandloi here are his personal views and do not reflect views of the organisations he is working with.

[Important note: I do not recommend any investments in the bitcoin, cryptocoins or tokens. This is very risky as the market and technology which runs this is largely unregulated. If you are considering it, then you should be prepared to lose your entire investment.]

Author: Sachin Mandloi

I'm a technocrat and entrepreneur. I've co-founded a couple of weird companies and will probably co-found a couple more.

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