Ten years is a long time, or so did a lot of people think when Bitcoin was created, but today the pioneer cryptocurrency is already 10 years old. It has even started the journey of another decade with a lot of expectations lined up ahead. In the past 10 years Bitcoin has been through so many ups and downs. It has passed through so many hurdles that are characteristics of an innovation of such a magnitude. Having come this far, the question on the lips of many is, what will become of Bitcoin in the next 10 years?
Before diving into the future and what we expect of Bitcoin in the next 10 years, let us take a moment and consider some of the things that the world’s first cryptocurrency has achieved so far. After 10 years of existence, here are some of the achievements that can be attributed to Bitcoin:
- Bitcoin has reached an all-time high of $20,089, although it is trading at $8,264 at the time of writing.
- Several other cryptocurrencies have been forked out of Bitcoin, including Litecoin and Bitcoin Cash
- Over 36 million wallets have been created on the Bitcoin network
- There have been two Bitcoin Halving events, with the third one expected to take place next year May (2020)
- Scalability issues have positioned Bitcoin more as a store of value, rather than a payment system.
- After much criticism, Bitcoin is becoming more adopted both as a technology and as a monetary system.
There are many more milestones that have been achieved by Bitcoin so far, all of which are indicative of what could be expected from the innovative technology in the coming years.
A simple search on the internet will bring up a lot of predictions about how much one Bitcoin would cost in the years to come. However, to arrive at a particular Bitcoin price, several factors are involved. It is these factors that contribute to the price of Bitcoin and other cryptocurrencies. Let’s take a closer look at some of these factors.
Growing Awareness of Bitcoin
The Bitcoin gospel is spreading like wildfire. The number of people who learn about Bitcoin continues to grow on a daily basis. This is reflected by how often the word “Bitcoin”, and other related topics are searched on the internet. More people are becoming curious and interested in the new money system, either as a transaction vehicle, or an instrument of investment. All these play their roles in what will become of Bitcoin in the next 10 years.
Increased Adoption of Bitcoin
There is evidence that more people are beginning to join the Bitcoin ecosystem. The increasing number of Bitcoin wallets being created is evident of this development. People see Bitcoin as a more convenient way of making payments or sending money across different regions. There are those who see it as a safe place to store their wealth, especially in countries with weak and unstable financial systems. The looming recession that is staring us in the face is another reason why many people are looking for a safe place for their wealth. Bitcoin seems to be providing a viable alternative for this.
Bitcoin is Digital Gold
One major characteristic of gold is the sustained value that it has carried over the years, and its tendency to continue to appreciate in price, considering the fundamental economic laws of supply and demand. In the digital world, Bitcoin has assumed the position of digital gold. It is obvious that Bitcoin is still in its early years. In addition, it is an entity that has limited supply. This implies that over time, there is a high tendency that the economic laws of supply and demand will play a role, reflecting a continuous appreciation in value, just like gold.
Bitcoin is realizing it unique identity
After Bitcoin, many other cryptocurrencies have come into existence, with some of them being forked out of Bitcoin. As a matter of fact, the motivation behind some of the newer cryptos was to address some of the weaknesses of Bitcoin, especially in the area of scalability. Even the anticipated Facebook Libra coin is designed as a payment system. This presents a situation where Bitcoin is gradually assuming more of a store of value, an identity that even the industry seems to be appreciating at the moment.
The factors above have given rise to various expectations for Bitcoin in the coming years. Some of these expectations are revealed in the way that the Bitcoin market and the elements involved are already shaping up. The Bitcoin ETFs, and other innovations like Bakkt, are opening up the market for institutional investors to assume their anticipated position in the industry. This signifies a setup for more adoption and an influx of volume in the industry.
Happening at a period when the supply rate of Bitcoin is expected to be reduced by another 50% simply proposes a hike in price, if the economic laws of supply and demand are obeyed. It is developments like these that have given rise to the various predictions that we have seen in the Bitcoin price. Depending on the analyst, we have seen both modest and wild predictions. However, on average, it is quite conservative to expect that in 10 years time, Bitcoin’s price may just well be in the 6 figures.
While price is important, everything about Bitcoin does not end with how much it goes for at a given time. As mentioned above, many cryptocurrencies have come into existence, and Bitcoin seems to be settling into the unique position of a store of value. This is an important role, especially with the continuous breakdown of the traditional financial systems around the world. We look forward to seeing what will become of Bitcoin in the next 10 years.