The most noteworthy cryptocurrency stocks in the future are "bitcoin (47.3%)", which accounts for an overwhelming percentage of 1 in 2 people, indicating the high expectations for the future. Desiring of Bitcoin Cryptocurrency was entangled with various factors such as growth in demand and regulations in China.
In June 2021, the surge that continued until the beginning of May had subsided but bitcoin is attracting attention as a brand with high potential in the future. Bitcoin (BTC) after 2022 is expected to exceed $130,000 in 2025.
Bitcoin (BTC) ETF approval
ETFs are the first acronyms for exchange-traded funds. Investment trusts linked to bitcoin price movements are bitcoin ETFs. It is currently only approved in Canada. When bitcoin ETFs were approved in Canada, transactions of hundreds of dollars were made in just one day, and it became a hot topic. Bitcoin is the key currency in the cryptocurrency world. In all existing cryptocurrency exchanges, bitcoin serves as the base currency.
Bitcoin issuance limit
Another reason for the increase in demand for bitcoin is its rarity. The maximum number of bitcoins issued is set to 21 million. On the other hand, the number of newly issued bitcoins decreases approximately once every four years. This is called a half-life, but this reduces the amount of distribution from miners. There have been several times in a place that the price of bitcoin increased after its half-life.
Bitcoin is limited to issuance in advance by the program, ensuring its rarity. Blockchain technology also prevents double payments and tampering with transaction history. These characteristics are very similar to gold. Bitcoin is often in high demand if there is an emergency in fiat currency.
Bitcoin challenges and the future
There is a point that it increases environmental destruction as a problem of mining. Mining is becoming more and more difficult year by year and requires more machine power by requiring complex calculations. Of course, electricity must be used to run the machine. In addition, mining consumes a lot of power because the node performs difficult calculations. It is said that the amount of power used to mine bitcoin is higher than that of small countries.
Talking about the Bitcoin mining, the overall number of Bitcoin miners hasalso increased in recent years, and more energy is used for mining. Cambridge estimates that more power than Chile consumes every year to maintain the bitcoin network. Resources are used as a way to generate electricity. To maintain the bitcoin network soundly, mining operators need to take measures such as using renewable energy. These problems with bitcoin are also subject to the development of various new technologies to solve them. Bitcoin is in the direction of improvement.
As a Decentralised ledger
Nodes are terms used in the world of information and communications. Cryptocurrency-like nodes such as bitcoin include smartphones and pcs that serve as a bridge between the network and users. Node roles include routing, blockchain database, mining, and wallet. In particular, the role of blockchain databases is a mechanism to realize blockchain as a decentralized ledger. You can also use nodes with mining capabilities to provide machine power and aim for mining rewards.
Bitcoin is trusted by people around the world because of its high security and transparency. There is also a "validation" process in which many users estimate that the calculation is correct.This is done automatically by people who have introduced full-node desktop wallets, but they are not rewarded because they only assign the information of the block to the function.
Finally, when it comes to investing in Bitcoins, this particular cryptocurrency has great value in "no issuer and has universal value", and its future is bright. However, it is also a reality that many problems need to be solved at present.
If such problems cannot be solved, it is undeniable that other altcoins may be ahead of them, and cryptocurrencies themselves may not spread. Interest in cryptocurrency investment is also increasing, and bitcoin is expected to become more major as one of the means of asset formation in the future. Let's continue to pay attention to the future of crypto assets (cryptocurrencies) with a platform such as Bitcoin Era.