What will be the future of Bitcoin?

Posted By Darren Winters on Dec 18, 2017


What will be the future of Bitcoin?

What will be the future of Bitcoin (Cryptocurrency)?

That is likely to be the topic of much discussion at many dinner tables this festive season.

For those Bitcoin aficionados who reserved their place early on the crypto mania rocket, they will be keen to lead the conversation with their upbeat view of the future of Bitcoin, perhaps even the future of money. Bitcoin enthusiast (turned investors) see themselves as futurists, as rebels with a cause, they feel smug in the knowledge that they have broken free from the herd mentality, they have figured out that Bitcoin’s stellar rise is a vote of no confidence in the status quo.

What is the future of BitcoinWhatsmore, cryptocurrency pioneer investors have profited from a jaded centrally controlled fiat money, backed up shaky debt and nothing intrinsic.

So Bitcoin is not a fad because it has functionality. Cryptocurrency enables people to transact globally using the same currency and opens new markets. It has transparency, blockchain means that every transaction is recorded on a global digital ledger and visible to anyone with a smartphone/computer.

Bitcoin has portability, it enables people to move funds across borders, thereby bypass capital controls. So cryptocurrency is a useful vehicle for moving assets out of a region which is experiencing a monetary crisis, civil war etc. Precious metals have limited portability due to metal detectors at borders. Moreover, Bitcoin is finite, it can’t recreate centrally and devalued into oblivion.

But does Bitcoin really have a bright future-is cryptocurrency the future of money?

That is a question for Bitcoin’s creator (worth in excess of $6 billion) yet nobody knows who that is. It is one of the biggest mysteries in technology, financial world.

What could be the motive behind cryptocurrencies?
Bitcoin kills a number of birds with one stone. It is the first global currency for a global world. Moreover, It provides law enforcement with a record of all transactions on the network and their identity.

The idea that users of Bitcoin are anonymous is a complete myth.

Every computer on the network has an IP address which traces back to a user identity. Every individual, company has to provide their internet provider with proof of identity before they are provided with an IP address. That then becomes their digital footprint on the internet. You can bounce off other servers making it a little more difficult to be monitored, nevertheless you can’t hide your digital footprint (even if you alter your settings in the browser) eventual your identity will be traced.

Moreover, all firewalls with the highest commercial level of encryption can be hacked by the NSA.

The highest level of encryption is held (guarded) by the intelligence agency it is not commercially available, the banks don’t have access to this level of encryption. There is also a strict export control on cutting-edge encryption technology. There are instances when the US Government has refused to share dual application technology with even its closest of allies such as Britain.

So Bitcoin cryptocurrency is hackable and the idea that it is gangsters favorite currency, that the future of Bitcoin is on the dark web (a kind of rat trap) is false. Think about it. Al Capone caliber types are probably going to prefer US bank notes (with no metal strips) bundled onto a private jet and sent to wherever rather than use bitcoin and leave (digital) footprints.

So the real creator of Bitcoin could be the NSA.

As a store of value Bitcoin has appreciated by 1,640 % YTD. But it is too volatile to be used as a currency. Who wants to spend Bitcoin when it is appreciating so much. So the future of Bitcoin is where the rubber hits the road, in other words where cryptocurrency meets futures. The futures market is where the banks will manage (rig) bitcoin’s price all in the interest of “price stability”.

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