What is the future of Bitcoin?
The "Fear & Greed Index" hit a 16-month high in March 2023, a similar sentiment to July 2021 when all seemed reasonably well and we were mining away without a care in the world. Then, it all changed and for many reasons, we've been having a difficult ride with volatility in Cryptocurrency pricing since.
However, in mid-March 2023, Bitcoin closed at around $28k for the first time in 9 months. In fact, this March we’ve seen Bitcoin's biggest weekly gain (+26.11%) since April 2019. 4 years ago, almost to the month.
This excitement has naturally triggered some bold claims, with well known BTC supporter Balaji claiming that "1 Bitcoin will be worth $1M+ in 90 days". While you can come to your own decision whether you believe that or not; most see it as highly unlikely), there are some important factors to take into account when reasoning why a BTC "whale" might be predicting a steep trend in growth.
But to understand this, it's important to know why Bitcoin was invented in the first place, where it stands in terms of market capitalization (compared to other, well known stocks), and where the technology is headed.
Today, then, we're looking at the future of Bitcoin.
The Future of Bitcoin
A key aspect that has drawn investors to cryptocurrencies, particularly Bitcoin, and particularly in today's economic circumstances, is their perceived resilience against inflation compared to traditional fiat currencies such as the U.S. dollar. Inflation, the gradual erosion of a currency's value over time, leads to rising consumer goods prices. Most economists argue that some inflation is beneficial for the economy, prompting governments like the U.S. to issue more currency than necessary for years.
In contrast, Bitcoin has generally appreciated at a faster rate than the U.S. dollar has depreciated, skyrocketing from near-zero value in 2010 to over $20,000 by late 2020. Despite the volatile market causing significant fluctuations, Bitcoin's overall trend has been upward, making it an increasingly popular hedge against fiat currency inflation.
Bitcoin's primary defense against inflation lies in its finite, predetermined supply and the gradual reduction of new bitcoin creation over time. The total number of BTC is capped at 21 million, with the mining reward halved every four years, ensuring a predictable and limited supply with an increasing cost of production. Meanwhile, J.P. Morgan estimates that the Fed could end up injecting up to $2T in new liquidity into the US banking system. Facing a risk of hyperinflation as the worst possible case scenario, investors tend to rush to assets that are typically "protected" against inflation. Gold is the obvious asset, but People are investing in Bitcoin as a hedge against inflation as well.
This prestigious list encompasses a diverse range of assets, such as public corporations, precious metals, cryptocurrencies, exchange-traded funds (ETFs), and more. This is of course why experts often make the statement that BTC is undervalued. Bitcoin is steadily ascending the hierarchy of the world's most valuable assets in terms of market capitalization.
Bitcoin in Development: Technology
The global emergence of cryptocurrencies heralded the widespread acknowledgment of blockchain technology, but, its potential extends much further than the distribution and storage of value. Blockchain technology is an impressive, decentralized database system that is seeing a huge and growing use case potential. Flux, originally a fork of Bitcoin now offers WordPress and application hosting, and notably, Cloud storage. All because of blockchain technology.
As we witness the unfolding of 2023's emerging blockchain trends, they are poised to catalyze substantial changes across the international business arena. Not only does blockchain technology serve as the foundation for digital currencies, but its extensive utility as an advanced database tool is projected to boost the global economy by $1.76 trillion by 2030, as reported by this PwC study.
Blockchain technology has a wide array of applications that are transforming various sectors in unique ways.
Here are some notable examples:
Value Chains: By facilitating traceability throughout supply chains, blockchain technology enhances efficiency and reliability. Its decentralized digital ledger enables instant access to a product's status or authenticity, creating a global value chain for goods.
International Trade: The adoption of smart contracts simplifies documentation such as licenses and certificates, reducing costs and third-party reliance. This improvement in speed and accuracy has greatly benefited the conduct of international trade.
Decentralized Finance and Banking: Decentralized Finance (DeFi) utilizes secure digital wallets and smart contracts to manage funds, bypassing traditional bank fees. This innovative application of blockchain technology could very well shape the future of finance.
**Cryptocurrencies and Online Payment Systems: **Blockchain technology underpins both cryptocurrencies and blockchain-based payment systems, storing transactional data in decentralized, peer-to-peer networks. This eliminates the need for centralized authorities like banks, reducing transaction costs and enhancing security.
Enterprise Adoption: As a major trend in 2023, more enterprises are expected to embrace blockchain technology, drawn to its decentralized nature, improved security, transparency, and protection against cyber-attacks.
Development of Blockchain-Based Applications: The demand for software developers with blockchain expertise is set to soar in 2023, as companies seek to create powerful applications for secure transactions, enhanced Know Your Customer (KYC) features, and more.
But what of the Bitcoin blockchain?
Bitcoin Core (or just "Core") has maintenance and development requirements just like any other software does.
Maintenance work on the Bitcoin blockchain accounts for up to 70% of its software project activities. As the maintenance continues, so does feature development.
Prominent protocol upgrades, such as 2021's Taproot, which enhanced Bitcoin's privacy and scalability are always in development. You can monitor releases made to the Bitcoin Core (currently on version 24) here: and read more about the V24 release in Bitcoin Magazine.
What might happen to BTC's forecasted Price?
Remarkably, Bitcoin remains undervalued despite its many advantages. While it may be true that Bitcoin isn't responsible for the creation of self-driving cars, smartphones, or e-commerce marketplaces like Tesla, Apple, and Amazon, it still holds immense potential as a digital asset. Consider gold, which has long been regarded as the foremost store of value despite not being involved in technological innovation. Trusted for centuries, gold remains the undisputed leader in value preservation. However, gold comes with its share of drawbacks—it's heavy, difficult to transport, and not easily usable for everyday transactions, such as paying for dinner in a restaurant. In contrast, Bitcoin has been dubbed "digital gold" due to its lightweight, portable nature and ease of use in transactions. For instance, one can effortlessly transfer $10 million worth of Bitcoin from the United States to Australia within minutes. This highlights the untapped potential of Bitcoin as an undervalued asset in the digital age.
Bitcoin's revolutionary impact on the finance ecosystem has yet to be fully realized. Despite experiencing scandals, missteps, and price volatility, including a 75% drop from its all-time high in November 2021 to around $17,200 by November 2022, investors and enthusiasts remain optimistic about its future. The coming decade could be crucial for Bitcoin and the broader cryptocurrency landscape.
Although Satoshi Nakamoto's original vision for Bitcoin as a decentralized alternative to fiat currencies has been somewhat compromised, the cryptocurrency market has grown to be worth approximately $853 billion as of December 2022. With nearly 22,000 cryptocurrencies in existence and blockchain technology gaining widespread recognition, institutional investors are increasingly drawn to crypto-assets. El Salvador even made Bitcoin legal tender in June 2021, a first for any nation.
Over a decade since its inception, Bitcoin's revolutionary impact on the finance ecosystem has yet to be fully realized. Despite experiencing scandals, missteps, and price volatility, including a 75% drop from its all-time high in November 2021 to around $17,200 by November 2022, investors and enthusiasts remain optimistic about its future. The coming decade could be crucial for Bitcoin and the broader cryptocurrency landscape.
Regulation and current BTC Market Value
Although Satoshi Nakamoto's original vision for Bitcoin as a decentralized alternative to fiat currencies has been somewhat compromised, the cryptocurrency market has grown to be worth approximately $537.88B as of March 2023. That is a larger market cap than Meta, Facebook's holding company. With nearly 22,000 cryptocurrencies in existence and blockchain technology gaining widespread recognition, institutional investors are increasingly drawn to crypto-assets. El Salvador even made Bitcoin legal tender in June 2021, a first for any nation.
The next decade is poised to play a significant role in Bitcoin's evolution. As it stands, cryptocurrencies are caught between being a store of value and a medium for daily transactions. To achieve widespread adoption, Bitcoin must overcome issues related to scaling and security. Technologies like the Lightning Network and hard forks such as Bitcoin Cash and Bitcoin Gold aim to address these challenges, increasing transaction capacity and speed.
As the Bitcoin ecosystem continues to develop, it is expected that the regulatory environment will adapt accordingly. Comparing Bitcoin to Ford's Model T, Ripple's CTO David Schwartz predicts the next decade will see an "explosion of low-cost, high-speed payments" transforming value exchange in a manner similar to how the internet revolutionized information exchange. Despite the price volatility experienced in 2021 and 2022, major banks and institutions like Goldman Sachs, BNY Mellon, PayPal, and Tesla all hold large volumes of Bitcoin, driving mainstream press attention towards the cryptocurrency.
However, obstacles related to custody, security, and capital efficiency still pose challenges for digital assets. As Bitcoin approaches the brink of mainstream acceptance, its future remains uncertain, and the next decade will be pivotal in determining its ultimate role within the global financial ecosystem.
How to increase Bitcoin mining profit
Like every miner, we're always focused on efficiency and making the most from our mining profits.
Increasing your mining profit with ASIC mining on the HiveON network can be achieved by following these steps:
Choose the right ASIC model: Consider its hashrate and power consumption and decide which coin you plan to mine in advance. You can calculate the mining profitability of a particular model on the WhatToMine website by entering the cost of your electricity.
Opt for custom firmware: Custom firmware like Hiveon ASIC can improve factory hashrate by up to 30% and power consumption levels, increase performance, and reduce electricity consumption. This allows you to earn more while spending less. Hiveon ASIC firmware also offers protection against viruses and free access to the Hiveon OS.
Join a reliable pool: Mining on a pool provides more consistent earnings than solo mining. When choosing a pool, consider its pay-out model, fees, minimum payout, server locations, and difficulty. Hiveon has no fees and covers transaction fees, with a PPS+ payout model that guarantees stable income.
Monitor the condition of your ASIC miners: Track temperature, keep your devices clean from dust, and ensure heat dissipation. Using features like Hiveon's temperature watchdog and autofan can help maintain a safe temperature for your devices, prolonging their lifespan.
Additionally, Hiveon ASIC firmware can increase the hashrate and prolong the lifespan of your miners by reducing temperature fluctuations, automatically optimizing power consumption and temperature, setting up critical temperature thresholds or desired fan speeds, and preheating chips at launch. Consider using immersion cooling to further reduce temperature fluctuations and keep ASIC miners cool.
FAQ:
How much will Bitcoin be worth in the future?
It’s difficult to predict given the market's extreme volatility, especially at the moment. However, the trend is very clear – institutions are taking BTC seriously and BTC provides a hedge against inflation. With every halving, the cost to mint a Bitcoin increases, meaning miners can’t sell below a certain BTC price. These factors indicate the possibility of long-term value growth. Please note the disclaimer – this is an opinion and not advice. Always do your own research or consult a financial planner.
I want to mine Bitcoin – how do I get started?
If you’re a GPU miner, it’s not possible to provide a hashrate that would deliver a profitable outcome. You could mine on our ETC or RVN pool and then exchange your currency for BTC. If you’re considering acquiring an ASIC, take a look at our performance table below.
