The future of bitcoin is in good hands, as the cryptocurrency market cap continues to rise and prices are dropping by approximately 2% per month. As the year comes to a close, we think you will be thrilled with the latest updates about its performance. In this article, we look at what’s up for sale in terms of the future of bitcoin and the reasons why it’s here to stay.
Bitcoin’s Long-term Outlook
We have witnessed crypto prices drop consistently with some losses hitting new lows in early November. We are now seeing some signs that things might just be rebounding on their own volition in addition to other factors. This isn’t something unique among cryptocurrencies, but more so among blockchain projects than most can imagine.
As blockchain technology advances, new solutions like sidechains or non-custodial infrastructures are being used to improve scalability. By integrating these technologies into existing systems, they provide additional security, efficiency, and usability. These capabilities will open doors for developers to build robust applications and decentralized finance (DeFi) products at scale. Additionally, it allows users to invest safely and earn rewards beyond those provided by traditional financial institutions. It is worth noting that since January 2021, retail investors have been able to invest $12 million in DeFi platforms with an average return of around 7.7%. For perspective, that represents almost 5% annual returns from your investment.
It doesn’t help that many leading companies, including Meta, Amazon Web Services, Google, Microsoft, Apple, and Amazon, have recently announced significant investments into distributed computing and blockchain development within their respective ecosystems. Blockchain development teams seem poised to make great strides in solving one key issue with cryptocurrencies namely transaction bottlenecks. Once it has solved all problems in blockchains themselves, there will also be more opportunities for them to play a role in other fields, such as data privacy and smart contracts on Ethereum. While there are not much details shared about specific developments, the biggest news seems to be that Ethereum is using Avalanche DAG technology to power Cosmos 1, which could replace BTC’s proof-of-work consensus protocol.
The Current Cryptocurrency Market Trends And Forecasts
Bitcoin has been steadily declining on a daily basis over the past two years, due primarily to concerns surrounding its utility as a medium of exchange. Currently held as a hedge against inflation, recent events show that public opinion is moving toward greater acceptance of cryptos and even wider adoption of digital assets. Many countries have begun allowing certain types of legal tender to circulate alongside fiat currencies on their national banks and exchanges. Further regulatory support may come later in 2022 (depending on where you live) when Japan plans to introduce legislation that would mandate stablecoins and ICOs have already registered thousands of dollars in funding for various start-ups. However, these developments don’t appear to be enough to keep bitcoin from plunging further as a result of increased skepticism. Since August of 2018, bitcoin’s price has fallen below $20,000 only once. If current trends continue, we might expect some positive developments in 2023 though given how little bitcoin holders currently have, most likely prices remain volatile throughout the rest of the year. This makes sense considering it is hard to predict future movements based on past performance.
Bitcoin is Going Forward! Will Your Assets Be Safe?
If you want crypto investing advice, then you’re in luck because CoinGecko’s industry-leading platform offers expert analysis from our team, including the following pieces of information on top trading themes for today’s markets. Check out a quick summary of each of these subjects below:
Bitcoin Price Prediction 2023 – Why Is Crypto So Important To You?
Crypto Is A Modern Asset Class That Has Potential Beyond Its Traditional Purpose
Crypto Invest Like Stocks Or ETFs—But Riskier
Bitcoin Technical Analysis & Key Indicators – What Investors Should Learn About
Future Prospects for Bitcoin – Predictions To Watch Out For In December 2022
Crypto Has Become More Popular Than Ever Before
Bitcoin Prices Are Dropping All At The Same Time But How Much Do They Still Matter?