The Future For Bitcoin
The Future For Bitcoin
What was once a worthless coin became a two pizza 10,000 BTC token, raised to all time highs of $70,000 and now sits at roughly $27,000 per bitcoin. All of that in the matter of just 14 years. Since then it’s also sparked all new innovation of blockchain that now is a part of many things outside of the financial sector and countless alt coins that still use the primary idea of what bitcoin is and how it was built.
But what’s the future of bitcoin?
Will it hit $100,000+ and become one of the largest world assets ever? I mean Gold itself only sits at 12.88 trillion dollars and the entire crypto space hit nearly 3 trillion during the last bull run. That’s a rather sizable chunk and crushes silver's value.
Nearly half of all that gold and silver is locked in Jewelry. You would think a vast portion of it would be within banks and private investments but those combined don’t even match jewelry.
The united states also came off the gold standard in 1971 which begs the question if gold really is as valuable as it once was or has value shifted to something else?
For the most part all systems like gold, silver and other precious metals, fiat and the stock market are rather rigged anymore and the only one that kind of is fair game is crypto. So could we see crypto become a massive boom or a massive bust from the recent crackdowns?
The AI Revolution
Bitcoin has for the most part been rather stable in its value over the last few months. The volatility is far down but other assets are staking to take off. This is why I rather group everything into crypto instead of just Bitcoin however for the sake of this article Bitcoin will be a focal point we will continue to touch back on.
AI tokens however seem to be holding their own and graining some traction. While some felt the AI craze was over once chat GPT was release and the initial hype died off what they didn’t realize is all the alternatives it just sparked. Development takes time and these new AI’s are only just starting to come online and advance. It most likely will be a trend that continues on for a long while now and that laws will be slow to react to. While they are all busy complaining about cryptocurrency right now AI is blowing up in their face and could make trading on markets nearly pointless as an AI system would be able to collect data and really just manipulate the hell out of everything into it’s advantage. An AI vs AI trading system of while I’m not sure anyone really wins in that one beside the companies controlling the AIs.
What’s Really Holding Bitcoin Back
From $70,000 to currently levels I think it should come into question what’s really holding Bitcoin back from becoming the all mighty? Is it constant regulatory pressure, is it wealth tied up into too few hands or is it something else?
One of the biggest hold backs I think as of the last few years now is the mix of traditional finances into bitcoin. Sure it allows for higher amounts of investments from larger holders but it also brings forward the ugly that holds stocks and other system by the neck. The biggest is options and the expiry of options events.
Many places will make a big deal about these option expiries but to be honest a 3.5 billion option expiry like we are having right now in the Bitcoin would is a drop in the bucket against a massive 518 billion market cap.
In many cases these things are already factored in way ahead of time before they happen. For example the next bitcoin halving that is going to take place will take bitcoin from a 6.25 BTC per block reward down to a 3.125 BTC block reward a rather drastic reduction yet again.
Bitcoin does roughly 144 blocks per day at 3.125 reduction rate you’re only looking at 450 new bitcoin hitting the open world if those miners sell. At current prices this is only 12.15 million dollars worth which might cause a huge liquidity crisis for bitcoin.
This halving is expected to happen on April 27th of 2024 so just shy of a year away. If history repeats itself this halving price should be kicking in soon if it’s not already which is way many expect a bull run this year and not next.
A Shift Away From USD
Another major factor we are seeing right now is the introduction of more global currencies. Where only everything around the world was traded in USD the first competition was BTC the second is BRICs and the third might be AI and something we don’t even know about as information is power and AI has the ability to drastically increase that knowledge.
This shift away from the USD including the major debt ceiling crisis is becoming due. It’s always a constant battle and something the USA struggles with. Even coming close to the deadline would have MASSIVE repercussions to the confidence in the USD while an all out default would be devastating for everyone. Maybe this time around it will happen? I mean there are some seriously dumb, bull headed people trying to run this country lately. For some reason saying to reduce spending when you have massive debt is looked down upon for some odd reason.
Either way, passing it or not passing it will in fact have negative effects on the USD. It’s not until the debt starts to subside that we are going to see any real positive action happen here.
This once again paints a positive picture towards BTC and for the most of crypto as there's a set in code issue of the token in particular bitcoin. Simple scarcity and knowing the emissions is a great way to understanding how it works and what to expect and we have all of that information in public while something like the FIAT system continues to just blast us with shock after shock.
So the question still remains what does the future of bitcoin look like?
In my own opinion I think Bitcoin will only become stronger and more sought after as governments keep battling it out and people continue to lose more and more confidence in their governments and leaders. I can’t remember the last time the government did something for the people instead of for the party and that’s sadly what the United states government has become.
