Being in the modern era and cherishing the gifts of technology is something that all modern people crave. We are leading in a world where everything is going digital, and this particular digitalization process makes our life easy.
We do not know how but innovation and technology is our diplomatic friend, which we would like to be with. There are several issues that technology brings us, but apart from that, it has given so many aspects to trust and depend on.
One of the major gifts of technology is Blockchain. Blockchain is a decentralized process that enhances our capability in finance and transaction processes in a digital way. Cryptocurrency is the invention of Blockchain, which is ruling the world now.
Cryptocurrency is loved by so many people because it has the ability to help us with anonymous and quick, and secure transactions. If you are not into Crypto, you are not in the current trends. Well, it has been estimated that Crypto will be more exciting and more volatile in a decade.
Cryptocurrency has lost almost £ 1.32 trillion of market value in recent years, and the collapse of stablecoin indicates the volatile sense of Cryptocurrency. However, Bitcoin has been the most recognizable Cryptocurrency for over a decade, and its decentralized process is expanding the market of digital finance.
So if you want to explore the world of trading with Bitcoin, you can simply do that from BitAlpha AI.
Will Bitcoin Lead The Market In The Future?
Well, Twitter CEO Jack Dorsey predicted that Bitcoin would be the single digital currency in the next ten years.
Let’s examine if this statement is going to be true or not!
Understand The Circumstance
There are two things that we can consider about Bitcoin in order to understand its circumstances.
- Bitcoin derives network effects.
- It depends on highly innovative modern technology.
Well, we cannot neglect the fact that Bitcoin is built with such an innovative technology that has no exception. The governments are also trying to leverage Blockchain technology, and that is a good sign for its future.
Eddie Hughes, the Housing Minister of the United Kingdom, took a detailed survey and reported that they could save up to £8 billion per year with the usage of Blockchain technology. This is a huge statement, and the proof of it has also been articulated to process its benefits.
On the other hand, networking is the only thing that social media and digital marketing are concerned about. Without networking, there will be no one to give value to any concept.
Think about Facebook! If they had only one user, would they get any value?
But if they have 100 users, they will get some value and trust. This is the process for all social media platforms to get assigned a significant value with network effects.
Now think of Bitcoin!
Many people are using Bitcoin, and that is why it has enormous value in the market.
Stock Market Bubble
Since the financial crisis, people have started to invest in the stock market. Despite the volatility, people are able to get enough profit out of the stock market. There might be two reasons behind this-
- Near zero interest rates
- Quantitative easing
Well, quantitative easing has played a crucial role in propping up the global market share. This has been possible through the artificial inflation of the share buybacks by the companies that had borrowed money for free.
On the other hand, the ETF is the basket of large banks and commercials. If the consumers feel positive about the economy, they will tend to invest or buy assets, and that will create a bubble in the market.
The fun fact is that market tops before the financial crisis of 2008 are quite similar to the 2018 market rise. That was not a positive sign, and no one knew when the market was going to crash.
Rising Consumer Debts
The rising consumer debt has been a big issue in recent years. People are trying to get out of this situation, and thus they are finding an escape route, or we can call it a short route, and that’s Bitcoin. Besides, the national debts are also there due to the inflation rate after the pandemic.
Overall we can count three reasons behind the adoption of Bitcoin, and people think this is the only solution to those problems.
- National debts
- Consumer debts
- Stock market bubble
To Conclude
The above-mentioned reasons are enough for people to trust Bitcoin and its new technology. We all know that Bitcoin is very volatile, but that is not enough reason for people to leave Bitcoin.
Why!
This is because Bitcoin has quite efficient abilities to provide profit to its users not just financially but with technological aspects as well. So, we can say that Bitcoin will still be in the market and maybe more significantly rule the market as the governments are trying to leverage the system.
