Slowly but surely, the world’s first and best-known cyber-currency is making its way into the mainstream economy.
Of course, much of the credit for this gradual acceptance goes to the blockchain technology that verifies transfers.
Given that hackers have had their successes black-hatting the banking system, there’s little doubt that blockchain will ultimately evolve into a superior means of secure transfer.
Its technology has already made Bitcoin indistinguishable from other currencies to those whose financial transactions are already digital.
Bitcoin’s main issue, then, remains on the reliability of its value.
Check out Point No 2 in this report:
Halving is Bitcoin’s way of internally adjusting for its supply and demand:
- Every four years, the system’s creator — whoever he is — cuts in half the number of Bitcoins that can be mined.
- Mining involves a series of calculations to discover a specific number, and the first one to do so gets the reward of 25 bitcoins, currently valued at $10,500.
- Miners need banks of high-octane computers to do this, which gulp large amounts of electricity, among other things.
- If the miners can’t generate as many Bitcoins, their profits are slashed.
In theory, this scarcity should cause the price of Bitcoins to rise. However, with other factors in play — such as volatility — what if it doesn’t?
For one, miners could be less inclined to keep going, which could trigger a severe market swing. Rather than raising Bitcoin’s value, such a scarcity could negatively affect stores and services willing to go to the time and effort to accept them.
In either case, the winner will still be the blockchain, which continues to be a true revelation. No matter what happens to Bitcoin, blockchain is the future.