What do you say???? Bitcoin Technology by 2030?
18-year-olds should save Bitcoin now so they can be set in 2030. Ethereum a security? Adam in Vegas!
According to research released in late 2015 and 2016, U.K.-based Magister Advisors, a financial institution which focuses on facilitating mergers and acquisitions in the technology sector, explained that bitcoin could become the sixth largest reserve currency by 2030.
https://steemit.com/blocktrades/@alfa-good/witness-the-witnesses-this-will-be-our-test-run-for-the-blocktrades-on-bitcoin-and-clarification
Bitcoin has become too successful for its own good and the 1MB block size limit has caused transaction fees to skyrocket over the past few months. Many believe a solution is desperately needed in order for Bitcoin to continue to grow as a payments system rather than just a store of value.
But the cryptocurrency isn’t anywhere close to its potential, according to Jeremy Liew, the first investor in Snapchat, and Blockchain CEO and cofounder Peter Smith. In a presentation sent to Business Insider, the duo laid out their case for why it’s reasonable for bitcoin to explode to $500,000 by 2030.
Bitcoin has experienced exponential growth since 2009 based on many indicators including user base, trading volume, price, market cap and global adoption. In the last year, some of the largest financial and technology conglomerates including JPMorgan, Goldman Sachs and Fidelity Investments have grown increasingly optimistic towards bitcoin.
Currently, the network can only support up to seven on-blockchain transactions per second (three in practice) although many more transactions happen off chain. In comparison, PayPal processes about 100 transactions per second, and Visa, about 4,000 per second.
Traditional market operators such as the Chicago Board Options Exchange (CBOE), the largest options exchange in the US, are in the process of integrating bitcoin to enhance liquidity for large-scale institutional and retail investors. Earlier this month, Ed Tilly, CBOE Holdings Chairman and CEO, stated:
As the network reaches its capacity limits, a large chunk of the ecosystem agrees that one of the many proposed solutions needs to be implemented out of fear that other payment systems which have addressed scaling issues will soon be more attrac.
increasing number of investors and companies have adopted bitcoin as a digital currency and as a safe haven asset, rather than as a speculative investment and active user bases of platforms such as Coinbase and Blockchain have drastically increased.
The Bitcoin community has been divided for over the past couple of years on how Bitcoin should be upgraded in order for the network to scale. Over the past year, Bitcoin Core’s Segregated Witness (SegWit) and Bitcoin Unlimited were seen as the main contenders for an end to this stalemate.
For Bitcoin to surpass the market cap and consumer base of reserve currencies, it would need to evolve and ultimately solve its scaling issues. Currently, many holders are considering bitcoin as a long-term investment, rather than as a currency. To compete with reserve currencies, global mainstream adoption of bitcoin must increase at a rapid rate to the point that bitcoin is used more as a digital currency, rather than as a speculative investment tool.
A bitcoin price of $1,000 in 2017.That network users will grow 61x from now until 2030. “Put another way, we need a population of bitcoin users around a quarter of the Chinese population (or 5% of the global population) in 2030 to see bitcoin at $500k,” Liew and Smith told Business Insider. Bitcoin’s user network grew from 120,000 users in 2013 to 6.5 million users in 2017, or about 54x, and this could be just the beginning. Growth of that magnitude would produce 400 million users in 2030. The average value of bitcoin held per user hits $25,000. “As institutional investor cash in Bitcoin, sophisticated investors trading Bitcoin, and Bitcoin-based ETFs proliferate, we think the average Bitcoin value held will increase to around $25k per Bitcoin holder,” Liew and Smith said. Currently, with a market cap of $16.4 billion, and 6.5 million user count, the average user holds $2,515 worth of bitcoin. Bitcoin’s 2030 market cap is decided by number of bitcoin holders multiplied by average bitcoin value held. Bitcoin’s 2030 supply will be about 20 million.Bitcoin’s 2030 price and user count total $500,000 and 400 million, respectively. The price is found by taking the $10 trillion market cap and dividing it by the fixed supply of 20 million bitcoin.
have now reached a fork in the road with bitcoin and blockchain. Bitcoin has proven itself as an established currency. Blockchain, more fundamentally, will become the default global standard distributed ledger for financial transactions,”
Bitcoin Unlimited takes a whole different approach to the block size issue. Rather than having a hard coded limit to the network, Bitcoin Unlimited advocates complete freedom and flexibility, and allows miners and users to come to consensus on a block size limit on the fly. Concretely, this means that miners and users can signal which block size limit they prefer and decide to converge at an agreed upon number.
Miners’ control over the block size in this system is not unbounded, as users can also decide to reject a block size increase; however, the default settings in Bitcoin Unlimited effectively give miners control over the limit because a majority of the network hashrate will override the user’s preference after four blocks.
However, opponents argue that such flexibility can result in miners opting for bigger and bigger blocks, making it harder for miners with limited resources to mine, and thus, concentrating the mining power in the hands of a few miners.
Furthermore, Emergent Consensus, which is the aspect of Bitcoin Unlimited that alters the block size limit, is a hard fork of the Bitcoin Core software. A hard fork creates an incompatibility between the new and old protocols, posing the risk of a split in the network where people decide to continue to work on both protocols, thus creating two separate blockchains.
For Bitcoin Unlimited to be successfully implemented, everyone would have to move to the new blockchain and abandon the old one completely. This is an unlikely outcome since Bitcoin has supporters on both sides, Bitcoin Core and Bitcoin Unlimited, who will likely support the protocol they like best.
Bitcoin Unlimited wants to have an approval rate of 75% before implementing the fork. If the quote is met and held for a certain period of time, the hard fork will be implemented — but again, miners cannot force users to follow their lead.
Since Millar and Magister Advisors released their research on bitcoin’s growth and potential to replace reserve currencies, bitcoin has surpassed a market cap of $70 billion and has recently outperformed all asset classes and currencies.
Bitcoin Classic is another proposal that aims to increase the transaction processing capacity of Bitcoin, originally through the increase of the block size limit to 2MB. In November 2016, this changed and the project moved to a solution that moved the limit out of the software rules into the hands of the miners and nodes.
Bitcoin Classic is also an attempt to move the technical governance of the Bitcoin project from the developers of Bitcoin Core to a voting process involving the largest community of miners, businesses, developers and users.
The adoption of bitcoin in Asia, particularly in South Korea, China and Japan is believed to be one of the driving factors in the upward momentum of bitcoin. In Japan for instance, the country’s largest technology conglomerates such as CME Group have already delved into the global bitcoin exchange market with the vision of providing improved and regulated trading platforms for bitcoin users. In the Philippines and South Korea, due to the legalization of bitcoin as a remittance method, a rapidly increasing number of users have started to use it as a means of payment. KakaoTalk, the most widely utilized messaging application in South Korea with over 90 percent market penetration, recently invested in a Philippine bitcoin-based remittance service provider to increase the adoption of bitcoin in both countries.
the Consensus 2017 conference, Bitcoin startups executives and miners held a meeting during which an agreement was signed by over 50 companies including the Digital Currency Group, Bitcoin.com, Blockchain, Coinbase, ShapeShift, as well as major mining players like Bitmain and BitFury. The proposal includes lowering the barrier for the activation of SegWit to 80% of the network’s mining power, technical information on the proposal is still scarce, however, the solution will rely on new software which is currently not developed and may not be compatible with existing software. Despite support from some of the biggest companies, many have criticized the complexity of the solution and believe that it is being used as an attempt to stall a user activated soft
Bitcoin’s biggest hindrance for achieving mainstream adoption is still scalability. Once the Bitcoin Core development team’s scaling and transaction malleability solution Segregated Witness (SegWit) becomes integrated by major wallet platforms and the majority of transactions are facilitated as SegWit-enabled payments, bitcoin block size and transaction fees will likely decrease significantly, making the network more attractive to new users.
CoinJournal conducted a survey asking over 1,100 of our readers* which proposal they preferred. Results show that SegWit is the clear winner with 71% of the respondents selecting this option as their preferred solution. Roughly 18% responded Bitcoin Unlimited, while around 11% said they preferred another solution. Respondents were also given the option to comment with many showing support for a user activated soft fork (UASF).
Wish I could time travel back to 2010 when it was so cheap! I guess if it would reach anywhere above $15000 , still the time has not run out! @alfa-good
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