The Current State of Bitcoin
2017 was a great year for the crypto world – especially coins like Bitcoin, Litecoin, Ripple, and many more altcoins.
Actually, it was a good year in terms of price (i.e. investment), but what about functionality? What about living up to its use case. Is Bitcoin peer-to-peer cash or is it a store of value? Supporters seem to change their minds as time goes by.
I can say for now, it is not a currency – not now. Maybe in the far future, and I hope so; however, it will be some time for widespread adoption to take place. In its current state, why would anyone buy anything with Bitcoin? A $20 dinner could end up costing $40 in the not so far off future. Just think about the fellows who spent 10,0000 BTC for a pizza in the early years. The price is simply too volatile at this time.
Transaction speeds and fees are outrageous as well. It could cost $20 to send Bitcoin from one wallet to another – and hours of wait time.
Bitcoin is in desperate need of improvements. Soon. Or currencies like Bitcoin Cash or Dash with bigger block sizes will take over. At this point, it looks like developers are going to be implementing the Lightning Network. This should make things better, but it will not be the panacea. See, the network is clogged up. The Lightning Network will direct the traffic off chain, but to finish the transaction, it will need to go back on chain (back to where the clog is located).
Nonetheless, it is a step in the right direction.
What will this do for price? It’s hard to predict. While some say it will go to $0 and others say it will go to $1,000,000, it is hard to make an accurate assessment. Here is my take. I imagine there will be a lot of volatility in the upcoming months. With the hopes of the Lightning Network being implemented and potential ETFs, the price could surpass the high of $20,000 and beyond. However, without some good news soon, we could be headed for a bear market that will last a long time. Look at the BTC chart from 2014 to 2016. After the price reached $1,000 a coin, it took years before getting back to prior levels. That could happen again. Except now, with all the competition out there, another coin could overtake Bitcoin.
Price Chart
I’m a fan of Bitcoin and cryptocurrencies in general. They give us a system of exchange without the control of government. I do believe they can bring us (as humans from all over the world) to a new stage of liberty. Therefore, it is imperative Bitcoin or another cryptocurrency can become the peer-to-peer cash Satoshi Nakamoto imagined. Ideally, Bitcoin will remain the king and actually become a currency. Then other cryptocurrencies (or crypto assets) can also have their use cases as well.