So far, the entire year of 2018 has been dominated by the bearish market, and it appears that things will not change in the few short days that are left before we enter 2019. Due to the current situation, many have taken different stances when it comes to the future of crypto, and its leading asset — Bitcoin (BTC) itself. While there are plenty of those who believe that the bear market is just a temporary issue, such as John McAfee, there are also those who claim that cryptocurrencies are spiraling down to their doom. Some are even asking will Bitcoin hit zero in 2019?
The mining dilemma
One of the biggest problems that cryptos are believed to have at this point revolves around the process of mining. As many are already aware of, mining is a process of using expensive computers to solve complex mathematical equations which lead to validating transactions made on top of the blockchain.
By doing this, miners themselves earn a certain amount of the cryptocurrency whose blockchain they service. These come as a type of reward for validating transactions, and that is pretty much what mining really is. The process itself is created in a way that makes it more and more complexed as more coins are put in circulation. While resources necessary for mining — such as computing power and electricity — continue to rise, Bitcoin rewards continue to drop.
This would still be able to work if Bitcoin price continued to increase, which is currently not the case. As a result, numerous miners are opting to leave, and even the entire mining facilities are being shut down. The entire network takes a hit because of this, as transactions will take longer to be validated, which will cause people to eventually stop making them.
Many are asking why did Bitcoin become so big in the first place, considering the fact that the process of running its network is so obviously flawed. One answer provided by analysts is that Bitcoin is the most popular coin simply due to the fact that it was the first crypto to appear. However, while these analysts claim that Bitcoin might eventually fail, it is entirely possible that another cryptocurrency, one with the best available technology, will take its place and lead the crypto space of the future.
This situation can be compared to the one regarding internet search engines. While the entire world has heard of Google, not a lot of people remember the first search engine to ever appear online, called AltaVista.
The Bitcoin network has a number of other issues
While mining is a big part of Bitcoin’s potential downfall, it is certainly not the only problem with this coin. Another big flaw is Bitcoin’s inability to scale. Its network can only process about three or four transactions at once. Ethereum, for example, is significantly better with its 15 TPS, although by today’s standards, this is also nowhere near what the crypto space requires. Visa’s payment network, for example, can work through thousands of transactions per second. And, while there were numerous attempts to make the BTC network artificially more scalable, the results did not achieve much as of yet.
Another big issue includes the lack of anonymity, with BTC being pseudonymous, at best. Because of problems like these, there are currently over 2,000 different crypto projects on the market, attempting to offer better solutions. While none of them threaten Bitcoin’s dominance right now, some are starting to get closer to actually endangering its position.
Still, the situation might not be that bad, as it will likely take years before Bitcoin actually falls if it ever happens at all. Bitcoin is very unlikely to fail as soon as 2019, although there are reasonable concerns regarding its future further down the line. While investors are advised to hope for the best, they should also be prepared for the worst.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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As Bitcoin, and cryptocurrencies in general, continue to advance in the world of modern finances, many are finding new use cases for this form of money. Although cryptocurrencies still have limited use cases, many of them are finding new ways to be useful, which will give them an advantage and secure their long-term survival.
Bitcoin, for example, already has numerous use cases, including purchases of goods and services, crypto trading, loans, savings, and more. Another of its use cases includes individual retirement accounts or IRAs. Simply put, this represents an account that individuals can open at a number of financial institutions, and use it to save money for their retirement.
Many choose to open these accounts due to lower taxes, which allow them to save up more. IRA comes in several types, including traditional IRA, rollover IRA, and Roth IRA. Traditional IRA is as simple as it sounds — users simply open an account and start adding money that they can afford to deduct from their income.
Rollover IRA includes “rolling the money over” from the qualified retirement plan to the IRA, while Roth IRA allows users to deposit after-tax money which can then grow completely tax-free
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E-commerce is one of the fastest growing trends worldwide, and for good reasons.
It’s convenient, secure, and is effective at connecting merchants with interested shoppers from across the world.
For this reason, it’s no surprise that online shipping is expected to overtake brick-and-mortar stores globally by 2021, making it the world’s largest medium for retail. As the industry changes, it’s important for retailers to keep up with the latest technology so they’re able to accommodate more customers at once. This is where BlocPal comes in.
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At the time of writing, Bitcoin price is at $4,048.60, after the coin experienced a 5.53% growth in the last 24 hours. Meanwhile, its market cap sits just above $70.5 billion, while the coin’s daily trading volume is at $5.7 billion.
Bitcoin has had a rough 2018, just like the rest of the crypto market. In fact, the coin is so influential that it usually dictates the market behavior, whether positive or negative. Right now, the rest of the market follows the positive trend, with all of the top 10 cryptocurrencies currently trading in the green, while only a few among the top 100 coins are experiencing minor losses.
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