Bitcoin is going to make a new high of $5000 is bitcoin's price will drop under the government pressure. ?
So, lets start from the last year pirce history.
If you haven’t been following the bitcoin story,
its price is up 800% over the past 12 months, and 1,600% in the past 24 months. The current price is $4,810 (10 October), a single unit of the virtual currency is now worth more than three to four times an ounce of gold. Some bitcoin believer see it going far higher (10000$) in the next few years.
What happens from here will depend a lot on how governments of all county react.
Will they tolerate digital payment systems that won't genrate tax revenues? For them
Will all they come togather and raised the issue that the Crypto currencies's payments method are anonymous so, it supports the crime like money laundering?
Now government and top bankers are saying bitcoin is a worlds biggest bubble !
Is it a bubble ?
Or a Great investment opportunity to bet on the cutting edge of new-age financial technology?
My best guess is that in the long run, the technology will thrive, but after few years the price of bitcoin will stop growing at its own maturity level, Because for exmaple- when one single Bitcoin will touch 10000$ then people will think about it. And ask themselves, a question will it be profitable to buy now, will it grow more?
And insted of investing in $10000 in one bitcoin unit or in some part of it. People will go with their 1000$ to buy other crypto currencies who has a same, different and better technology like bitcoin has.
Those "altcoin”(other crypto currencies) are the competitors of bitcoin they can penetrate the crypto currency market by collaborating with governments as many governments are already planning, might be working on their own blockchain technology or digital currency.
In principle, In this techno world it is supremely easy to clone or copy the bitcoin’s technology. What is not so easy is to duplicate bitcoin’s established lead in credibility and the large ecosystem of applications that have built up around it.
The United States is taking steps to follow Japan in regulating financial tech, though the endgame is far from clear. Importantly, bitcoin does not need to win every battle to justify a sky-high price. Japan, the world’s third largest economy, has an extraordinarily high currency-to-income ratio, roughly 20%, so bitcoin’s success there is a major achievement.
In Silicon Valley, the executives and investors both are investing in bitcoin and pouring money into competitors. After bitcoin, the most important is Ethereum. The sweeping, Amazon-like ambition of Ethereum is to allow its users to employ the same general technology to negotiate and write “smart contracts” for just about anything.
(A smart contract is a computer protocol intended to facilitate, verify, or enforce the negotiation or performance of a contract.
A Smart Contract Example- It is the code for a basic smart contract that was written on the Ethereum blockchain. Contracts can be encoded on any blockchain, but Ethereum is mostly used since it gives unlimited processing capability.) 👈[Source www.blockgeeks.com]
As of October, Ethereum’s market capitalisation stood at $28bn, and
$80bn of bitcoin. And recently I see, Banking sector is planning to adopt Ripple, a winning platform for banking sector to lower the transaction costs for interbank and overseas transfers, is at third by marketcap. of $9bn. Behind the top three gainers there are dozens of powerfull bitcoin competitors.
Most experts agree that the technology behind virtual currencies may have broad applications for cybersecurity,
which currently poses one of the biggest challenges to the stability of the global financial system. For many developers, the goal of achieving a cheaper, more secure, corruptless payments mechanism is the bitcoin’s ambition to replace a dollars and other currencies of which transaction and its system are not the transparent.
But it is foolish to think that bitcoin will ever be allowed to replace central-bank-issued money. it is one thing for governments to allow small anonymous transactions with virtual currencies; indeed, this would be desirable. But it is an entirely different matter for governments to allow large-scale anonymous payments system, which would make it extremely difficult to collect taxes or counter criminal activity.
It will be so, interesting to see the Japan goverment are allowing bitcoin but government has indicated that it will force bitcoin exchanges to lookout for criminal activity and to collect information of deposit holders. Still, one can be sure that global tax escape will seek ways to acquire bitcoin anonymously abroad and then all people from other countries launder their money through Japanese accounts. By accpeting virtual currencies, Japan is becoming like a Switzerland'- swiss bank with the secrecy laws for this new technology.
**it would be hard to predict the bitcoin price and the future.🤔
Perhaps bitcoin speculators are betting that there will always be a serves of allowing anonymous bitcoin usage,🕵 or even state, such as North Korea that will exploit it.**
Would the price of bitcoin drop to zero if governments could perfectly observe transactions.
Hell No,👿 not Even though bitcoin transactions require an high amount of electricity, with some improvements like use of solar power for mining, bitcoin might still beat with 2% of fees and has a secure and transperent transaction system than the big banks who charge us every time like on credit and debit cards, Neft, Rtgs, Imps. (Mode of cashless transaction)
Finally, it is hard to see what would stop central banks from creating their own digital currencies and using regulation to make a space for themself in the digital world. The long history of currency tells us that what the private sector innovates, the state eventually regulates and appropriate. I have no idea where bitcoin’s price will go in the next couple of years, but as of now there is no reason to avoid bitcoin or other crypto currencies under the fact that change is everything and technology is the future.
After all "New Technology will beat the old technology." 🤗
