Bitcoin has been rising in recent months as its exchange rate continues to rise dramatically. But what exactly is the future of this crypto currency?
James Altucher, a technology investor, fund manager, and venture capitalist, wrote 10 predictions about this digital currency. According to him, 98% of existing digital currencies fall into the category of fraud, but bitcoin, and a number of other digital currencies, have different cases.
Altucher calls bitcoin and a number of other digital currencies sometime will replace the position of paper money as a medium of exchange. The reason, this currency can fix problems that exist in paper currency, and indeed in history, the same thing always happens in the new currency that replaces the old currency.
For example, gold replaces barter systems as a means of transactions, and paper money replaces gold. Now according to Altucher, bitcoin and a number of other digital currencies will replace the paper money as a means of transaction.
Quoted from CNBC, Monday (4/12/2017), here are 10 predictions of bitcoin from Altucher.
1. At least there will be one country whose currency is dead, possibly Argentina or Venezuela. This will make the bitcoin adopters increase enormously, which will trigger an increase in bitcoin value to over USD 50 thousand when it happens.
2. The mainstream bank will receive bitcoin, and start offering bitcoin storage facilities. They will also create digital currency derivatives.
3. 95% of digital currencies other than bitcoin will disappear, just like when dotcom sites are booming. On the other hand, digital currencies that survive the exchange rate will increase dramatically. This will happen in the next four to six months.
4. The US government will quietly start accumulating one of the small digital currencies to facilitate transactions in gray areas with other countries. This is actually already beginning to happen, but it will only be big in 2018.
5. China will invest heavily in digital currency, though most likely not bitcoin. The Chinese government will want to have a competitive digital currency with bitcoin. Condition of the digital currency should be able to control them.
6. The main problem in digital currency is volatility, and this is predicted to decrease drastically in 2018.
7. More and more companies will pay their freelancers using digital currency, which will trigger tax reforms.
8. The digital currency will change the monopoly of a currency that is by the government of a country, just like the internet that changed the monopoly practice in the phone industry.
9. There will be new government agencies created to analyze digital currency regulation.
10. Thousands of digital currency companies will be created and will go public, but only a few can succeed.
after you read the prediction above, make sure you really see both sides of the crypto currency
fear based on knowledge is only an illusion of the mind