The holiday season is marked by retrospectives from the past year and perspectives on the coming year. Let’s focus on the future for a few moments.
Bitcoin continues its journey of maturity and expansion in spite of falling prices in the last 12 months, but some challenges still impose on the market the need to respond to very important issues in the future.
1. Improved usability
In the future, using Bitcoin will need to be easier and simpler in terms of the actual “handling” of the asset through people’s cell phones and computers. Eliminating complexities without giving up security and decentralization is the ultimate goal in the direction of this future.
2. A new money better than the old money
Today, Bitcoin needs to be “sold” to people as new money, even though it is currently worse than the old money. I explain. The ecosystem is still being born and there is much difficulty in using Bitcoin in practice and there is still difficulty in buying/selling things in general with Bitcoin (one of the most fundamental characteristics of money).
In addition, Bitcoin requires changing habits when it comes to creating, handling and spending money and this is not always welcome among people. In such a situation, it only adheres to Bitcoin who discovered some way to benefit from it at present or who really believes that this technology will develop a lot in the future and wants to participate from the beginning despite the current difficulties.
In any case, in the future Bitcoin will have to be much better than the current money in order for mass adoption to come, and then we will see the full potential of this technology in action. Of course, technological issues will need to mature in terms of scalability and their inherent requirements.
3. Regulation initially confused / contradictory
Although many adherents of Bitcoin hope that the asset will break all barriers regardless of the “permission” of centralized entities and we will move in the direction of a decentralized economy, the fact is that we will see the space being regulated.
There is a controversy in the community about whether we should reject all attempts at regulation following our anarchist and anti-system spirit or whether we should engage early with regulators to help government understand the technology and its implications for regulations that end up being more beneficial to the ecosystem than harmful.
Governments around the world are more likely to regulate activities around digital currencies in a confusing and contradictory way, which will cause many companies in the area to migrate to the more technology-friendly areas (as is already the case today on a smaller scale).
In the medium to long term, the tendency is for the laws around the crypto-currencies to be “global” and even fulfill a role of forcing the discussion of a global government on the world in monetary terms, which nevertheless carry potentially ironic and complex implications for the future in the light of the early goals of the adepts of this technology.
4. The turning point
Bitcoin will probably see in the future a turning point that will be decisive for its failure or success. A war, a global financial crisis, or events surrounding technological development and maturity may contribute to decentralized digital currency as a mere dream devastated by reality or as a viable financial system for overcoming the current model in a beneficial sense .
What will actually occur and how, at each step along the way, remains a mystery. But the answers will come to the extent that what is now the future becomes present and, lastly, past.