We as humans are more often caught up in thinking only in the here and now rather than thinking about the full picture and the long term. Why save money today for your future retirement or emergency when you can use that money today to buy the latest gadget you've been wanting. It's a story as old as time, people aren't concerned about the future until these problems hit them instead of the side of the head and become present problems. The same can be said for investing and even cryptocurrency. In cryptocurrency, you will often see people pouring into the hottest coins of the moment without even putting a minute of research into it. Meme coins come to mind, Dogecoin, Shiba Inu, Floki and countless others. Most would agree that the future does not bode well for these investments.
In contrast, these same people, when asked why they don't invest in Bitcoin instead, often respond with one of the following answers. It is too slow and too expensive to transact. It would be too expensive to buy a cup of coffee with it. No smart contracts are possible on it, it's old technology. It's too expensive. Why buy 0.0001 BTC when I can buy 1,000,000 Shiba Inus. Singular bias is a real thing. Mining is destroying the world.
These are all the most common complaints you will see about Bitcoin. But the problem is that most of these people only think about the current problems and not the whole picture. There are three things you should always remember when it comes to Bitcoin. The first is that Bitcoin and the crypto industry as a whole is still incredibly young and much progress will be made. A key thing I often think about is how easy managing wallets and sending transactions has been recently. Nowadays, a person with normal technical skills can manage your own wallet and take custody of your Bitcoin. But in the beginning you had to be much more tech-savvy and if you weren't, there was a real risk of losing your coins. Also, those QR codes that you can now use to quickly and easily send cryptocurrency to wallet addresses weren't a thing in the beginning. The industry is progressing and will continue to do so.
The second key point that you should always remember is that although some things may seem like a problem with Bitcoin now or possibly even yet it is not possible to do with it. Always remember that Bitcoin is software and can be updated. Although updates may come slower than one would like. After all, we have become a civilization addicted to instant gratification. The fact is that Bitcoin is not trying to be the best money today, tomorrow or even next year. He plays the long game and looks hundreds of years into the future.
Finally, the third key point to remember is that development always goes where the money is. Like it or not, Bitcoin is currently the original cryptocurrency and the reason this entire industry exists. It is king. As the market continues to grow and more money pours into the market, if it remains king, much more development will come.
When someone tells you to invest in bitcoin or cryptocurrency, they are most likely telling you that you should just buy it and forget it. Come back in ten years or so. Maintain a long-term approach. In ten years, which coin do you trust more? Bitcoin or Shiba Inu?
As I explained above, yesterday's problems will become non-problems today or in the future. One of the previous problems I mentioned was that using Bitcoin was too slow, expensive, and it wouldn't be viable to buy a cup of coffee with it. Or any regular retail purchase for that matter. Just 2 years ago, Bitcoin's layer 2 network, Lightning, was considered non-existent or a failure. But as I'm sure you already know, that has completely changed in the last year. El Salvador made bitcoin its legal tender and used lightning to do so. If Lightning scales to its maximum capacity, it can reach 25 million transactions per second. Yes, you read that right. More than enough to handle being a global reserve asset, all protected by Bitcoin's layer 1. Although, of course, it's not quite there yet, and there's still a lot of work to do to improve it and make it even easier for ordinary people to use. It cannot be denied that he is on the right track.
Bitcoin smart contracts aren't much of a thing right now. Especially when you compare it to smart contract blockchains like ethereum, Solana, avalanche, luna and the list goes on. It is also much less capable. Recently, there has been work to create workarounds to make Bitcoin smart contracts possible via Stacks, Sovereign, RSK and a few others. But it's less than ideal right now. I believe this will change in the future. It will take one of three possible things for this to happen. The first option is that sidechains trying to bring smart contracts to Bitcoin may have some major breakthroughs or developments that would allow this to happen. The second option is that the Bitcoin protocol itself could be updated to make it more possible. While I'm sure it will be highly debated and controversial. In the past, the protocol has been updated to allow the creation, improvement of Lightning. And also with the recent update of the taproot/schnorr protocol, it introduced a few small changes that are a start to make smart contracts easier, but there is a long way to go. Remember we are only 12 years into Bitcoin's life. All problems should not be solved today or tomorrow, and we should not want that. Bitcoin is too valuable and we have to be extremely careful when trying to update or upgrade it. but there is a long way to go. Remember we are only 12 years into Bitcoin's life. All problems should not be solved today or tomorrow, and we should not want that. Bitcoin is too valuable and we have to be extremely careful when trying to update or upgrade it. but there is a long way to go. Remember we are only 12 years into Bitcoin's life. All problems should not be solved today or tomorrow, and we should not want that. Bitcoin is too valuable and we have to be extremely careful when trying to update or upgrade it.
While I believe there is a good chance that Bitcoin will someday be updated to allow smart contracts, I believe there is an even greater chance that Bitcoin will be a much bigger topic for governments around the world. Last year, El Salvador was the first country to make Bitcoin its legal tender, and while we have yet to see another country join them, things seem to be picking up lately. Even here in the United States, some of the most prominent people in government have come out in support of Bitcoin. Several other countries are rumored to make it legal tender this year. But more interesting is how this will play out in the macro world, allowing the game theory to begin.
Recently, the world has been watching the Russia-Ukraine situation with intense focus. The US has threatened that if Russia invades, that it will impose severe sanctions against Russia. Following this news, Russia has suddenly gone public with its support for Bitcoin and cryptocurrency. There are also rumors that they may price their gas sales in bitcoins instead of dollars in the near future, which would exempt them from US sanctions. Coincidentally, a few days later news broke that the US government had seized BTC in one of the biggest Bitcoin hacks ever. Maybe it was just a coincidence. But with governments I believe this is never the case. Russia and the US are playing chicken, and right now the US wanted to show Russia that if they wanted to go down that road, that the US would be prepared. Who knows how this situation will play out or if it is actually just a coincidence. But one thing is certain and that is that the adoption is not stopping and its activation is accelerating.
Inflation around the world is out of control and the world is finally waking up to it. Especially companies and corporations. As this continues to happen, it will become irresponsible for them not to put some of their balance into Bitcoin. This will continue to happen and once some of the bigger companies do it, everyone will get on board.
There are complaints that Bitcoin mining requires too much energy and pollutes a lot, but I believe this will not be a problem in the coming years. The truth is that Bitcoin miners are some of the most innovative people out there. Miners have actually been incredibly innovative in using renewable energy that is not being used. See how volcanic thermal energy is used in El Salvador. Also, oil companies are starting to use gas flares that would normally just be wasted and instead turn that into energy to mine bitcoins. The fact is that mining bitcoins uses a large percentage of your energy that would normally just go to waste.
What does it all mean? Simply put, the Bitcoin protocol will continue to improve over time, adoption by retail buyers, corporations, hedge funds and countries will continue to grow at a faster rate. The real use case and the freedom it actually provides will become more known by the mainstream, just as it recently happened with the situation in Canada. Finally, Bitcoin will continue to run smoothly. All the while going through a halving of the reward every 4 years. The sky is the limit for its price potential. One thing is for sure, the future of Bitcoin is going to be very exciting to watch.
What about you? What do you think is the future of Bitcoin?