When it comes to Bitcoin, many of us get caught up in the here and now; especially when it comes to price. While I'm right there with most of you, I love the feeling of hype that comes along with the rising price. But this is where too many people get lost in the woods. I think only of the present and do not look into the future. Bitcoin is a long-term game and it's anyone's guess where this orange coin will go in the future and the things it will be able to do. So today, let's look into the future of Bitcoin for possible features and scenarios that may or may not come into play. And how high will its price be.
In recent years, Bitcoin has often been criticized for three things. That transactions are slow, expensive and the protocol is updated at a snail's pace. All these things are intentional. Keeping the block small, which makes transactions slower and more expensive at the same time, helps Bitcoin to be even more decentralized and optimizes security. In short, by keeping the blocks smaller, it reduces the playing field and allows everyone to be able to run their own node; keeping bitcoin decentralized. As the protocol is updated at a slow pace; there is a reason for that. Bitcoin's goal is to become the largest asset store of wealth, potentially becoming the world's reserve asset. Over time, the market capitalization of Bitcoin has increased to a significant level. If he achieves these lofty goals in the future, those numbers will be even higher. Often when implementing new software there can be fatal errors. Taking it slow and testing every possible outcome helps prevent these disaster scenarios. Also, since Bitcoin is a fully decentralized chain, it simply takes longer to reach a consensus agreement on upgrades.
Now that you know the criticisms, you should also know that most of them have already been canceled and most likely won't be criticisms in the future.
Let's first talk about the slow speed of upgrades, perhaps the lack of them and the inability to perform tasks that can be performed in other chains. Step by step over time this will be fixed and it has already started. For example, a few years ago, lightning was made possible by a protocol upgrade to Bitcoin. For the first few years nothing was thought of the Lightning and that it would probably never live up to the expectations placed upon it. Then came 2021 and everything changed. This year, the lightning platform and ecosystem has matured significantly, and so has adoption. It did so well that El Salvador is making Bitcoin legal tender in their country using lightning. Something most of us thought lightning wasn't ready for yet, but it surprised us all. If you are not aware, lightning is a second layer for Bitcoin. Lightning transactions almost instantly and almost free. This already eliminates two of the biggest criticisms against Bitcoin; that it is too slow and expensive. It also allows you to use Bitcoin (Lightning) for your daily purchases. Imagine that layer 1 bitcoin would be like your savings account and layer 2 lightning would be like your checking account or debit card.
Other criticisms were that Bitcoin cannot execute smart contracts. But just as happened with lightning, there is a lot of new development and enthusiasm right now that is aimed at this criticism. While admittedly still far behind the likes of ethereum in this area, it will catch up. Just to name a few of the events happening in this area are Stacks, Soveryn, RSK and more. I have a feeling that development will take the same path as lightning. For a few years it will be very quiet and it will believe that nothing is happening. And then it will be complete, fully matured and will surprise everyone. This is definitely an area to keep an eye on. But please remember this. People and developers follow the money. If Bitcoin reaches these huge price predictions, development will come to Bitcoin. There have also been many developments towards making Bitcoin transactions even more private and, in the future, potentially untraceable. The possible future for Bitcoin and its ecosystem that we are looking at is incredibly bright. It is the most decentralized chain with the highest security. But also lightning transactions will make it extremely cheap and fast. Through the 3rd layer, DeFi will be built on top of it. If all this is achieved; the 90% use case of the coins will be thrown out the window. But also lightning transactions will make it extremely cheap and fast. Through the 3rd layer, DeFi will be built on top of it. If all this is achieved; the 90% use case of the coins will be thrown out the window. But also lightning transactions will make it extremely cheap and fast. Through the 3rd layer, DeFi will be built on top of it. If all this is achieved; the 90% use case of the coins will be thrown out the window.
Now let's talk about Bitcoin's march to possible global reserve currency. In two weeks, El Salvador's bitcoin legal tender law will officially go into effect. I think most people can see how the initial announcement of this event affected the price of BTC. The news sent shock waves not only through the cryptocurrency market, but also through financial markets and world politics. I don't think people realize how important that time is. This is real bitcoin test and also lightning. If bitcoin/lightning is able to handle the extra load and run smoothly, it benefits the citizens of El Salvador and also the economy. Well, if that happens, there's no going back. Other countries will be watching. If all goes well, you'll see other struggling countries join in like falling dominoes. Once the dominoes start falling, then the Bitcoin game theory takes place. Even more countries, investors and corporations will join for fear of missing out. This will lead to hyperbitcoinization.
All year long we have seen bitcoin battle FUD attack after FUD attack. First they ignore you, then they laugh at you, then they fight you, and then you win. We've started the "then they fight you" stage. While most people fear the FUD attacks, but I say, "bring it on." Bitcoin continues to win against these attacks from time to time and most people don't see that this actually makes Bitcoin stronger. These tests are also extremely important. Many of us who have invested heavily in Bitcoin and want to see the price increase as well as adoption. It would be foolish to make Bitcoin a global currency if it has never had any tests against it. Every time a FUD attack or concern is thrown at Bitcoin and it prevails. He becomes stronger and confidence in him grows. Just think of gold. He has great trust in him because he has survived thousands of years and is still trusted. Bitcoin still has some work to do in this area, but I have every confidence that it will.
Now to the point that many care most about the price. While I fully expect Bitcoin to reach over $ 100,000 this year (probably much more), I am even more excited about the future price potential. If everything continues on the same trajectory, Bitcoin will eventually reach a price of over $1 million per coin. After that the price will not stop going up and then the sky is the limit.
Let me ask you this; do you have enough bitcoin? What do you think about the future of Bitcoin?