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    What's next for bitcoin?

    2021 was an incredibly busy year for bitcoin, but it was also a year in which it cemented its own legacy. It was the year that people started to wake up to what bitcoin actually is and why they should own it. We started the year on a clean slate, reaching a new all-time high. Then soon after, Tesla got in the game and put bitcoin on its balance sheet. That alone would be the biggest news for bitcoin in most years, but this was not a normal year. After this Tesla announcement, bitcoin would raise its price even more, reaching $64,000, another record. But the volatility is not only moving up, but also down. What followed was a bearish summer for many, with the price dropping all the way to $28,000. This move was caused by an unprecedented amount of FUD being thrown at bitcoin. FUD is so strong that in most years it would have meant the end of the bull run and sent us into a deep bear market. Or potentially even worse, threatening the existence of bitcoin itself.  

    Things like China's ban, the large exodus of mining from the same country, and the threat of US regulations. But none of that can hold it back forever. And then El Salvador announced they would make bitcoin their legal tender, probably the most important news since the emergence of bitcoin itself. They would then follow that up by announcing that they would build their own bitcoin city. Though those were probably the biggest stories of the year. There were two things going on behind the scenes; which were potentially the most important. The first was the incredible increase in adoption of Lightning, the layer 2 of bitcoin. I've said in previous articles, but at the beginning of 2021 many people considered Lightning to be an abandoned project that would never reach the potential of its original promise. But now it's being used to upload and power an entire country. Even though El Salvador's population is smaller compared to other countries, I think this is the story of the year. Finally, many people didn't even realize that the bitcoin protocol was upgraded last year, but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. it is used to upload and power an entire country. Even though El Salvador's population is smaller compared to other countries, I think this is the story of the year. Finally, many people didn't even realize that the bitcoin protocol was upgraded last year, but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. it is used to upload and power an entire country. Even though El Salvador's population is smaller compared to other countries, I think this is the story of the year. Finally, many people didn't even realize that the bitcoin protocol was upgraded last year, but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. the population is smaller compared to other countries, that's the story of the year in my opinion. Finally, many people didn't even realize that the bitcoin protocol was upgraded last year, but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. the population is smaller compared to other countries, that's the story of the year in my opinion. Finally, many people didn't even realize that the bitcoin protocol was upgraded last year, but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice, as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. but it was. In fact, Taproot was the biggest update for bitcoin in years. Although there's no change you'll immediately notice, as you can see happen with EIP 1559 for Ethereum. Rather, these upgrades were small things that set the foundation for more in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future. While smart contracts are not currently possible for bitcoin at the same level as other smart contract chains. Taproot is potentially the first step that could make them a reality in the future.

    It is safe to say that a lot happened in 2021, so much so that it was a challenge to keep up with everything. But we are a generation of people who are always thinking about what's next. So what's next for bitcoin? Let's talk about that.

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    A lot of what's happening with the price of bitcoin right now depends largely on what's happening in relation to Covid. This was the shock that cut the price of bitcoin in half in March 2020, but it also finally gave real meaning to bitcoin's purpose. Because of this, bitcoin reached a new all-time high and will rise 3 times from this point. But every time there is a new variant or event of fear time, it also reduces the price of bitcoin. If it's not the virus, there are other side effects, like inflation caused by the whole situation. Again, this finally makes the use case of bitcoin legitimate in the minds of the mainstream. If this inflationary situation continues to drag on, which I believe it will, then bitcoin only has to do one thing. Survive. With every block that is mined, bitcoin gets stronger and stronger. Every day you wake up and bitcoin still exists is a bullish thing. The world of fiat finance is rapidly crumbling while bitcoin is running steady. If this situation continues, corporations will turn to bitcoin. Governments will too. Regular people will be the last to realize it and get into bitcoin too, but by then the price will have exploded. Keep a very close eye on what is happening in the financial markets. A lot of people will be caught by surprise, unprepared and this will cause panic. Bitcoin is the financial life raft that can offer relief. corporations will flock to bitcoin. Governments will too. Regular people will be the last to realize and will also get into bitcoin, but by then the price will have already exploded. Keep a very close eye on what is happening in the financial markets. A lot of people will be caught by surprise, unprepared and this will cause panic. Bitcoin is the financial life raft that can offer relief. corporations will flock to bitcoin. Governments will too. Regular people will be the last to realize and will also get into bitcoin, but by then the price will have already exploded. Keep a very close eye on what is happening in the financial markets. A lot of people will be caught by surprise, unprepared and this will cause panic. Bitcoin is the financial life raft that can offer relief.

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    The next thing that will happen is Grayscale's BTC Trust will be approved by the SEC and converted into a Spot Bitcoin ETF. Although it appears that the current application has been rejected, Grayscale has taken a completely different approach than most companies. They fired back at the SEC, opening the dialogue to the public. It's a risky move, but one that will pay off in a big way. The U.S. government has recently begun to understand how many people are involved with bitcoin and cryptocurrency. So much so that it froze and stopped the infrastructure bill over the summer. Something that shocked many. The key point is this. Crypto is rising fast and that means a lot of the countries richest people will be heavily into crypto. These are the people who have the power in the country. Now, why does Grayscale's proposal need to be approved and a proposal from another company. Simply put, they control the most bitcoins by far and so it only makes sense that they would be the first to be approved. While the approval of a futures-based ETF drove the bitcoin price to a record high, eventually reaching $69,000. A spot ETF would have a much bigger impact. At the very least we would see the price of bitcoin double in anticipation; reaching $100,000, if not more. This will be an exciting development to watch. A spot ETF would have a much bigger impact. At the very least we would see the price of bitcoin double in anticipation; reaching $100,000, if not more. This will be an exciting development to watch. A spot ETF would have a much bigger impact. At the very least we would see the price of bitcoin double in anticipation; reaching $100,000, if not more. This will be an exciting development to watch.

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    Finally, there will be another country that will accept bitcoin as legal tender. Not every country has the perfect power setup to move as fast as El Salvador. It takes time. Additionally, many countries wanted to use a wait-and-see approach. Let El Salvador be the first domino to fall. Let them experience all the mistakes, difficulties and learn from them. And have learned a lot. As I said before, the key takeaway here is that there were no major hiccups or mistakes in the system there. Any day you wake up and bitcoin is still working is a bullish day. There are a lot of rumors about which country will be the next country to adopt. Rumors ranging from Tonga, Panama, Brazil, etc. Just like a game of dominoes. Once one domino falls, the others will fall even faster. We will get to that point soon.

    One of the key things I'm interested in watching next year is the extended length of this bull run. We've reached a point where this market cycle is unlike any other before. Will the cycles be extended, but still reflect previous bull and bear cycles? Or maybe the whole bull and bear cycle theory is an idea we'll have to forget about. Treating the market in a similar way to how we treat the stock market. One thing is certain. I continue to be extremely bullish on bitcoin and what will happen in the future. If in doubt, scale down. Besides, bitcoin's next halving isn't that far away anymore. Time passes quickly and it will come faster than you think. We are living in bullish times.

    What about you? What do you think will happen next year with bitcoin?

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    SourceJohnWege

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