Bitcoin is a cryptocurrency which enables the transaction of money without involving the middlemen. It can be used to do various transactions like booking flight tickets, shopping for multiple goods, and purchasing stocks. Numerous people understand Bitcoin as the speculative type of investment to transact online. It is a superior form of currency as it cannot be censored, confiscated, or inflated. However, there are numerous apprehensions in the minds of the people whether Bitcoin will be able to be the king of cryptocurrency even after mass adaptation.
The price of Bitcoin was $3500 during the starting of the year and increased to around $10,000 this summer. It drastically crashed back to $7,000 due to the tension over whether Facebook’s planned cryptocurrency would cause the regulators and central bank to legal action against the cryptocurrency.
Do you think Bitcoin will rule even after the mass adoption?
There's so much debate over this…
Do you think #Bitcoin will be King when mass adoption finally comes?
— Layah Heilpern (@LayahHeilpern) July 10, 2020
In the recent tweet, Layah Heilpern asked, “Will Bitcoin dominate the crypto market even after the mass adoption?” Well, there are many who believe that Bitcoin could hit $100,000 per Bitcoin during the next two years, and it may reach $500,000 per Bitcoin by the year 2030. The possible reasons to believe that Bitcoin would remain the king of cryptocurrency due to its simple network and advanced technical innovations. The lightning network of Bitcoin appears to reduce its popularity in the market. As per BTC forecast, the price of Bitcoin would drastically fall due to external factors like mass adaptation, supply, and demand.
But to counter this, they have developed the second-layer protocol, which offers cheaper and faster payments and retains the level of decentralization in the market. The other cryptocurrency wallets have different augmentation on the top of the wallet to make it more attractive. Whereas, in the real market, people prefer to purchase and hold Bitcoin than any other cryptocurrency because there is a digital store of value. And also, to give tough competition to the other cryptocurrency wallets, Bitcoin appears to enhance the liquid sidechain and marginal improvements and enhanced privacy.
Bitcoin vs. traditional assets: Who will win?
While comparing the value of gold with Bitcoin over an extended period, it has been found that even though Bitcoin’s value will surpass the market cap for gold in the near future. However, gold has always been a superior store of value for different investment portfolios.
Furthermore, the price of Bitcoin is not only volatile but also unpredictable. The price of BTC seems to be altered by numerous real-world cases and scenarios like a mass adaptation. Still, the price of gold is affected by a change in the value of dollars in the international market, and for this reason, the gold prices are not volatile.
When Bitcoin is compared to other assets like stocks and bonds, it has been found that Bitcoin can give a higher return. It can significantly save the tax loss a person would suffer when they invest their money in stocks or bonds. However, the price volatility of Bitcoin makes it less popular when compared to the other assets. Whereas the prices for the stocks and bonds would not fall drastically due to any changes in the market, its prices usually decrease by 0.5–3 %.