If there was a Pandora’s Box of predictions, this would truly be it. The future may bring better fortunes for one over the other. That said the incredible task of making projections can only be possible by looking at their track record. Additionally the ways they can be incorporated into institutions like banks can be a strong boost.
What is the possibility of Bitcoin becoming the established worldwide digital currency; in a manner rivalling regular cash? How will the blockchain impact regular commerce and transactions? These are just a few of the questions we are trying to answer.
The Future On Blockchain
The blockchain is a truly amazing technology. One thing we can be sure of is that even in a doomsday scenario where all of cryptocurrency crashes, this technology will endure. The distributed ledger functionality is versatile and will definitely be adopted widely.
For the private sector in particular, the blockchain will be used to execute pretty much all contracts. The immutable, transparent and efficient nature of the technology makes this possible. Michael Douglass an crypto expert is quoted as follows:
‘’…I do not think that Fannie and Freddie will be using blockchain for mortgages because I think they're going to lag the rest of the market. But, I'm betting that, throughout the private sector, blockchain will be used for contracts, and maybe even some non-agency conforming loans might be using blockchain for validation.’’
A lot of people don’t distinguish Blockchain from Bitcoin. This understanding is crucial. This fact means that blockchain is independent of the valuation issues regarding cryptocurrencies. It leads to the inevitable conclusion that it has almost absolute certainty to become relevant into the distant future. Nonetheless the enduring of digital coins would be great too for Blockchain.
Additionally, there are other sectors other than banking that Blockchain can make forays. Healthcare and insurance are just two examples of these. Therefore, the blockchain will be pretty big. My prediction is that most sectors that need transparent and efficient record keeping will be using blockchain in the future.
The Future For Bitcoin
With regard to Bitcoin and cryptocurrencies, things are a little murkier. The adoption of coins may be impressive on paper. However, in the grand scheme all of them combined have not made even the slightest dent into the dominance of cash.
The production of the assets is too resource intensive and slow. These complexities in volume and availability will really come to the fore. Matt Frankel who is also an analyst gave a great illustration;
‘’ I don't think we're going to be regularly paying the pizza delivery guy with Bitcoin. Now, I do believe that new cryptocurrencies will emerge and may, in fact — and probably will — better solve the speed and cost difficulties that would plague today's cryptos at scale. But, I do not believe that any of our current — you might think of them as first or second-generation — cryptos will be in widespread, common use across society.’’
This is not to mean that Bitcoin and cryptocurrency will not grow; far from it. Instead, it is a fact that Bitcoin is no threat to the currency system as we know it. The promise may lie in newer, scalable coins. Nonetheless, the jury is very much out on the industry as a whole.The use of Bitcoin has to be transcendent and shed the tag of an extremely volatile speculative item.
There is no way of getting to be absolutely certain. Regardless, I’m fairly confident that Bitcoin will never reach the point of global adoption in large scale.