Technology behind the Bitcoin. Blockchain technology has been hailed as revolutionary and can dramatically lower cost, increase speed, and present transparency of all transactions. Take, for instance, a typical stock purchase or bank wire transaction. The transaction can be executed in minutes but the settlement — the ownership transfer of the stock or funds — takes a few business days. This is because the parties have no access to each other ledgers and therefore can not automatically verify that the assets are in fact owned and can be transferred.
Key factor is how limited Bitcoin’s supply really is. When the market realizes that Bitcoin’s available supply is even less than the mined coins in circulation and that it will never get to the total supply that can be mined, scarcity will drive the price much higher. As of early 2018, this infographic byillustrates the breakdown of the current Bitcoin supply and the article is a good read featuring a new study of lost Bitcoin’s .
While we believe this study sheds the light on how scarce Bitcoin’s supply could become, there is no way to confirm that some of these coins are lost forever and will never be back into circulation. Therefore, this factor will play a positive role for the longer term.
Bitcoin’s lightening network, although advancing, is still in Beta. More and more nodes are running Bitcoin’s lightening network to make Bitcoin transactions faster and the fees significantly lower. Once all the technical challenges settled and the network fully functional, Bitcoin price will significantly benefit as Bitcoin’s intrinsic value will increase.
Bitcoin Price Could Reach 50,000 USD in 2019 Based on the Price Chart
Bitcoin price has the potential to reach 50,000 USD in 2019 But for that to happen from a price perspective, we need to see the following:
- Bitcoin price has to Cross Above 8500 USD and quickly
- Bitcoin should remain above the 5000 to 5500 USD support. If that support fails, it might cause a significant damage to Bitcoin’s price performance and the sector in general.
As shown by the chart below, it is not uncommon for BTCUSD to cross below the accelerated trend line and make a sideways movement before returning in the ascending channel. Note that the chart below is a log chart, these charts are great for cryptocurrencies in general because their moves are fast and the prices are volatile so a log chart is the best to appreciate the movement and tune off volatility and noise.
On the other hand, blockchain transactions reside on a public ledger and are not controlled by a central authority. Decentralizing control removes the need for intermediaries and middle-men. As a result, these transactions can be executed and settled between both parties in minutes with verification that is transparent, public, and validated by the network itself. Whether an emergency or just a normal transaction, this is particularly advantageous where the transfer and reciept of funds are required immediately.
Bitcoin and blockchain are often referred to interchangeably, they are not the same. Blockchain is Bitcoin’s underlying technology and is built upon a version of a blockchain. Blockchain technology gained popularity due to its role as the underlying technology in Bitcoin. Many people fail to distinguish the difference between Bitcoin and blockchain.
So, the primary reason of invest in bitcoin is technology. The rise of cryptocurrencies is often compared with the rise of the internet of the early 90s. It is expected that digital assets like Bitcoin will change the way we make everyday payments.