From that moment on, a bitcoin trades at about $ 1996, but no one expects that number to last much longer. Either the price drops to around $ 1,900 when it encounters resistance and bounces back from its previous strong point, or the inevitable happens in the next few hours – BTC breaks the $ 2,000 threshold and doubles its value in 2017.
For the majority of the bitcoin community, the move up will be a symbolic great victory, which is clear evidence that many large entities today see the BTC as a legitimate alternative to traditional currencies. This shift has already taken place in Japan, but it has taken place in a very subtle way. He arrived without big headlines about drastic legislative changes or anything like that, and simply took a huge cash flow into the cryptocurrency.
Much of this money came from larger financial and business enterprises, following in the footsteps of many private billionaires who began to acquire digital currency. In addition to the bitcoin rally, ether experienced a significant increase in its price, along with other altcoin digital currencies.
But much of the focus is on bitcoin as the main competitor to the strongest global digital currency of the next decade. As it passes through point 2k in the near future, what can be expected from the rest of the financial realm, but also from global society as a whole, in response to this performance?
The market cap will increase
Regardless of the price at that time, the market value of total blockchain-based digital currencies will only increase. It has taken a long process for neighboring markets to feel comfortable in this area, slowly but surely investing more and more in BTC and more recently, in the ether as well.
Now with altcoins, zcash, and any other cryptocurrency, the entire market is worth over $ 60 billion, which is an impressive price. A bitcoin exchange rate in excess of $ 2,000 will involve even more money, even if it is unstable.
Of course, this calls many into question what will happen to the same digital currency then. At some point, venture capital bitcoin investments are appearing in the market, and this is also a big shift. While there is no doubt that these will not be commonplace for some time to come, the next period will certainly provide ample space to try out this concept.
The end-user acquisition remains in doubt
Over time, the focus of the blockchain community regularly continues and goes through the phenomena of end-user acquisition in order to use digital currencies. In the initial phase, the most important was the process by which as many ordinary users as possible, whether bitcoin or other blockchains, entered the platform.
Meanwhile, large companies have entered the framework and have recently raised the price of BTC more or less exclusively to its record level where it currently stands. Driven again by this success, many have sought to establish the idea that bitcoin is on the verge of widespread popularity. In other words, it’s just a matter of time (presumably short) until it becomes a household thing.
But many historical factors place this in the “may” category rather than “at any moment”. The problem is that BTC offers a number of benefits that the vast majority of the population simply does not need or appreciate. The parallel to the PayPal scenario is a good weather bell phenomenon, despite being perceived by many (probably mistakenly) as a standard payment option as an indicator of future BTC movement.
The problem is that while PayPal has provided an alternative to the slower and more complicated credit card transaction, bitcoin wallets do not do the same for PayPal. Anonymity and the isolation of the traditional financial sector is not what most ordinary users want in their lives.
With this factor, it would come as no surprise that a decade later the value of the bitcoin market would be much higher than it is today, while its user base remained relatively small (nowhere near PayPal’s operation as a user group).
In the perception of global political leaders, bitcoin is one of the phenomena you simply don’t want in your playing field. It is decentralized, global and not linked to all parts of a standard financial service. At the same time, the paranoid mindset sees it as one that is still controlled by someone, or open to the insertion of this control, which is unrealistic, yet prevalent in the minds of the political elite.
This is why the EU wants to create a law that requires all digital wallets to be linked to their owner or why China is pushing BTC stock exchanges. In the years to come, this will not change for the great nations of the world, and the same mentality will remain more or less in place, even as the legislature catches up with the clear need for recognition of bitcoin.
Despite all the lobbying and PR efforts, there will be no significant change for the bitcoin community in this regard, regardless of success. Bitcoin has no person or persons who could associate a background organization with a political entity. This is something that is a little to be feared about and that the political institution can only understand marginally.
The only major global political organization that seems to be planning a new direction is the United Nations. As recently demonstrated by WFP , this organization strives to use both the blockchain system and current cryptocurrencies around the world.
This is almost certainly the right approach, mainly because it recognizes the realities of the world that will not change overnight. Although governments are more than willing to experiment with blockchains, they are still reluctant to see bitcoin or any other digital currency as a legitimate FinTech venture. There is a very strong feeling that even a stable BTC that will cost over $ 2,000 will not change that mentality any time soon.