When bitcoin was introduced, it was anticipated as a revolution in the whole financial ecosystem. However, that revolution has not been achieved till now. It is a matter of fact that the first decade of bitcoin was full of scandals, wild swings in the price and missteps. After getting the high price record of worth 63000 dollars in April 2021, the bitcoin decreased in value to 48000 last year. However, the investors and the enthusiasts of bitcoin have increased their optimism about the future of bitcoin. They think this decade of bitcoin will be comprehensive and fruitful for bitcoin investors at bit-indexai. But there are some predictions about what will happen to the bitcoin in this decade, so lets us know about them.
You might not know, but lawmakers worldwide are figuring out how they establish rules in the bitcoin space to make it safe for investors and a less attractive option for cyber criminals. So you can expect some conversations about the regulation of bitcoin. Us officials are also showing quite an interest in the regulation of bitcoin, especially after the terra luna crash. The price swing and various risks in the bitcoin market are making the government consider regulating the bitcoin currency. After the events in the crypto market in the past weeks, it is clear that some regulations will arrive soon in this crypto world. One more reason for the implementation of controls on the bitcoin can also be for the collapse in the DeFi lenders.
Though, it is very long way to go for bitcoin. This year we can see some progress regarding the regulation of bitcoin and crypto. Joe Biden has signed an executive order which called the government agencies to learn the responsible development of bitcoin and other digital assets. The US treasury department has published its first framework for stemming the president’s order. In this framework, it is mentioned how we can engage with other nations regarding the issues of digital assets. The regulation of bitcoin is quite a hot topic for investors, but many experts say it will bring investors profits and is suitable for this industry also. More regulation in this industry will mean a higher level of stability in the volatile digital currency market. It will also prevent fraudulent activities that are happening in the crypto space.
Wider institutional adoption of bitcoin
You should know that mainstream companies in different industries are interested in bitcoin and blockchain. For example, AMC company announced that they would accept bitcoin payments. In addition, financial payment apps like PayPal and Square allow users to buy bitcoin from their platform. The experts predict that more companies will adopt bitcoin and blockchain technology in the present decade. It can prove to be an advantage for bitcoin investors because right now, it doesn’t make much sense for them to use bitcoin for buying things. But with more retailers starting to accept bitcoin payments, the landscape of bitcoin in future will change. It can also have a significant impact on the price of bitcoin.
Growth in decentralized finance!
The emerging bitcoin developments like decentralized finance and autonomous organizations will become the highest growth areas of the bitcoin in this decade. You might not know, but if you invest in bitcoin, you probably know about the DeFi term. The online world of various financial services is powered by solid bitcoin and blockchain technology. The expedient uses the smart contracts feature to swap old mediators like banks. In simple terms, the businesses we interact with regarding managing our finances will be replaced by software.
However, DeFi is still a young technology, but you can expect exponential growth in this area during this decade. You should know that refinement is the most critical step for DeFi. The next step for this technology is to figure out how they can make excellent code and kick every work in a top-notch way. However, there is also a drawback as fewer regulatory guar dials for keeping your bitcoin safe. It would be best if you thought of DeFi as the wild west of investing and banking in various ways. If you lose your assets to fraudsters, you can’t recuperate them.