Where Do We Go From Here? What Major Changes Could Mean for the Future of Bitcoin

After 3 years of indecision, Bitcoin’s political hierarchy called off 2MB block marks. Though some core developers are happy with the change, there are quiet a few within the Bitcoin community that don’t agree and will likely fight back by selling their coins; ultimately driving down Bitcoin market value over time.

However, we’ve reached a new time in the history of humanity. As individuals, we are now free to choose to stay with a current system that isn’t working for us; or choose to patronize another.

The End of the New York Agreement

Many expected November 16th, 2017 to be the end for Bitcoin. The majority of miners, (over 80%), supported 2MB blocks. However, hundreds of the largest world Bitcoin companies and exchanges signed an agreement in support of block size increase. Despite the business’ desire to increase block size, Bicoin’s core user and development communities were planning to reject any software change decisions. Most felt it would split the Bitcoin network down the middle, irrevocably tearing the two sides apart.

Any disruptive split would be disastrous for Bitcoin, despite the fact that the market value for has been surging throughout 2017; only recently beginning to drop in November. Inexperienced investors came to believe that the forks would land them free Bitcoin. Though this is what happened with Bitcoin Cash, the chain split that was planned for November 16th would likely yield a different result.

Once the SegWit2x split was fully implemented, the real Bitcoin chain, (as we know it), would no longer exist. Many of the larger companies had planned to step in and fully support both chains. However, the 2MB chain was launching without customer replay protection which could cause fund loss and network-wide confusion.

Bitcoin Cash was the first clean Bitcoin fork. Its primary goal was to be business-friendly. The price of Bitcoin Cash continues to do well and even rose 100% within one 2-week span. Many investors are expecting great dividends.

Bitcoin’s Market Share Could Plunge

Joseph Poon, (working to develop Bitcoin’s Lightning Network), spoke recently about the freedoms that the Blockchain provides users. Though modern changes aren’t sitting right with every user, the Blockchain still gives everyone the freedom to choose another route. He states that sometimes the best and, “cleanest solution,” is, “When a party starts to suck …” to “just get out.”

For those corporations who’ve reached the end of their rope when it comes to acceptable scalability and transaction fees, the best thing is to leave. They will have to liquidate their $7,500 Bitcoins to $6,600 when the time comes to make their supplies appealing to first time buyers.

“There’s no better time to buy a used car!” (or Bitcoin)

We’ve seen it everywhere. People are losing their proverbial “you know what” over Bitcoin’s rising value.

Over the past 2 years, it’s risen to over 7 times its original price. The prices began to dip in November, falling about $1,000.

Real life gatherings surrounding Bitcoin are marked with bright-eyed and bushy-tailed new investors. Bitcoin’s subreddit is growing into a supportive community of people congratulating one another on their first time buys. Many expect annual ROI’s of 10x their original investment.

One of the most attractive lures driving new investors is the news that CME Group has plans to add Bitcoin futures to their portfolio in 2017. This would make Bitcoin available to a new investor pool worth billions of dollars. However, you can’t sell snake oil to Wall Street hedge fund investors.

CME Exchange

Experts feel that even if a hedge fund chooses to buy into Bitcoin, they will try and short it first to drive prices down and scare weak shareholders. They will do this especially if they can cause a few billion dollars in losses, bringing the Bitcoin price down to $3000.

Corporations and Blockchains

Blockchains are a brand new financial entity. Just like corporations were the first entity to have shareholders 400 years ago, Blockchains mark a new era. Corporations can lobby Congress today and they have many of the same rights you and I have. Experts believe that Blockchains will soon exist in much the same manner.

Experts also expect the market value for all crypto currencies to rise to especially high rates in the coming years. However, competition still exists. The mainstream media is starting to pay a little too much attention to Bitcoin; naming it things like, “the new gold.” However, that’s not quite an accurate description. In truth, we now live in a world where people create new metals that have the same essential properties of gold. That’s a much better discovery and a much better world.

Experts feel that it’s ridiculous to expect Bitcoin to maintain the top position in market share value. No one knows exactly who will be on top as time goes on.

The Demand for and Rise of Bitcoin and Crypto-Ruble

Throughout 2014 and 2015, Bitcoin’s prices declined. However, the surges throughout 2016 and 2017 were historic; driven by concerns surrounding Ponzi schemes, ransomware, the need to transfer Bitcoin value into other Blockchain tokens, (ICOs), and Chinese citizens skirting capital controls.

Because of this, Russia has announced that it will release its own Crypto-Ruble. The currency will feature a 13% tax exchanging into and out of their paper fiat, (if the user can’t show documentation of transaction history.)

Experts predict that the Crypto-Ruble might become an attractive option to combat ransomware, Chinese citizens skirting capital controls, (even scarier in a bear market); and hyper-inflation.

There are rumors that the Chinese government shut down their BTCC exchange in October 2017 amidst rumors of plans to release their own Crypto-Yuan as well.

There’s no doubt that whether its business or government entering the playing field, crypto-currency is definitely becoming a big deal in every financial market. However, the biggest players aren’t interested in making more money for Bitcoin. They want to develop their own crypto-currencies.

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About Bart 7 Articles

Administrator at the Province Town coin exchange. Have been trading cryptocurrencies for a number of years. Ex developer and current cryptophile.

4 Comments

  1. Bitcoin has really proven that it is the honey badger of money. Just does not care. Where do you think it will go at the end of the year Bart?

    • Jessie,

      Totally agree. The “honey badger” of money it is. I think it could reach 10k by end of year.

      Lets see…

  2. Hey Bart,

    Do you really think that the Russian government would ever consider a crypto ruble?

    It sounds quite speculative to me to be honse. Perhaps they will do it just to keep a control on the supply?

    • Russia really wants to control everything in their country. They are really scared of any situation in which they have to relinquish control or that empowers the people. This is the reason they are long the crypto ruble.

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