make Bitcoin what it is today as ultimately, they have the best interest at
hart for cryptocurrency.
stakeholders in Bitcoin, as without miners who write the history of Bitcoin there
would be little availability of bitcoins, miners earn a transaction fee for
processing transactions. In the early days of Bitcoin, miners were mainly
hobbyists using personal computers to solve relatively simple cryptographic
problems. Now, miners are raising investor dollars to construct server farms
optimised for bitcoin mining, the electricity use of Bitcoins are very high and
so this is not sustainable. The future of Bitcoin might be faced with a
challenge of mining Bitcoins in a more environmentally friendly way.
developers are voluntarily maintaining the Bitcoin protocol and keeping it bug
free, ultimately righting the rule book. In the future with high number of use
and transaction, core developers might find it a challenge to keep Bitcoin bug
worried about cryptocurrencies disturbing the industry.
With fiat currencies being in a position to be manipulated by Central
governments. In order for Bitcoin to be adopted by
the mainstream, it might have to have a turnaround strategy in order to keep
stakeholders interested (figure 3.0).
have the biggest stake in Bitcoin as without them there would not be such a
high demand for Bitcoins, users are able to push the price up or down and so
determining whether Bitcoin has any value or not.
In the future, the Stakeholders of Bitcoin might change
rapidly. If government was to regulate transactions then Bitcoin would lose its
core values of being decentralised and ultimately its users, resulting in losing
its value and the price dropping (figure 3.1). However, it could also result
and encourage in more investors to use and trade Bitcoins as the government
body is thought to be safer. Governments
can regulate the price of assets, such as fiat currencies, through buying and
selling actions in international markets. Secondly, they can tamp down
excessive enthusiasm for an asset class by saddling it with regulations that
increase the cost of doing business. Governments can also make the asset scarce
by imposing controls on it. An example of this is the case of gold, which has
import restrictions in several countries. All three types of actions have the potential
to fail in the case of Bitcoin and cryptocurrencies. This is because
cryptocurrencies are extra-national and have decentralised ledgers that are
spread across multiple countries. Their regulation will require a
well-coordinated effort across several economies. This might be a difficult
task, given varying levels of interest in cryptocurrencies and their impact on
national economies in different places.
services are also stakeholders as they are the ones that really handle the
transactions. So, they drive the primary demand. And merchants, customers and
investors will just follow them.
and unless buyers keep asking Merchant to accept Bitcoins, merchants will be
oblivious to the demand. If big merchants started taking Bitcoins then possibly
other merchants would follow, rising the demand of Bitcoins and possibly
putting fiat currencies under pressure.
foundation provides Bitcoin with power. The purpose for this foundation is to
pay the core developers, allowing them
to work full time to develop the software. It also has connections with US
government, if a problem occurs the foundation is the only entity to be
acknowledged by the government. There are many members of the community
who thinks that Bitcoin doesn’t need any authority that speaks with
governments. This is because they think that Bitcoin should operate outside and
apart from traditional national governments and would be going against its core
competencies of being unregulated. Without a stable value Bitcoin cannot truly
be a currency. Rather it is a commodity asset that one trades, like gold or
silver, in hopes that its value will rise and yield a trading profit. There is
nothing wrong with speculation; the actions of speculators help to add market
liquidity and to determine the market value of assets.
the current stakeholders and the future stakeholders, it is very hard to
predict where Bitcoin might be in the future, because it is all about adaptation
and what stakeholders want in the market and what they deem to be
valuable. Bitcoin will not necessarily
disappear and Bitcoin cash will not eventually take over, however more
innovation could result in Bitcoin dying, and being replaced with new and
improved cryptocurrency. Bitcoin is simply a 21st century
version of gold, only without the storage issues. Some believe it is just a
short-lived popular fad that may soon evolve into something quite different. I
believe only time will tell the future of Bitcoin, as the only certainty is the