Table of Contents
An introduction
Bitcoin was first introduced to the world back in 2009. Initially, only a handful of people were interested and excited for cryptocurrencies. A majority of these people were either software developers who had been trying to achieve something similar. While others were the people, who were into using the Dark Web for illegal activities.
Not so surprisingly, Bitcoin was only accepted in the Dark Web. Clearly, because of the amount of privacy Bitcoin offered to its users. Moreover, it was decentralized which meant no big bank or government had power over it. The price was controlled by the market forces (that is demand and supply). There was absolutely zero government or any other intervention.
Unlike the traditional fiat currency which is controlled by big banks and government. So, for example, the government can lock the value of their currency. Just like the Saudi Arabian Riyal (SAR) has been locked against the United States Dollar (USD) for a while now. Although there were plenty of factors which attracted investors, the main factor was volatility.
Literally, Bitcoin would be worth $2 one day and $6 the other day. Investors saw an opportunity to gain profits in this gap. And Bitcoin had been doing great last year. However, the value has fallen drastically this year. Where tons of people made money, others almost lost their entire investment. For the past few months, there is a speculation that Bitcoin will be dead soon.
Bitcoin (BTC) Price Today – BTC / USD
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Is Bitcoin going towards dollar zero?
Well, the short answer is no. Although nothing can be assured in the crypto market because it is full of surprises. Realistically speaking, there can be quite a few scenarios for the future of Bitcoin. But the two major scenarios it comes down to is Decentralized or Centralized?
Decentralized
As explained before, decentralized means that no big banks or government will have power over cryptocurrencies. And it will be on public ledgers through blockchain like it is at the moment. This is one of the prime reasons why Bitcoin and other cryptocurrencies got so much of attention and have so many uses.
Centralized
The other scenario is that a majority of countries become successful in regulating cryptocurrency and making it a centralized currency. This means that Bitcoin will probably be fixed at a certain price and will just be a currency which can be used on the internet and doesn’t have a physical version of itself.
Conclusively, the scenario where cryptocurrency will be centralized is less likely to happen. A majority of countries have tried doing that, but not one has succeeded in it yet. It is more likely to stay decentralized. It is important to keep in mind that centralization doesn’t mean making the trade of crypto illegal.
Centralization means that cryptocurrency can be legally used, but it is under the control of a big bank or government. Also, a few countries like China have made the trade of cryptocurrency illegal, where in other countries cryptocurrency is in the grey area. Either way as soon as crypto trading was banned in China Bitcoin’s price dropped significantly.
