The value of Bitcoin moved up quite a notch- from 1,000 USD at the start of 2017 to 14,000 USD before the year came to an end. Well, there are only a few who wouldn’t be interested in owning something that turned out to be thirteen fold in a year. Indeed, even the naïve speculators are thinking whether cryptocurrencies are a genuine thing or simply a bubble. The actual revolution isn't the currency, rather it is the framework that backs it.
Commercialization & Digitization of Trust
In the latter half of the 1990s, many of us were pulled into the dotcom frenzy as the cyber revolution brought forth impossible valuations to organizations with an innovative twist. But the organizations themselves were not as important as the platform on which they were all built the web.
Cryptocurrencies such as Bitcoin are like glossy items catching everybody's attention. Yet, the genuine business changer is blockchain, the technology on which they are based. Why? Well, because quite similar to the web which digitized geography, making the world smaller, the blockchain accomplishes something truly significant: the digitization of faith. It makes exchanges reliable and safe. However, there are a few things to consider in the evolving realm of digital ledgers.
Will digital assets set the standards for the future? Cryptocurrencies are the future of economy. In fact, it is the privacy and anonymity of the network which sets it apart. Critics may argue that a few nations have already banned Bitcoin and many others will soon follow suit, yet it still does not justify why Bitcoin might come crashing down. Time and again, it has been clearly stated that Bitcoin is a decentralized system which is not controlled by a central authority (such as the government or the bank). Even if the government bans it, it will still continue to operate. There will come a time when paper currencies will cease to exist and cryptocurrencies like Bitcoin will soon take the place of fiat money like US dollars. A number of merchants have already started to accept Bitcoin in exchange for goods and services. The transactions are speedy and there is no hassle of held payments.
Excessive Mining & Its Effects on the Environment
There was a time when Bitcoin mining could be performed using an ordinary computer CPU. As time passed and more and more miners joined the network, the mining difficulty increased. CPU was followed by GPU, FPCA and finally ASIC miners. This specialized hardware comes at a hefty price and only serves the purpose of cryptocurrency mining. The codes are difficult to crack and the process consumes a huge amount of electricity. This has raised the concern of environmental activists who are worried about the effects of Bitcoin mining on the ecology. This has given rise to a dire need to come up with an alternative for fossil fuels. Many crypto mining organizations have already adopted a green energy framework as part of their infrastructure and the entire set up runs on cheap electricity which is powered by renewable energy resources such as solar power, wind power and the like. Indeed, the journey of Bitcoin has but started and it has a long way to go.