By Contributing Author
Cryptocurrency is known for its volatility, but when Bitcoin, the most valuable and widely used cryptocurrency, reached below $20,000 in Q3 of 2022, it left many wondering if the entire market would crash and if Bitcoin could survive. Despite suffering from scaling issues, including high transaction fees and slow networks, Bitcoin was born from Blockchain and codebase and is undoubtedly the most popular cryptocurrency for everyday transactions.
What Has Caused The Instability of Bitcoin’s Value?
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According to experts at the Bitcode Method Official, this is due to the general global climate. It is just in the cryptocurrency sector where things appear to be on the downturn.
Living expenses are hiking, interest rates are rising, a recession is approaching, and inflation is skyrocketing. The US S&P 500 is currently in a bear market (down 20% from its most recent peak), and stock markets are also unstable.
Because of this, even large investors have less discretion over their funds. Additionally, many regular investors — not wealthy hedge fund managers or large organisations, but ordinary individuals — have less money to put into any kind of investment.
These days, many people feel that the risk of investing in something as erratic and unpredictable as cryptocurrencies is just too significant.
Since Bitcoin is not regulated or safeguarded by the most prevalent financial authorities, your money is lost if you use funds to invest in it, losing value, or you can no longer access your crypto wallet.
Unlike other more conventional assets, Bitcoin lacks an intrinsic worth that supports it. There are no physical assets, revenue streams, or underlying business structures.
Will Bitcoin Survive Despite Its Plummet?
In many nations worldwide, the rise of Bitcoin has been characterized as monumental. Transactions in many areas of human activity are now driven by Bitcoin. The daily transactions demonstrate how cryptocurrencies’ sphere of influence is expanding.
Since 2009, when Bitcoin was the only cryptocurrency, more than 1,500 tokens and coins have been created. While a sizable portion of altcoins is ERC-20 tokens created on the Ethereum network, some, like Bitcoin Cash, are forks of the original Bitcoin network.
Here are five reasons why Bitcoin will indeed survive the cryptocurrency crash:
The Community Base
This year’s price volatility of Bitcoin warrants attention in this regard. In a way, the performance of Bitcoin has a significant impact on all other cryptocurrencies. Members of the Bitcoin community are renowned for combating misinformation and misleading claims.
On Github, where contributions are compiled, you can review the technological advancements made to the Bitcoin network. Block creators, coin enthusiasts, reviewers, developers, and users make up the community. Although the Bitcoin community cannot influence its market price, it does help debunk myths that cause many investors to leave the market.
Bitcoin is Largely Transparent
Blockchain’s transparency is a proponent of its adoption in many organizational and economic sectors. Any technology is sure to be sustainable once made available and suited for use in several facets of daily life.
The Blockchain has been deemed suitable for databases, the healthcare sphere, educational frontiers, and elections. Blockchain is appealing for adoption globally due to its practical utility.
The development of more recent apps shows that there are innovations that can coexist with the Blockchain’s openness. Integrity can be guaranteed even though it becomes evident that the procedures used to process transactions on the Blockchain are not secretive.
Assurance of a system functioning as described is vital in many human endeavors. Efficiency can be assessed after a system walk-through to verify the process result. This region supports the utility of the Blockchain.
Its Real-World Uses
For other blockchains to follow, the Bitcoin Blockchain served as a model. Many of the current generation’s emerging blockchains are an enhancement to the Bitcoin Blockchain’s original concept. The Blockchain is suitable for process verification due to its transparency.
Manufacturing operations are now using the Blockchain to ensure standard compliance. Others have mentioned utilizing it to identify counterfeit medicines and create decentralized groups, among other things.
The use of Bitcoin in the actual world is thriving. It is among the most significant cryptocurrency exchanges recognized by businesses worldwide. Numerous wallets exist for storing Bitcoin, and an Ethereum wallet is a secure place to save several ERC-20 compatible tokens.
Increasing Merchant Acceptance
Every day, more and more people around the world are accepting Bitcoin as a payment method. Numerous brick-and-mortar stores accept Bitcoin payments, as well as online merchants. There will be a large market for accepting Bitcoin if there are ways to exchange it for fiat money and other cryptocurrencies.
The Use of Supporting Technologies
The Blockchain has undergone improvements like the Lightning Network to speed up the Bitcoin network. To address the apparent flaws of the Bitcoin Blockchain, other integrations are being looked into. The network has real potential despite its inefficient areas.
An integration that quickens the rate of transactions on the Bitcoin network is already available on the Bitcoin Cash platform. Newer technology is developing as time passes to make Bitcoin more secure, scalable, and effective. Bitcoin is following the path of internet development, assisting it in reaching growth on the Blockchain.
Current protocols that are being tested also point toward an upgrade to the Blockchain. Patches are periodically introduced to the network to close any security gaps. The Bitcoin Blockchain could use some enhancement because it is a dynamic system.
What Is Needed To Stabilise Bitcoin?
Those who still own Bitcoin would need to hang onto it, and others would need to start purchasing it once more to stabilize it. This has previously occurred.