One of the mental challenges that you might put yourself through that is difficult to imagine is that of being a crypto enthusiast. The extreme highs and lows of emotion that you will experience are powerful enough to make you feel like you are the king of the universe in one moment, and then like you are worthless in the next instant due to the rapid shift in how you will feel about yourself in the next minute. There are instances when just a few hours separate the two states of mind. Bitcoin users, on the other hand, are designed differently. Although we experience the same level of stress as every one of you, the primary distinction is…
While the majority of those who are invested in cryptocurrencies harbor the expectation that their financial situations would improve over the subsequent bull run. The maximalist who supports Bitcoin does so for a variety of reasons. They will argue that Bitcoin operates in a manner that is distinct from the rest of the cryptocurrency market. And I would say that, for the most part, I agree with what was just said. The majority of alternative cryptocurrencies are created with the intention of making money, while Bitcoin is challenging governments.
In light of the fact that 2022 is drawing to a close and 2023 is about to begin, I have been producing a number of pieces that examine the previous year and provide forecasts for the next year. It is so easy to get preoccupied with the here and now, dwelling on events from the previous year or anticipating those from the year to come. However, Bitcoin is a bet for the long run. Even if we go forward just 5 years, that’s still a very small amount of time when compared to how long Bitcoin will be around. Keeping this in mind, I embarked on a mental exercise to imagine what Bitcoin would be like in another five years. This brings us to the year 2028. [Note: Where exactly would it fit in the grand scheme of things? What exactly is the most common misconception that it is attempting to dispel? And how much would it cost to buy that? There is little doubt that things will seem quite different in the future.
Every year since Bitcoin first gained widespread attention, the issue of which cryptocurrency will unseat Bitcoin as the most valuable in terms of market value has been a topic of discussion. Ethereum is the cryptocurrency that has been selected most recently as having the highest possibility of really becoming a reality. A great number of authorities have said that the occurrence of this event is an absolute given.
Despite this, Bitcoin will continue to dominate the market in 2028. The more time you spend participating in the cryptocurrency market, the more you will start to comprehend how the market really operates. The most touted initiatives in the market during the previous cycle were alternate Layer 1s. Many hedge funds predicted that Luna, Solana, Avalanche, Near, and Fantom will be the next big thing in the financial industry. On the other hand, the organizations were just trying to fill their own pockets.
Alternate cryptocurrencies were created with the intention of making money, but Bitcoin was developed with the goal of altering the way the world works. The value of each of these alternate Layer 1s has decreased by more than 90 percent, and it is possible that it may never recover. Aptos and Sui mark the beginning of the next generation of new Layer 1s, which have already started to materialize. It is a process that never comes to a conclusion. Bitcoin will remain in the top spot in 2028, while Ethereum will remain in the second spot.
During the last cycle, one of the primary arguments that were used to spread false information about Bitcoin was that mining took a significant amount of energy. Everyone falls prey to the present climate and the things that are fashionable to criticize at the time. And although the use of energy in mining is one of those concerns right now, that won’t always be the case. When Bitcoin’s adoption rates are even higher than they are now, the cryptocurrency’s energy consumption will be seen as “clean and a strength.”
The answer lies in monetary concerns.
Money is the driving force behind everything in the world, and if it keeps growing at its current rate, Bitcoin will become one of the best methods to create money. Those who mine will be motivated to seek out the most cost-effective renewable energy source available. Those who are already throwing away energy will be encouraged to start mining Bitcoin as a method to put that energy to productive use. At oil mining operations such as Shell, this process has already started to get underway. As the cost increases, the level of incentive will rise to an even greater degree.
Mining capabilities will be built into anything that consumes a substantial amount of energy, so plan accordingly. Various goods, including but not limited to space heaters, automobiles, refrigerators, air conditioners, and the list goes on. having the ability to generate some money off of use cases that already need a lot of energy.
Adoption on a Global Scale
Even the most upbeat supporters of Bitcoin were taken aback when El Salvador made the announcement that the country will recognize bitcoin as legal cash in 2021. Although it was something that we all foresaw coming later down the road, it was something that was always considered to be in Bitcoin’s future. A little over half a year later, the Central African Republic became the second nation in the world to recognize bitcoin as an acceptable form of currency. They are not the final ones by any means. The chain reaction of dominoes has already started.
In the course of the next five years, I anticipate that anywhere from five to ten more nations will recognize bitcoin as a valid form of currency. The vast majority of them will be less developed nations in terms of GDP, comparable to El Salvador. There is a good chance that they will be found in Africa and Central America. On the other hand, near the conclusion of this five-period block, there will be a significant revelation. A more significant corporation will at long last declare that bitcoin is an acceptable form of payment. Countries like Brazil, Argentina, Mexico, or Turkey, amongst many others, are all possibilities in this regard. When this takes place, we will finally have reached the point when the floodgates have been opened fully.
Many people believe that the widespread adoption of Lightning as a payment method is the factor that will either propel Bitcoin forward or set it back on its path to becoming the global reserve currency. A mere two years ago, the Layer 2 Lightning implementation for Bitcoin was very nearly written off as a failure. Development had been sluggish, and adoption had been much slower. There was next to no news of its acceptance, and as a result, the project was regarded as a ghost project. But since then, every single thing has been different. It is making it possible for people in El Salvador to use Bitcoin as legal cash, and many people also use it for their day-to-day business transactions. Instantaneous and almost cost-free transactions are available.
While it’s true that there have been some growing pains, it’s important to remember that this is perfectly natural. The reality is that as time goes on and more people start using it, more bitcoin will be added to the network, and as more nodes are operated, it will become more secure and have greater potential. In the not-too-distant future, Lightning will have the capacity to process more than 25 million transactions per second. There is not a single another blockchain that even comes close to those statistics. It would be more than sufficient for the world to use Lightning for transactional purposes on a daily basis, and this will happen.
In the future, individuals will utilize Lightning in a manner that is analogous to the way that people use bank accounts and debit cards in the present day. Bitcoin of Layer 1 will be used to store the savings.
The work is going to keep moving forward, and Taro is going to be integrated. This will make it possible for stablecoins to be run on Lightning as well as make it possible to create tokens. In the long run, this will give Bitcoin its very own native smart contracts, as well as Defi. As soon as this happens, there will be no reason to use about 95% of other cryptocurrencies.
This will be the primary concentration point for many individuals. By the year 2028, we will have finished the subsequent bull and bear cycle. Not only will we reach the next Bitcoin halving, but we will also soon be getting close to the one that comes after that. During this time period, the price will have fluctuated quite a little, both higher and lower. After all that happened with FTX, a lot of people have been having second thoughts about the future of crypto. The reality is that not only will Bitcoin continue to exist, but its value will skyrocket to levels that have never been seen before.
When we think back on the year 2028, the price of Bitcoin will have reached $16,500, and we will be filled with intense regret that we did not purchase more. We did not put in all the effort that was humanly feasible to increase our wealth. If only we had put more of our savings into investment opportunities. If only we had sold some of the unneeded items lying around the house, started a side business on the internet, or even gotten part-time work, we could have raised additional money to put toward our investments.
Those that gambled their whole bankroll will be hailed as geniuses by their fellow players. They will have produced earnings that can completely change their lives. However, since the price of bitcoin will have increased by such a large margin, we will no longer have to convert our bitcoin holdings into fiat currency in order to make use of it. Bitcoin transactions will be accepted at the vast majority of establishments. There are a lot of individuals who would choose to be paid in bitcoin.
In the year 2028, the cost of one bitcoin will reach $500,000, which, when compared to the probable price increases in the future, will seem to be a bargain. In another 5 years, we’ll be discussing the next halving as well as the future of the bull market and how it will look. The price forecasts that we see then are going to be just mind-boggling.
Combating the Effects of FUD
As usual, not everything will go according to plan for Bitcoin, and the cryptocurrency will continue to have its critics. While today, the primary source of fear, uncertainty, and doubt (FUD) around Bitcoin is its energy consumption or even the possibility that governments may prohibit it. In the year 2028, these problems will no longer be a concern. On the other hand, there will emerge a completely new source of contention.
In the event that Bitcoin’s price reaches $500,000 with the potential to go much higher from there. There will be suffering as a result of the transition from a society based on fiat currencies to one that uses bitcoin. In our world, there are only two types of people: those who have Bitcoin and those who do not. There will be arguments that Bitcoin has led to significant increases in inequality around the globe. That only those with substantial wealth own big quantities of it. That will become accurate when this process of change takes place.
The value of fiat currencies will continue to plummet at an absurdly rapid rate, and the only people who will remain undamaged are those who have Bitcoin. After this change takes place, it will eventually be beneficial for everyone since they will be rewarded for storing their money in Bitcoin. This will be the case because it will be positive for everyone involved. On the other hand, there will be suffering in the near term.
The following are some of my forecasts about what the cryptocurrency Bitcoin will be like in five years. They might be correct to a greater degree than many people are willing to accept, or they could be wholly inaccurate. In the realm of cryptocurrencies, five years may seem like an eon. This much is clear. Just consider how much the world has evolved in the three years since the outbreak of the COVID disease. If the number of people using Bitcoin and other cryptocurrencies continues to rise, the world will seem quite different from how it does right now.