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The prophets of the day of the trial of Bitcoin are there again. This time, they are saying that the first-class cryptocurrency will die at $ 43. In other news, BTC's prices suffered another collapse, falling below $ 6,200.
The three probable paths for Bitcoin
Bloomberg's Noah Smith (11 July 2018) highlighted three main paths that BTC will likely follow in the future. The first scenario is the one in which BTC meets the expectations of Jack Dorsey and Steve Wozniak in becoming the global single currency. BTC replaces Fiat and becomes popular in traditional use for all types of payments: coffee, rent, mortgage, etc.
Smith's second scenario is the one in which Bitcoin becomes gold. Here, BTC does not replace fiat except in failed economies like Venezuela. However, its market capitalization becomes significant, perhaps even in the trillions of dollars in the region. BTC becomes less of a currency and more of a commodity held by people to protect itself from any significant stock market crash.
The third path identified by Smith sees the Bitcoin finally becoming useless as it experiences a catastrophic decline. The cryptocurrency is therefore abandoned because it no longer contains any significant value.
Bitcoin will die at $ 43
According to Joseph Carson, the chief scientist of Thycotic, the third scenario is the most probable result for Bitcoin. Commenting on his position, Carson said:
The most likely scenario is that the bitcoin will die; my current bitcoin rating is around US $ 43 compared to mortgaged and manipulated valuation.
Carson expects a point where the BTC mining will cease to be profitable, thus eliminating the incentive for miners. There is a broad debate about what the actual cost of extracting Bitcoin is, but there is still no consensus on it. Speaking of his prognosis, Carson is also sad:
Unless Bitcoin is able to become more efficient in mining and generally more stable, it is likely to die. These higher extraction costs and the fact that more retailers do not accept bitcoin as payment – since they are not able to convert it because it is too expensive – will mean the end of it.
Relevance of Bitcoin not linked to high level status
In a related development, CEO of LaneAxis, Rick Burnett believes that the role of Bitcoin in the grand scheme of things concerning cryptography has nothing to do with being the most quoted currency. According to Burnett:
I do not know if it will be at the top but it will always be a leader because it is the founder. It's what people identify with.
Despite being continually criticized as a craze, Burnett believes that Bitcoin will continue to remain relevant. The first-class cryptocurrency is currently in the middle of another collapse, losing more than 3% in the last 24 hours.
Which of the three scenarios do you think is most likely for BTC? Will BTC continue to dominate even if it is no longer the high-level crypt in the market? Let us know your thoughts in the comments section below.
Image courtesy of 99 Bitcoin and Coinmarketcap.
