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The Upcoming Developments That You Need To Know About Bitcoin

Whats-Next-For-Bitcoin The Upcoming Developments That You Need To Know About Bitcoin

"Change Is The Only Constant". This line perhaps captures the best essence of survival. If one needs to survive in the competition, it needs to change. In terms of technology, the change is often referred to as 'Development'. Bitcoin is no exception. Despite being the world's number one cryptocurrency in terms of price, volume and market capitalization, Bitcoin is still looking out for more opportunities to change – to develop. It is because of these developments that it has been able to retain the trust of the traders which can be reflected in its ranks for all metrics.

Source - Pixabay

But what is the future of Bitcoin? No one can predict that if you are looking out for a specific number. However, when it comes to the predictability of Bitcoin, there are a number of ways to asses the direction if not the magnitude. To asses the direction, we are now taking a shot at the future project developments of Bitcoin in terms of technology implemented, government regulations, corporate money investments and of course, chart prediction which has firmly stood the test of time again and again.


Schnorr Signatures

One of the biggest problems that the Bitcoin today is facing is the issue of "scalability". The current Bitcoin blockchain network runs on ECDSA (Elliptic Curve Digital Signature Algorithm) which is a part of the Bitcoin cryptography technology. The job of ECDSA is to authorize transactions by simply signing it with a signature using a private key. 

However, if a user has a multi-signature wallet that needs 2 or more than 2 signatures to authorize the transaction, ECDSA is not the best option available as it is not the most efficient algorithm around to perform this task.

Source - Pixabay

Schnorr Signatures was developed on the mathematical work of Claus Schnorr. It offers the Bitcoin Blockchain to allow multiple signatures as a single one, thus eradicating the need to sign multiple times for authorizing any transaction. Schnorr Schnorr Signatures are backward compatible with ECDSA. Hence, any change in the Bitcoin Blockchain Network can happen with a soft fork, avoiding a Bitcoin Hash War scenario. As it will be just one single Schnorr Signature that will authorize the whole transaction, the size of its blockchain will also go down and hence, the issue of scalability will be solved. In short, Bitcoin transaction will be much faster. Isn't that good?


Marketing Of Facebook's Libra

Yes, I know we are supposed to talk about Bitcoin and not Libra. But LIBRA is the next step for the growth of Bitcoin. Wonder how? Read Further. 

LIBRA is a cryptocurrency that will be launched by Facebook as a means of sending money to its user. One might wonder how can LIBRA be a development in the future timeline of Bitcoin. The answer lies in the fact that LIBRA is powered by Facebook which has one of the biggest user-bases on this planet i.e. 2.2 Billion.

Source - Pixabay

There is no doubt that Bitcoin is popular. But is it popular enough as Facebook? With Facebook's heavy advertising budget for LIBRA cryptocurrency, people will start considering cryptocurrency as a means of sending money using blockchain technology. This will make people start searching for the term 'blockchain' and of course, 'Bitcoin' to learn more about the opportunities. The acceptance of cryptocurrency in the minds of masses will be done by Facebook's ambitious LIBRA project. However, I believe, the fruits of Facebook's effort of mass adoption of cryptocurrency amongst people as a cheap mode of payment will be eaten up by Bitcoin's 11 years of legacy and its authenticity.


Bitcoin Futures By Bakkt

Gone are the days when Bitcoin was supposed to be just a mere digital asset regulated by no one. However, as the Bitcoin got more popular, it grabbed the attention of many authorities and finally earned itself a position in the derivative markets, i.e. Bitcoin Futures. On 16th August 2019, Bakkt, a young subsidiary of ICE (Intercontinental Exchange) announced that it is all cleared to launch Bitcoin Futures in the late September 2019. The company said that it has acquired a New York state trust charter through NYDFS (New York State Department of Financial Services) which clears its way to offer Bitcoin Futures. 

Source - Pixabay

According to the Bank of International Settlements (BIS), the size of the derivatives market was expected to be $542.4 Trillion at the end of June 2017. Whereas the current size of the whole cryptocurrency market is just $300 Billion as the Bitcoin market cap leads with $184 Billion. Now, that's a big difference in term of inflow of money invested in the derivative vs cryptocurrency/bitcoin market. Hence, when Bakkt launches Bitcoin Futures in the derivative market, the influx of money in Bitcoin is expected to be gigantic, making Bitcoin, a popular choice amongst the traders.

This prediction can be proven right by looking at the numbers released by Blockforce and Bloomberg. According to them, there has been a steep increase of 165% month-over-month in the open interest in CME and CBOE futures contracts between April and May.


Bitcoin 2020 Halving

There is saying which goes by, 'We Can Predict The Future From The Past'. The future price prediction of Bitcoin can also be done using its past history. The analysis was performed by a man named Osato Avan Nomayo from Bitcoinist. The bitcoin halving takes place after every 210,000 blocks which roughly take 4 years. There have been only 2 Bitcoin halving in the past. Once in the year 2012 and 2016. Now, here is a Bitcoin price history since 2011. Can you observe something?

Source - Coinmarketcap Website Screenshot

Yes, the pattern. Right after the year 2012 when the Bitcoin halved, it was the year 2013 when the prices of Bitcoin spiked later settling down. Again, it was the year 2016 when the halving took place and it was the year 2018 when Bitcoin touched to $19,856 later settling down, again. The next Bitcoin halving is about to take place in the year 2020 and hence, if we go by the trend, a major spike in the Bitcoin prices is expected to happen in the year 2021-2022 right after the halving.

So, here were some of the latest developments that are going to happen in the near future. There are plenty more but that's a story for some another day, another time. Hope you liked this article and if you have your own thoughts regarding any new developments, please share that in the comment section below. 

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