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    Bitcoin and Blockchain Prospects for 2021

    Published on January 19, 2021

    2020 will forever go down in history as one of the most turbulent and educational years for humanity. The ongoing global pandemic has revealed that people are in dire need of solutions that offer efficiency and transparency to benefit vital sectors like healthcare. In addition to this, the developments that took place last year have had an ambitious and significant effect on the entire financial sector. However, as a result of the global health crisis, governments have opted to print greater volumes of conventional cash which has given Bitcoin a hedge against inflation, effectively increasing the cryptocurrency’s value in the market place. Below are some of the effects of the abovementioned causes and how it will affect crypto this year according to experts. 

    Continued Volatility 

    The Executive Director at Hyperledger, Brian Behlendorf, began his statement by highlighting that there is no way to be sure but he suspects that the continued volatility of cryptocurrencies, such as Bitcoin, will be its defining feature. The use of technology and services such as smart contract tools, blockchain, and distributed ledgers will continue its growth. The continued financial strain that sectors experienced last year has continued into 2021 which means that there is little to no room for proof-of-concept undertakings. However, these conditions are likely to drive large and smaller enterprises towards a greater sense of teamwork as opposed to the zero-sum battles over market share that have been seen in past years. 

    Rapid Adoption 

    The Acting Comptroller of Currency in the US, Brian Brooks, shared insights into the matter as well. According to Brooks, cryptocurrencies, such as Bitcoin, are to the financial and banking sectors what the internet became to libraries. While the internet existed for 10 years before the shift in 1995, its rapid adoption only became possible once it became accessible to the average Joe. Brooks expects to see a similar transition for Bitcoin and cryptocurrencies this year as more people accept digital currencies as a suitable tool for everyone and not just a select few. Developers of crypto and crypt-related services as well as consumers who trade BTC with Bitcoin Champion are looking for their safety concerns to be eradicated so the industry can begin its operation according to scale.

    The Realization of a Common Goal 

    Charles Hoskinson, the Founder and CEO of IOHK, stated that Blockchain is currently at a critical turning point. The industry needs to work together to fulfill the technology’s promises and achieved the widespread adoption of digital currencies. According to Hoskinson, industry leaders need to let go of their winning mindset and recognize that the industry requires a rich ecosystem of trusted partners, who work seamlessly together to create something revolutionary for end-users to achieve its potential. He also believes that this year could bring the adoption of blockchain technology to developing countries, where the pace is often slower due to a lack of foundational infrastructure. However, the maturity of the technology and capabilities has made it possible to scale according to populations which means that developing countries could adopt Bitcoin and other digital currencies much faster.