What can you expect from the near future of Bitcoin or cryptocurrencies at all? We tried to look into the developments going on and predict what it is going to be in the upcoming 3 to 6 months.
As of the first part many people are scared of is this, for many people I asked what Bitcoin was… People: Bitcoin is something we can not touch, just came out of nowhere and I am not aware of what it really is or represents. As you can see that this is the first aspect of the whole change-management syndrome. People get scared of new changes, then they get introduced and see why the system came and why it could replace the monetary system. After that they start to accept its here and giving it a try will be one of the final steps in completely integrating cryptocurrency in the globalization. Therefore it only needs time to develop its way in the general public. What we can expect as first is that key-developers will be researching and also developing features that make managing and controlling your own bitcoin’s or other cryptocurrencies way more user-friendly. Developers and bitcoin experts should introduce bitcoin technology more friendly and dummy-proof to the people that are unaware of it.
If bitcoin has to replace the monetary system either in 2014 (little optimistic there) or in 2015-2025, people need to be prepared. They need to be prepared because euro’s, dollars and all other currencies need to be converted into cryptocurrencies. How are developers going to explain cryptocurrency to people above the age of 60? Still many questions in need to be answered before proceeding to the next level of bitcoin integration.
As of many other people think this is just going to end like the Tulip Mania, they are probably wrong. The Tulip Mania has never been so successful in this short time of period like Bitcoin is or was. While bitcoin is being adopted by companies as we speak, the word of mouth is going to slowly increase towards a higher level. Which is of course nothing else than excellent news. The second thing we can expect is that bitcoin’s value is about to boom to new All-Time-Highs, as many graphic and monochromic trading views proof/predict that it might hit 1250-1500 USD in the end of February 2014 or early March 2014. On top of that, early adopters of Litecoin and or Peercoin (I am not trusted with namecoin and novacoin so far) will get significant profits when bitcoin will increase its own value. We have learned that when the bitcoin boomed to 1200 usd, litecoin followed bitcoins path and went from just 4 dollars to 48 dollars, strange enough it also followed back to where bitcoin is now and thus far the btc/ltc has been holding steadily.
Furthermore we are seeing an increasing growth of investors in the cryptocurrency market, a so-called website GoCoin announced to accept litecoin as payment method in their merchant software. As many people have heard about bitcoin and its power, litecoin also begins to brand itself in the market. More people and communities are getting aware that Bitcoin is certainly not the only one, many other altcoins do exist, which some of them hold funny and trolling names. For example Dogecoin which started by a strange doge (Pronounced Doggy) meme. But Litecoin, which many say that Litecoin is silver compared to the gold of bitcoin. Not only Litecoin has made its way up, but Peercoin, Namecoin and Novacoin are also in the rush of being a serious and futuristic succesful cryptocurrency. As of now there is no list of Litecoin accepting companies available that handle through the services of GoCoin. If you want to read the full story, read it here CoinDesk.
As more and more businesses accept bitcoin, we will not only see an increasing value of the coin but it will also gain trust among the people. When there is enough trust, it will start to slowly replace the current monetary system piece by piece. Next thing we need to find out is what to do with the thus far succesful altcoins. Some of those altcoins have underlying purposes which can be used for specific markets. Gamecoin for example can be used for in-app or in-game transactions. Other altcoins have their own technologies.
There has also been development in mining technologies such as ASIC/FPGA, the computing power gets tweaked continuesly to achieve higher mining results. Popular names are KNC and Butterfly Labs. Graphics show that the difficulty of bitcoin mining steadily increases, but not only bitcoin… Litecoin developers have also started to design ASIC chips for scryptbased cryptocurrency. Soon as they are released, I highly doubt the difficulty will boom to a much higher level. At this point I want to warn all graphic card users that are mining scryptbased cryptocurrency, because ASIC mining systems have significant less wattage needed and the hashing rates are maybe 10 times the value of graphic card setup. As soon as the first ASIC’s for scryptbased cryptocurrency are released the graphic card setup will become worthless. Start considering to sell your graphic cards while you still can, I am sure that when the time is here and the ASIC’s are arrived… All graphic card mining users will dump their cards and make no profit on selling their cards. For comparison, if you have now a quad-gpu setup with 7970 cards you might hit:
- 3 Mhash
- 1.5 kW ($ 0.31 kW/h) ~4000 USD a year
- 2000 USD system
When the mining-systems of Alpha-T will be shipped as described, we are going to see a minimum of:
- 25 Mhash
- 0.6 kW ($ 0.31 kW/h) ~1600 USD a year
- 8900 USD
- Total of 10500 USD a year
Now this might be a unfair comparison, lets adjust the graphic card setup so it can matchup with the hashing speeds of the Alpha-T ASIC scryptminer.
- 25 Mhash
- 12.5 kW ($ 0.31 kWh) ~34000 USD a year
- 8000 USD system
- Total of 42000 USD a year
As you can see that a single person is going to be able to run 100 Mhash on 42000 USD while a graphic card user will pay 42000 USD for 25 Mh. Therefore everyone could simply conclude that the era of graphic card mining will soon be ended. Prepare for ASIC’s that are soon to be delivered, probably Q2/Q3 2014. As of that point the Litecoin difficulty will also drastically increase making it way harder to mine the litecoins.
What we are looking at is that Bitcoin is currently ‘the leader’ of all cryptocurrencies in general, when it increases, 80%+ of all other altcoins also increase in value. Personally, I do not like this. I want the succesfull altcoins such as Litecoin and Peercoin to be fully independable, they should not decrease or increase in value when bitcoin does. I am seeing major developments that Litecoin will be the first secondary independable cryptocurrency next to bitcoin. Litecoin should not be classified as altcoin but as a 2nd primary coin. It will operate at same highs as bitcoin does, we will see exploding growth in btc/ltc exchanges soon, probably in the middle of the upcoming summer.
We are now trying hard to predict the value of bitcoin in near-future. I personally, predict bitcoin’s value at $3500-6000 at Q4 2014. A second prediction is that bitcoin will be $50.000 to $200.000 in year 2020.
Combined analysis written by Floppyh5x