Since the critical acclaim of Bitcoin and digital currencies in 2017, there has been a lot of talk about its future. Bitcoin was the first digital currency to attract mainstream attention, and after that, 2018 was less than glamorous, with the price plummeting.
Are cryptocurrencies a thing of the past already, or a Hard Trend of the future?
A Bitcoin Overview
Cryptocurrency uses peer-to-peer technology, similar to the file-sharing technology of the early 2000s. Bitcoin was the first cryptocurrency, it being virtual and decentralized. This means no one is in charge of it and it isn’t backed by the government. Bitcoin’s value is protected only by a distributed network that maintains its ledgers and protects its transactions by means of cryptography.
The concept behind Bitcoin first emerged in 2009 by an anonymous programmer (or programmers) using the pseudonym Satoshi Nakamoto. A single Bitcoin is today valued at $8,204, while the market cap is now at $145.66 billion.
Every Bitcoin is connected to an address and every Bitcoin is sent or received by a digital wallet attached to the address. Names aren’t associated with the transactions, creating a system that is wholly transparent while remaining functionally anonymous.
Bitcoin: A Soft Trend?
What exactly can you do with Bitcoins? It’s digital currency, so saving or spending them seems to be the immediate answer. However, in order to spend them, individuals and, more importantly, businesses must accept your Bitcoins. While a growing number of businesses accept Bitcoin, such as Overstock.com, most popular merchants and service providers including Amazon do not.
A Hard Trend is a trend that will happen and is based on measurable, tangible, and fully predictable facts, events, or objects. They are future facts that cannot be changed.
A Soft Trend is a trend that might happen and is based on an assumption that looks valid in the present, and it may be likely to happen, but it is not a future fact. Soft Trends can be changed.