Thinking aloud again and could be totally wrong about this – but common sense plus monetary policy history tells us that in order to create and build on something like a currency you need a solid foundation. Bitcoin is here to stay and every day, financial institutions, celebrities, and artists are endorsing it. It also has intrinsic value otherwise companies accepting it as payment for goods and services are either ballsy or just plain stupid!
More and more financial institutions are accepting and legitimizing it and with the news that Polish authorities funded anti-crypto campaigns coming to light, it is evident there is a noticeable fear of its potential to put an end to bank monopolies.
And as much as monetary authorities make it sound like they are out to protect the public’s interests, this is probably unlikely the genuine cause of their concerns.
Ethereum founder, Vitalik Buterin, played the safe card by recently warning that Cryptocurrencies can drop to a zero value and must not be used as an investment vehicle – and rightfully so! Each Crypto has a distinguishing function other than a being a commodity on an exchange.
And though it is too volatile and way too expensive to be used as a global legal tendency it can still be broken down into increments and used to purchase other cryptocurrencies Like Ripple (which is bank-backed and likely to become widely accepted).
In the world of cryptocurrencies, Bitcoin would then be the standard – like gold.
It can, therefore, be considered as the grandfather of cryptos, be seen as the base of all cryptos – rather than one that will be made readily available as standard payment instruments. Its ‘base’ and ‘foundation-like’ presence is felt by the gravitational pull and influence it has on the movements of most other altcoins on the blockchain.
Bitcoin will probably have another rampant rally and then settle eventually at a price just around or under 10K – a price that would make it a standard as all 21 million of it is mined.
This was probably the idea that ‘Satoshi‘ had to create it and own most it – like those that hold gold reserves. the blockchain technology will improve (and is already doing so exponentially) to make Bitcoin even more redundant in its purpose of offering speedy transactions, but it will still remain a tradable commodity – like gold, an old painting or antique.