Crypto-currencies have gained within the last year a lot of attention. Mainly due to the strong price increase to all-time high of about 20,000 US$ at the end of December 2017, the pioneer of crypto-currencies, Bitcoin has become the focus of Public. Many people have earned a lot of money trading with crypto-currencies, others have lost. Thus sorrow and joy are also due to the high volatility of the Coins close to each other. What awaits us in the next few years? Not limiting itself to the consideration of the value of development, because the technical development and efficiency is crucial.
Obviously, the money is in the foreground, because the crypto will not have attracted currencies without reason, numerous speculators. In 2017, could look forward to those who had invested early in Bitcoin. Returns of 1000 % and more have made some people rich. With traditional systems, such values are never reached. The wanted, of course, be other.
The massive price slump in the meantime, more than 70 % but has created many losers left behind and increasingly, critics of the Plan. At the latest then all became clear, that it is in crypto-currencies straight to a safe investment. In the crypto-universe, in the scattered reports of price fluctuations of 10 to 20 % in a few days, or even hours, everything is possible.
According to the latest news on crypto-currencies, digital currencies do not have it easy. Currently, the financial heavyweights Warren Buffet and Bill Gates rant against Bitcoin. Such Statements could be for the price decline of recent days is partly responsible. Just as quickly, positive news or developments can ensure a rapid rise. The development of prices depends on a number of factors:
- Of the regulation by governments
- Of a mass adaptation in industry and business
- From the development of the crypto-state currencies
- The supply of, and demand
Price is based on supply and demand
The price of Bitcoin and other crypto-currencies based on supply and demand. Who Cryptocurrencies as a plant looks a possibility and the course development is concentrated, must be considered in the first place, the ratio of supply and demand. The supply of Coins of a particular crypto-currency is limited. According to the Code of the crypto-currency the maximum amount of available Coins can be different. The number of Bitcoins is, for example, 21 million limited, in the case of Ether there are almost 100 million and Ripple 100 billion.
The number of Coins on the cryptocurrency exchanges varies, of course, because at different times different people, and different amounts of crypto-currencies to sell at different prices. The total amount of the offer, however, is limited. The demand depends, however, sometimes of the other factors mentioned.
The development of crypto-currencies
The crypto currencies are still in their infancy. Although there are Bitcoins already since 2009, is the first crypto currency is still in development. The Code is constantly improved, and makes Bitcoins more and more powerful. At least this is the goal. With the Altcoins is similar – only that they had far less time.
With the advancement of technology goes hand in hand that more and more currencies for Crypto and used the Blockchain technology to be interesting. In many cases, then a Blockchain and the associated cryptocurrency other IT could replace infrastructures. To do this, digital payments, but also databases, contracts, etc. belong in the first place
Compared to other payment methods some of the crypto-currencies reveal the benefits of a faster Transfer and a decentralized settlement. This means that a middle man like a Bank or other financial service provider can be dispensed with. In the end, that will also lead to lower fees. In the B2B area, for example in the energy sector, transactions can be using the Blockchain and Smart Contracts carried out safely. The detour via a Clearing company, which handles the financial transactions between the parties, is then no longer necessary.
In addition, the locally stored information are unchangeable, so that a higher security against manipulation. This can be in the case of the storage of information is also useful and in some cases, the Blockchain can replace technology, Central databases. Due to the complex architecture of the Blockchain, but this is not always the best solution.
Mass adaptation in industry and business
If industrial companies and companies from other areas to see value in the use of the Blockchain technology, will also increase the value of the related crypto-currencies. The use of the Blockchain is always associated with the crypto currencies, which can be referred to as a “fuel” because the performances and the computational work of the so-called miners will be paid with the Coins. Therefore, the demand increases when companies use a crypto currency.
The interest of the company is meanwhile available, if not already. TUI already uses the Blockchain for the storage of inventory. Microsoft and Steam had accepted Bitcoin as a means of payment, but due to the rate fluctuations and transaction costs in the case of crypto-currencies backtracked. Bosch has invested about Robert Bosch Venture Capital GmbH in the cryptocurrency IOTA.
But of course, one must not forget that, you want to use crypto-currency as a type of alternative means of payment, especially in the economic-business operation, crypto-currencies just as stable in value. We mentioned above, varies alone the price of Bitcoin part of a day to several hundred dollars. And also in the transaction costs must be closer look. How in this Overview of the transaction costs is to see, you would have to face part of enterprise, horrendous costs, if all of the payments would be made through crypto-currencies such as Bitcoin.
Through the cooperation of the company’s new development jumps are also possible. Bosch relies on the Bitcoin Alternative IOTA, which allows micro-transactions in the Internet of Things and machine-to-machine communication. Thus, devices can transfer to each other, regardless of the people of IOTA, and thus, benefits to pay. So the refrigerator can be ordered, for example, lack of food, and at the same time pay or the gas pump at the gas station pulls out the money at the pump directly from the IOTA-Wallet of the car.
Regulation by governments
A complete regulation by governments is the case of crypto-currencies per se. Nevertheless, many state powers try to control the trade and to adopt laws that complicate the access to the crypto-currencies. Due to the decentralized structure of the digital means of payment this, however, is difficult. The transactions are in the Blockchain can be viewed, but by Private Coins such as Monero, Etc. to be a completely anonymous payment possible.
Even messages in connection with the attempt to regulate isolated, governments, crypto-currencies, are already leading to sharp price changes. In connection with the other mentioned factors will bring us in the next few years, another ascent and descent in the value of Bitcoin. Whether the courses that you achieve new heights, or gen Zero tend to be, remains to be seen and is also dependent on technology. If the Blockchain technology is, however, in the long term, can also benefit investors. In the crypto-universe, anything is possible.