Bitcoin is undoubtedly the crypto world's king, driving the development and adoption of digital currencies. That is mainly because of its decentralization, enhanced transactional security, faster payment processing, and low-cost money transfers. Bitcoin is the world's first successful cryptocurrency, and that has earned it a unique competitive edge over the other virtual currencies, attracting mainstream institutions, businesses, retailers, and individuals worldwide.

The increasing Bitcoin adoption indicates its growing worldwide acceptance as a store of value and payment method. However, its massive success has also attracted criminals seeking to benefit from the bubble. Besides, it is also a highly volatile currency whose value primarily relies on public perception. Such attributes have impacted growing concerns on whether Bitcoin could be a safe investment. So, how secure is Bitcoin's future?

Bitcoin's Vision

Bitcoin's developer, Satoshi Nakamoto, launched it as a borderless and decentralized financial instrument, free from government or central banks' influences. They intended it to be an alternative currency to paper money. Unlike fiat currencies, Bitcoin transactions do not require third parties or intermediaries. Instead, they occur on a peer-to-peer network powered by blockchain technology.

Blockchain technology verifies and validates all Bitcoin transactions on a shared public ledger, accessible to all users. The technology uses encryptions to store transactional data in blocks. The Bitcoin network comprises several nodes or computers, randomly distributed across the world. Each node holds a ledger's copy, making it almost impossible to compromise the data. Besides, the catalog is permanent, and even users cannot change the data after validation.

More than 18 million Bitcoin tokens are currently circulating in the market, with many leading crypto exchanges like Bitcoin Evolution reporting increased trading volumes daily. Many institutional investors now use Bitcoin as an alternative investment to protect their assets from inflation. Its underlying blockchain technology has become an innovative tool, transforming various business processes outside finance, including real estate and healthcare.

Risks of Bitcoin

The Federal Trade Commission says cryptocurrency crimes contributed to a median loss of $1,900 per report between October 2020 and March 2021. Hacking and fraud are the most significant security risks associated with Bitcoin. Hackers and fraudsters often use scams to steal Bitcoin from unsuspecting users and crypto exchanges. Other dangers also result from fake Initial Coin Offerings and crypto pump and dump schemes.

Regulators and forensics firms have developed various mechanisms to counter those risks. They have reported a few successes in the past months, recovering stolen Bitcoins and unmasking the criminals behind those schemes. With the ongoing technological developments, they could soon find the best solutions to Bitcoin hacking and fraud. Besides, the Bitcoin network also conducts continuous development to seal the existing loopholes and improve security.

Bitcoin's Future

As we move into the future, many investors are increasingly worried about Bitcoin's long-term value. Like other cryptocurrencies, Bitcoin has high volatility, meaning the prices move up and down, based on public perceptions. For example, Bitcoin lost more than 80% in 2020, dropping from $20,000 to $3,500 but the price has now surged to $51,000.

Although Bitcoin's volatility presents a significant risk, it is also an opportunity for savvy investors to profit. For instance, those who bought Bitcoin before 2010 can now sell them and make massive profits since the price has increased over the years. Economists predict the crypto ecosystem and Bitcoin's value will significantly expand in the coming years, offering users even more excellent opportunities for profitability.

Financial markets analysts are confident Bitcoin and the improvements in its underlying technology would facilitate the proliferation of low-cost, instantaneous, and secure cross-border money transfers in the future. Bitcoin's increasing institutional adoption also positively impacts its reputation, strengthening its value proposition as a safer store of value and payment method.