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Bitcoin 2014 – Top predictions

51 pointsby ankitoberoiover 11 years ago

13 comments

reitzensteinmover 11 years ago
Here&#x27;s one that I&#x27;m sure I&#x27;m going to regret saying publicly later. But, here goes:<p>Dogecoin will outperform Bitcoin in terms of percentage market cap growth in 2014. Even if both are negative.
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fab13nover 11 years ago
Mining: if we&#x27;re to believe in free markets, fees will adjust to the amount of available CPU resources. I hope that it won&#x27;t be profitable enough for people to dedicate farms to mining, but that companies with a lot of CPU power will rentabilise their spare CPU cycles by doing a bit of mining with it. This would be reassuring, as it would keep mining decentralized, which is important to maintain trust in bitcoins.
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nwhover 11 years ago
&gt; <i>There will be less than 5 alt-coins (out of the 50+ in existence) that will survive 2014</i><p>From what I&#x27;ve seen the number is more like 3-400.<p>&gt; <i>Bitcoin community will solve problems including that of ‘anonymity’</i><p>Sorta already has, it looks like CoinJoin will be implemented into the mainline client when it&#x27;s mature enough.<p><a href="https://bitcointalk.org/index.php?topic=279249.0;all" rel="nofollow">https:&#x2F;&#x2F;bitcointalk.org&#x2F;index.php?topic=279249.0;all</a><p>&gt; <i>Kryptokit and Eric Voorhees’ Coinapult are promising start-ups in this direction.</i><p>I desperately hope they don&#x27;t gain any userbase, they are both woefully insecure products. Kryptokit can&#x27;t even maintain the claims it&#x27;s authors make. &quot;It has no central server&quot; — yeah why are these requests going back to your server then? The community suffers when it&#x27;s relying on insecure, half baked software like that.
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nkuttlerover 11 years ago
This guy certainly has a chatty crystal ball. Personally I&#x27;d recommend to everybody to ignore such &quot;predictions&quot;. And as always, keep in mind that this is a new technology and BTC itself might be worth $0.01 at the end of the year (even if I don&#x27;t hope so).
reqresover 11 years ago
&gt; 9. The price of Bitcoin is likely to range between $4000-5000 by the end of 2014<p>Setting aside the author&#x27;s flawed reasoning as to what drives demand for currency - I don&#x27;t see how this is a positive prediction for Bitcoin as I think it implies.<p>I&#x27;d like to see a decentralised currency work in the long run and the best thing for Bitcoin right now is to maintain stability against USD. It needs to prove itself as a trusted medium of exchange&#x2F;store of value.<p>My prediction for 2014: speculators will deal a big blow to the credibility of Bitcoin slowing down widespread adoption for any decentralised currency
marc0over 11 years ago
I&#x27;d say most of the predictions are sound. No 10 goes a bit too far though. Anyway, what I can&#x27;t understand is why this rumor of bitcoin being anonymous (No 4) is so persistent (maybe wishful thinking?). What&#x27;s necessary here is not a further technical development but rather some PR work (outside and unfortunately also inside the community of bitcoin users).
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rockdoeover 11 years ago
I&#x27;m surprised that it has essentially been shown that it&#x27;s easy to corner the mining market&#x2F;pooling such that 51% attacks are feasible, yet nobody is bearish over this.
emirozerover 11 years ago
&quot;Did i ever tell you the definition of insanity? Insanity is doing the same thing over and over again and expecting different results.&quot;<p>Invest big in bitcoin --&gt; pay writers to pump up hype articles --&gt; write hype related blog post --&gt; shoot out huge valuation --&gt; state that its future&#x27;s currency --&gt; repeat<p>Meanwhile in China:<p>Government warns people, bitcoin loses 400 dollars in value.. Yeah..right..something this volatile&#x2F;fragile just cannot become a currency..Stop the insanity, wake up.
fit2ruleover 11 years ago
The BitCoin Browser is going to be very significant. I hope someone &#x27;good&#x27; emerges to capture that market. It&#x27;d be rotten if there were a &quot;Microsoft Bitcoin browser&quot; and an &quot;OSX Bitcoin browser&quot; ...
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dschiptsovover 11 years ago
It will bounce around $1000, as a &quot;magic point&quot; on a low volume - those who still want it most would buy small quantities at a price range between $1000 and $800, and then it will crash, perhaps, around April-May.
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PaulRobinsonover 11 years ago
Predictions are basically hopes. When you look at them rationally, they are rarely based on facts but intuition. On this list:<p><i>1. More than $100M of venture capital will flow into Bitcoin start-ups.</i><p>No it won&#x27;t because if you ask VCs they will mostly tell you that the value can not be extracted easily into fiat currency and that&#x27;s what they need to still work in.<p>To that argument, some will say &quot;BTC-only VCs&quot; will emerge which is a regulatory nightmare, so would be restricted to angels only, or that the money will flow into making BTC&lt;-&gt;Fiat exchange easier, but that needs buy-in from the banks, and the moment they decide it&#x27;s safe to do, they&#x27;ll just do it themselves so there is no market for it.<p>Investing in BTC startups is a risky business as it is. Putting $100mm into them would be seen by the VC industry as positively insane.<p><i>2. Mining ‘will not’ be dead</i><p>If you run the numbers, it&#x27;s of marginal profitability at best right now (and in most legal use cases is a negative - you need to steal power from somewhere, basically), and the miners aren&#x27;t doing their maths very well. The poster&#x27;s opinion that smaller enterprises will move their mining out to the cloud means they haven&#x27;t done the maths either.<p><i>3. There will be less than 5 alt-coins (out of the 50+ in existence) that will survive 2014</i><p>This made me laugh. The fact alt-coins exist at all shows how the value of BTC is being misunderstood by both sides of the &quot;is this tulipmania or a revolution?&quot; debate.<p>The advantage of BTC is that it&#x27;s a decentralised &quot;currency&quot; based on open source algorithms and a network of workers validating itself, which can be easily replicated.<p>The disadvantage of BTC is it&#x27;s a decentralised &quot;currency&quot; based on open source algorithms and a network of workers validating itself, which can be easily replicated.<p>It&#x27;s biggest strength is also it&#x27;s biggest weakness.<p>If you can&#x27;t see that strength as a massive weakness, ask yourselves what value BTC intrinsically has over other alt-coins.<p>If you follow that argument down the inevitable rabbit hole you will eventually rationalise that the value is based on perception, much like fiat currencies of the modern era, and you will start hankering for the gold standard.<p>Except the perception of fiat currencies is so strong it is unlikely to be undermined by the majority. Is that true of BTC?<p>In essence, BTC will remain strong as long as people believe it will remain strong. But the moment the majority flip, or switch to an alt-coin like Litecoin, etc. then what value will it retain?<p><i>4. Bitcoin community will solve problems including that of ‘anonymity’</i><p>Anonymity is not the problem banks and governments are truly concerned about. If it were, cash would be phased out by governments just as much as BTC would be blocked. In general they are undecided but wary of BTC because it has all the hallmarks of a Ponzi scheme with mysterious founders who do not make their intentions known.<p>It is accountability of the system that is of concern, not accountability of the transactions within it.<p><i>5. US, China and other global forces will not be at the forefront of Bitcoin adoption</i><p>If you think that the US, China and other countries are &quot;global forces&quot; you need to look at corporate entities more and ask who has the money and who has the debt.<p>Either way, the fact that BTC could be a private currency that lets corporations run free from government control and &quot;tyrannical&quot; central banks is just going to force more legislation outlawing BTC transactions.<p><i>6. Indian ecosystem will be slow to evolve; limited to speculators and mining pools</i><p>As indeed will the rest of the World. There are no pure consumers in the BTC space - everybody in the BTC ecosystem right now is a miner or a speculator or both, and the transactions are a side effect of suddenly having a lot of &quot;money&quot; that can&#x27;t be easily turned into fiat currency.<p>There are few people - if any at all - who are using BTC because they perceive it as better for day to day transactions than fiat currency, because for the most part it is not.<p><i>7. The use of Bitcoin will evolve beyond ‘store of value’ or ‘transactions’</i><p>Adding metadata to the BTC blockchain is mildly interesting. Using the protocol for other purposes outside of the BTC transaction block chain (messaging, etc.) is much more interesting.<p>I have no doubt that the true value of BTC is the protocol that might inspire all sorts of wonderful P2P applications to emerge, but I don&#x27;t think it&#x27;s clear right now that any of them still lasting in 10-20 years will be currency.<p><i>8. The ‘browser’ of Bitcoin will come this year</i><p>By definition if you make a system easier to use, you have to make it less secure. If this happens, we can expect many more &quot;somebody stole my BTC because I left my web browser open&quot; stories.<p>Banks serve a useful purpose with BTC: they keep money safe. BTC needs something like banks to emerge, and that defeats part of the point of BTC.<p>And of course, it&#x27;s virtually impossible for BTC banks to operate because they can&#x27;t provide interest (BTC is designed to be anti-inflationary, and therefore by definition the concept of interest is hard to fit into the scheme of things), so people will either need to continue to struggle or we&#x27;ll see value being stolen regularly.<p><i>9. The price of Bitcoin is likely to range between $4000-5000 by the end of 2014</i><p>You could literally use a RNG to come up with predictions for 2014 highs this year on BTC. Here are 10 I just came up with, and all of them are equally valid: $0, $12, $87, $479, $2065, $3535, $5566, $9233, $65136, $72612. Pick one, it&#x27;s your prediction for the year. Well done.<p>And it&#x27;s that uncertainty that is driven by the fact the whole damned thing has so little liquidity and so much &quot;value&quot; is being sat on by speculators who could start a rush in under an hour, that makes it so hard for people to see BTC as viable long-term.<p>That then causes the effect that it is unlikely to ever become viable long-term.<p><i>10. Last but not the least – Satoshi nakamoto will be Time’s Person of the Year 2014.</i><p>Possibly, but I&#x27;m not sure if they give that award to ponzi scheme creators, so until they&#x27;re certain it&#x27;s not a ponzi scheme, aint going to happen.
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pixelcortover 11 years ago
My prediction is special-purpose devices that store private keys and sign transactions, without the ability to obtain the private keys directly, like smart cards.
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adrianwajover 11 years ago
Here are my predictions for the next couple of years (with a bit of wishful thinking thrown in):<p>1 - There&#x27;ll be a new Google for cryptos. It&#x27;ll come onto the scene at full-speed like Google did, not needing user requests, not caring about stepping on anyone&#x27;s toes. It&#x27;ll know what needs to be done. It&#x27;ll have a lot of creativity and a large Labs divisions. It could even introduce its own blockchain at some point, and may move into equity coins or alternate use coins. It&#x27;ll probably be based outside the US, or else have special government tie-ins if in the US as with Google. It&#x27;d likely require a highly libertarian government to work well if in the US.<p>2 - Bitcoin will retain its first-mover advantage but people will be aware of alternatives and be cool to work with a few.<p>3 - A new set of startups will arise that are unbiased as to what coins they work with... just like with the newer exchanges. &quot;Bitcoin-only&quot; as a syndrome or as a consequence will be and old mindset. Bitstamp, Blockchain wallet, Mt Gox - the mainstays of the current system will adapt or fade from domination. It will be a demonstration of strategic agility and scalability.<p>4 - More alliances between exchanges&#x2F;wallets&#x2F;ecommerce providers&#x2F;banks. More conferences.<p>5 - Certain countries will attract more cryptocurrency innovation than others depending on their policies. They will accept bitcoins and altcoins for tax payments, and use them for spending on government projects. They may create their own blockchain, and give tax incentives and tender advantages to businesses using the government chain.<p>6 - More businesses will want move into cryptocurrencies, but it&#x27;ll take startups to offer the software and solutions that will enable them to do it.<p>7 - Shopping carts will start offering bitcoin and cryptocurrency payment options (as modules) which tie-in with the larger global exchanges or smaller local ones (or they&#x27;ll run their own exchanges) that autosell coins as they are received by shoppers. An advanced wallet may move into this space as well: a wallet that is shared by buyer and seller means no waiting for confirmations.<p>8 - The price of bitcoin will determine to a large extent the price of other coins, but slowly coins will decouple.<p>9 - The price of coins will go up, but be contingent on events that force or scare people to move into cryptocurrency.<p>10 - Logistical loopholes will be found in China to purchase cryptocurrencies. More Chinese will simply obtain them by trading with people outside of China. Pressure may come from Chinese sellers on ebay, and ebay may take large fees for enabling it.<p>11 - Many new metrics beyond market cap will help evaluate coins to consumers and businesses. One&#x27;s holdings may move between coins automatically into the most stable or rising one - or alerts will be given to prompt for this.<p>12 - Proof-of-stake coins will fine-tune themselves and the dev teams of older coins will offer straight conversions into 2.0 versions of their coins - an upgrade, but not necessarily a compulsory one, ideally backwards compatible. Also blockchain pruning will occur.<p>13 - P2P pools and other improvements will become more important to 1.0 coins, and there&#x27;ll be pressure for an &quot;x86 architecture for life, but with improvements&quot; type mindset from many coin holders and their dev teams.<p>14 - New point-of-sale options for physical stores involving chip or swipe cards based on commodity hardware as people want to spend their coins in everyday life -- and others will see them doing it.<p>15 - More people resisting cryptocurrency or ignorant of it will be forced to use it, just like email, web, mobile phones. The sign of true viral software.<p>16 - AMD, Intel and other large chip-makers will move into this space with tailored products, or be looking for acquisitions in it. Dedicated appliances could become a reality as well as systems built for the cryptocurrency space - in all price brackets. Similar to Google&#x27;s Search Appliance.<p>15 - Old financial institutions will lower their fees, or improve their services as enabled by present cryptocurrency technology to be implemented. Consulting firms will seek solutions in this space to sell to banks and financial institutions.<p>16 - There&#x27;ll be a bitcoin-related IPO. One of many to come. New asset classes and mutual funds will arise that expose investors through conventional means to cryptocurrency based instruments.<p>17 - A meme like Dogecoin can spread to zombies. For better or worse, look out. But, other countries will create their own language coins equivalent to Doge, perhaps by governments, which they will premine for themselves. And governments will want software to do that. So too with corporations. 2014&#x2F;15 - the year of the premined, forced alternative.