Published on October 22nd, 2022
Blockchain and bitcoin technology can address many challenges subjected to finance. However, what will it take for the BTC blockchain to take off? Whether bitcoin is a bubble may be almost irrelevant considering the tech sector’s interest in blockchain technology. Go to https://bitcoin-profit.cloud/ the most trusted platform for trading Cryptos, stablecoins, and other coins.
With such high investor confidence and strong underlying fundamentals, the question is how to allocate capital as a resource-intensive and disruptive asset class appropriately. Hence, the need for a “blockchain of blockchains” The widespread use of blockchain technology would enable any organization to track their products from origin to sale and beyond. This way of doing business allows companies to create and alter records without oversight freely.
The decentralized nature of the blockchain would be a key enabler for entrepreneurs in the supply chain industry to break free from traditional systems. But, even more intriguingly, it would also help create what is known as digital twins or digital dummies that could serve as a replacement for physical goods or streamline inventory in the supply chain process.
Blockchain technology is here to stay; as it improves, we will see more industries interested in its development. This technology also can address many issues that companies face in the supply chain industry, from counterfeit products and toxic ingredients to suboptimal inventory tracking. However, blockchain technology is still very much in its infancy and must be treated cautiously.
What’s next for bitcoin?
Experts believe that the recent fall in bitcoin value will not be an obstacle for this technology since it will eventually recover. Therefore, we predict that by 2023, at least more than one country will use blockchain and bitcoin technology as a framework to boost its economy. Already, we can see some companies start to fork bitcoin and develop their blockchain based on the technology of the bitcoin network. Experts believe that more blockchain networks will come to life, but it will take another two years for them to reach a similar level as Ethereum.
Regulatory Framework for bitcoin and blockchain to take off?
It means that the roles of central banks, investors, and banks are changing in favor of different actors. On the other hand, this technology’s development has benefited society by allowing people to participate in financial transactions. The experts have presented recommendations to governments worldwide when formulating regulatory frameworks for virtual currencies.
The experts believe it would be prudent to create a legal framework allowing innovative technologies, such as cryptocurrencies or blockchain, to be traded. In addition, it should consider issues like tax evasion or money laundering associated with traditional currencies (like the US dollar) and the trades they facilitate. However, people should not consider this technology a currency as its value does not match real-world value.
The research advises regulatory framework transparency regarding the potential risks of using blockchain technology and virtual currencies. It is meant to make it easier for consumers to understand the risks of bitcoin and its underlying technology. Furthermore, it could help people know what they invest in to prevent fraud.
The regulatory Framework should also consider regulation on the trial of cyber security breaches and the development of new infrastructure needed to support large-scale networks capable of processing cryptocurrencies or blockchain transactions. It is needed since it would be easier to trace where attacks were coming from, thus preventing them in the future.
Regulations lead to mass adoption
While the US market is still being developed, it is expected to dominate the market of blockchain technologies in the future due to its legal Framework. In contrast, India has already operationalized a pilot program for bitcoin on top of an existing payment system called person-days which is run by payment applications. The Indian government aims to use technology to improve financial inclusion, targeting hundreds of millions of people living under the poverty line who do not have access to traditional banking services.
The European Commission is considering creating a “Blockchain Observatory and Democracy” to create regulations to help businesses create blockchain solutions that can help fight fraud and control tax evasion. It is a step in the right direction to help create a legal framework that would benefit users of this technology.
Cryptocurrencies have not yet become stable currencies, instead fluctuating wildly in value. Moreover, since transactions are possible without intermediaries such as banks or payment processors, there is no way for governments or institutions to monitor funds that are exchanged.
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