After an analysis carried out by Binance Research, the freedom that characterizes Bitcoin within an ecosystem that is mainly managed with supposedly centralized projects is confirmed once again. Unlike the rest of the cryptocurrencies in the environment, which are managed with certain guidelines such as solid roadmaps, foundations and/or central developers; instead, BTC itself does not have a defined roadmap at all.
According to the analysis, the renowned digital asset has been, and continues, following a path that manages to stand firm in the face of change.. Bitcoin, following in the footsteps of Satoshi, has managed to install in its community, both technically and culturally, decentralized money and the ease that accompanies it.
“Bitcoin has innovated at a much slower rate than other cryptocurrencies, leading some to wonder how Bitcoin utility fares when compared to proof-of-stake smart contract platforms like Ethereum, BNB chain, etc. ” added Binance Research.
Although Bitcoin’s innovations are not as palpable as other innovations that tend to be trends, this does not mean that the cryptoactive is not producing them.
The Bitcoin halving is expected by 2024
What is known as a “halving” occurs in the Bitcoin blockchain and is a core protocol event. This event takes place every four years and is the same one in which the rewards are reduced to half of them.
For Bitcoin to “maintain scarcity and be impregnable against inflation” it is necessary for “halvings” to occur. Which, in addition, occur every 210,000 blocks until the offer of Bitcoin or that of the coins that have already been mined reaches 21 million BTC.
Taproot Update Supports Bitcoin Innovation
“In November 2021, the Taproot update (soft fork) was enabled to bring more efficient validation of multi-signature scripts to Bitcoin.” specified Bitcoin Research in the analysis. Taproot is a technology that improves privacy and block storage by reducing the size of difficult transactions that occur within the network.
“Taproot has been seen as a progression for programmability in Bitcoin” expressed Bitcoin Research, although in the same way, Taproot with this update is making inroads into other cryptos that are just starting out.
Bitcoin as legal tender in more geographic spaces
In addition to El Salvador, Bitcoin is now also legal tender in the Central African Republic (RCA), in both cases, according to Bitcoin Research, this is due to “its scarcity, accessibility and resistance to inflation.”
Likewise, cryptocurrency is also breaking through digital barriers. Digital platforms such as: social networks, wallets and exchanges are becoming compatible with Bitcoin payments.
Bitcoin Research projections for 2023
By this 2023, Bitcoin Research will be following the following six trends within the cryptographic ecosystem:
Macroeconomics Matter (macroeconomics matters): Following Bitcoin Research, the macro environment “is the key” for the profitability of active risks to gain strength. It is still too early to determine if this year the macro elements will favor cryptocurrencies or not, but the basic bases that will help this are central banks, recession risks and world growth data. As cryptocurrencies mature and the ecosystem continues to welcome institutions, “the correlation between traditional and crypto markets could increase,” Bitcoin Research noted.
Real-world assets as an alternative source of growth (real world assets as an alternative source of growth): Some projects that involve DeFi’s or NFT’s may venture outside the crypto ecosystem with the aim of achieving alternative growth to what you can obtain within the crypto environment. This union with the assets of the “real world” can be given through the tokenization of assets and/or the acceptance of the assets of the real world as an alternative.
Liquid staking narrative gains steam (The narrative of liquid staking gains strength): There is little left for the date on which the ETH was bet can be withdrawn, so elements such as will, understanding and awareness will be necessary to be part of the bet. In this case, liquid participation protocols can reap benefits as well as produce changes in market share.
Utility is key for NFTs (utility is key for NFTs): Regarding NFTs and their next phase of adoption, it is expected to “advance beyond the NFT image profile” In addition, it is expected that this time the innovation of tokens are linked to the soul , partnerships with web2 companies, integrations with blockchain games, among other real world factors.
Improvement in gameplays (improvement in games): It is expected that video games will see more performance from developers to improve the gaming experience of the next generation of blockchain games. A proposal for the field of video games is the creation of AAA quality games, so that the attraction of players can be increased.
Greater regulatory clarity (greater regulatory clarity): After a year and a half of changes and progress within the cryptocurrency regulatory framework became noticeable, regulators are now expected to be a little more “skeptical” and to regain some confidence lost, although, it is clear that it will not be an easy task. In the same way, its regulation offers a clearer picture that will benefit the blockchain environment in the long term.
The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.