How is Bitcoin doing on the market and what can we expect from the digital currency in the near future? A recent assessment of the Needham Report draws conclusions from all possible scenarios that could happen to the known crypto currency. One look at the report is enough, and it is already clear that the digital currency is on the right track.
According to the report, the Bitcoin acceptance rate is better than any previous expectations
With increased demand, the estimate of the price of the digital currency has also improved. The Needham report corrected its view for the future from $655 to $848 per bit coin. This improvement in the Bitcoin forecast is not reflected in the investments and derivatives of the digital currency, such as GBTC or other ETFs. The fundamental difference between Bitcoin and its derivatives forced the report to change the GBTC rating from BUY to HOLD.
While there are several reasons why the rating for GBTC might fall
The most telling is concerns about the scalability of the Bitcoin protocol. The block size debate is probably the longest dispute in the world. It’s been more than a year since parts of the community got ready to fight to find generally accepted solutions for the protocol’s scalability. So far without much success. Small groups of developers have met several times to present various innovative improvements to the blockchain. Some of their suggestions have had limited success. Mostly, however, until one or the other group has abruptly stopped working.
Unchallenged by the reactions, some developers have continued the development of the Bitcoin protocol. The new improvements to the Bitcoin protocol are even expected to exceed the prediction. The report’s list includes scaling, accelerated development time and innovation in the sector; improved features, as well as use cases for digital currencies. These should be indicators for a promising future.
“The dispersed group of developers who contribute to the code development for the Bitcoin reference client has, in our opinion, been very ‘conservative’ in dealing with protocol changes.
We view this “conservative” attitude as prudent, considering the large resources already invested in Bitcoin (Bitcoin market capacity > $9 billion) and since Bitcoin is used as digital gold, and since the users of a payment network must have confidence that there will be no extreme changes to the protocol label.
The Needham report has a separate section dealing with the scaling difficulties of digital currencies. The report seems to agree with the Bitcoin Core developers who want to implement a second layer rather than a hard fork that increases the block size.