Bitcoin is a cryptocurrency that has been around since 2009. Used by techies and geeks all over the world, Bitcoin can be used as a currency to buy everything from pizza to houses. Bitcoin is a digital currency that had peak value at $12,000 per coin back in 2017, but as of March 20th, 2019 it’s current value is $0.067051 per coin.
Its price is expected to rise again to $2,500 which is still a lot more than it currently is. This is why we decided to write this article and predict the price of bitcoin in 2022. The current market capitalization of Bitcoin right now is $52,867,697,582 USD. That’s a lot! And according to BitcoinWiki.org it has reached a market capitalization of over $138 billion at its peak back in December 2017.
What’s your prediction for Bitcoin in 2022?
Is the price of this cryptocurrency going to increase in value or is it going to remain at the same level? Let’s find out the answer.
Bitcoin has lost its traditional use cases as a transaction medium and a currency. In 2019, most of the cryptocurrency transactions are being done through crypto exchanges, and not through banking institutions. It’s now used mostly as a platform for launching and funding ICO projects (Initial Coin Offerings).
What is wrapped bitcoin (WBTC)?
Bitcoin is a cryptocurrency that is mined and traded. The system of mining bitcoin depends on the hash algorithm called SHA-256, which is used only once per block.
The process of mining bitcoin itself doesn’t require a lot of computational power. As long as there are enough miners in the blockchain network, the hashing algorithm will continue to function. Bitcoin has miners with their own farm machines that are optimized to mine new blocks and transactions throughout each block.
Each block is unique and can only be mined once. After that, the block is added to the blockchain, and all miners will start hashing for a new block, which can also only be mined once.
The system of bitcoin has two types of transactions: payments and transfers. Payments are used when users transfer bitcoin to each other while transfers are used when a user moves blockchain data from one address to another address.
How does wrapped bitcoin work?
Wrapped bitcoin is actually a data structure that was created by Bitcoin developers. Basically, it is a new way of storing bitcoin.
The wrapping process involves demarcation of the bitcoin transaction data. Then, it is hashed and encrypted by using the SHA256 algorithm. This process is called “wrapping” and it securely distributes the transaction data to different addresses.
The structure of wrapped bitcoin has been made to be used on different networks like Ethereum, where ether can be transferred back into bitcoin through a conversion of wrapped bitcoin (WBT) and plain bitcoin (BTC).
Wrapped bitcoin was created to overcome the potential limitations of bitcoin. Bitcoin has a block size that is 1MB, which limits and slows down the regular transactions of bitcoin.
Wrapped bitcoin was created so that users can transfer their bitcoins to other cryptocurrencies through smart contracts on the Ethereum blockchain. However, it’s likely that each wrapped bitcoin will be worth only one plain bitcoin in 2022.
Why did people create the wrapped bitcoin (WBTC)?
People created wrapped bitcoin so that they could transfer their funds from one cryptocurrency network to another without risking for loss or theft. It also makes transferring funds easier and faster when compared with using existing cryptocurrencies such as Bitcoin, Litecoin and Dogecoin.
Moreover, if someone loses their regular bitcoin through hacks or exchange hacks, they can access the funds from their “wrapped” bitcoin account.
In order to create “wrapped” bitcoin, users need to take a snapshot of all the transaction data of their bitcoin wallet. Then a new address is generated for each transaction and a hash of it is created. The data then wrapped using the SHA256 algorithm and the result is stored on different addresses that can be accessed by both sender and receiver.
Why will people use WBTC in 2022?
Bitcoin will not be used to buy goods anymore because most transactions nowadays are done through centralized cryptocurrency exchanges. Moreover, people have also given up on using bitcoin as currency and have instead started using it for different functions: transferring, trading and smart contract payments.
Today, you can use bitcoin to buy a car but in the future, you won’t be able to do that anymore. In 2022, we will see crypto-fiat transactions that allow users to pay with cryptocurrencies.
Bitpay is one of these companies. Bitpay offers merchants the option of converting their cryptocurrency into fiat currencies at any time and allows them to accept cryptocurrency as payment just like they would do with fiat money. Users can convert cryptocurrency into fiat money anytime they want to depend on the particular coin they use.
