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Few people could have predicted the rise of the next great financial phenomenon that is crypto currencies. One could even equate it to the fervor felt at the turn of the 19th century when skeptical Americans thought it foolish to trade their hard-earned pure gold for federal paper currency.

The reality is, Bitcoin has demonstrated a relative stability and potential to be a real mainstream currency. It is live in our financial system and as banks begin to respect its status, Bitcoin will only become more prominent in our culture as a financial instrument. As more and more people learn about Bitcoin(, it’s reach widens.
Here are some of the things Bitcoin has in store for us.

Decentralization Needs to End

If Bitcoin has any hope of maturing to the point of becoming a mainstream currency, the decentralization that has been the hallmark of the Cryptocurrency needs to come to an end. Currently, Bitcoin is nothing more than a sophisticated database of records indicating who owns what and how much.

For investors in the mainstream, this is not good enough and there needs to be some assurance that their money isn't going to evaporate into magnetic fuzz. In order for that to happen, there needs to be some centralized governing body that is an authority over Bitcoin. Without that, the currency cannot obtain true stability.

Regulation of the Blockchain

As of the time of this writing, Bitcoin miners work on building the block chain which is essentially a record of transactions. These records show how the currency has changed hands over time and groups of transactions are typically blocked together.

Currently there is no pre-requisite to be a miner and the process is not regulated at all. Most countries ( have little to no regulation for any Bitcoin activities such as trading or mining. No regulation of any kind goes back to the fact that there is little stability for serious investors. And for Bitcoin to be a serious currency, it needs high-end investors to take it seriously.

That won't happen until activities have some type of oversight but a recognized authority. If Bitcoin eventually makes it into the mainstream financial markets, that oversight will eventually happen.

Is There A Bitcoin Bubble?

Like the answer to many things, it depends on who you ask. For the major players in traditional stocks and securities markets, they wouldn't touch Bitcoin (or any other cryptocurrencies for that matter) with a ten foot pole. Many professional bankers( have also called out Bitcoin as a speculative bubble.

If you ask some more enlightened and visionary traders, they will tell you that Bitcoin is the natural evolution of currencies. It embodies the notion that you don't really need physical currency or material to possess value. That these instruments are crude and archaic and that all you really need is a record of owning an asset and not the asset itself to earn income from it or use it in a financial transaction.

Ultimately, the future of Bitcoin is uncertain but it does have a future of some kind. Whether or not that future is full of growth and maturity of Bitcoin will be determined by the willingness of markets to accept oversight, regulation, and stability.
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