Finally, we have said "goodbye" to 2020. It was not the best year for many of us, right? however, it perhaps was the most pivotal year in Bitcoin's storied history...
We've witnessed an enormous wave of adoption by institutional investors raising Bitcoin price to achieve an amazing ATH.
Gone are the days when it was viewed as magic internet money that's mostly used by drug dealers and fiends. It's now a well-respected asset that's able to attract investments from high-profile companies and corporates...
I believe that institutional adoption will keep going forward and broaden further during 2021. It's something that makes all of us bullish for next year. However, there is actually another component that leaves me even more bullish and that is the potential Bitcoin updates.
It's no secret that bitcoin (in its current situation) is not perfect for being an anonymous medium of exchange or a store of value
Transactions are extremely slow, expensive, and traceable - all of which plague Bitcoin and keep it fall short of its intended purposes.
Well, the good news is that all these problems are not going to last for a long time, indeed, there are some very important tech changes moving ahead nicely and can really take place next year...
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Schnorr signatures:
In a nutshell, Schnorr signatures are a unique way that allows all transactions to be grouped, so that multi-Sig and single-Sig transactions are indistinguishable and hence make it harder to identify where coins were sent.
This will, in turn, mitigate the danger that comes from tracing your transactions by a third-party snoop and will improve the privacy and efficiency of Bitcoin protecting it from tracing or tracking.
If you want to dig deeper into the programming details, here is a link for further information:
https://academy.binance.com/en/articles/what-do-schnorr-signatures-mean-for-bitcoin
Bitcoin's programming language:
This year, we are also going to see a big upgrade in Bitcoin's programming language through TapScript which will allow for more complicated scripts to be run on Bitcoin, in other words, it could reinforce Bitcoin's smart contract capabilities and therefore enhance its usability and functionality.
These improvements are likely to take place through a "soft fork" at some point during 2021, this is because 91% of miners have already indicated their support for the upgrade.
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Tokenization of Bitcoin:
We saw an increasing trend in 2020 which was the explosion of bitcoin being wrapped or tokenized on Ethereum. There is now 2.6 billion dollars of bitcoin wrapped in tokens such as wbtc, renbtc...etc.
This Tokenization has opened the entire DiFi world for Bitcoin and it also created away that holders can send Bitcoin easier and cheaper than they could do on main chain.
There is now news that polkadot is also going to have its own version of tokenized BTC.
Once deployed, users will be able to mint 1:1 Bitcoin-backed assets onto Polkadot, as PolkaBTC
This will grant Bitcoin the advantages of other chains (speed, cheapness, smoothness...etc) and prepare it further for mass adoption.
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What so you guys think about what I've mentioned?
Are bullish on Bitcoin for next year?
I'm keen to know your opinions and thoughts...
Happy new year for all of you ??
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