Top 10 Bitcoin Predictions for 2016

Charlie Woolnough, co-founder of Bitcoin business services company CoinCorner, gives his thoughts on the current state of the Bitcoin industry and his predictions for how the industry will perform in the next year.

The Bitcoin industry is still a long way from maturity. Unfortunately, many companies are overly optimistic about the industry's growth expectations. The reality is that there is not enough volume to support all the exchanges, payment gateways, and wallet providers that have sprung up, let alone those secondary service providers (such as Bitcoin compliance solution companies).

Tighten your belt

Many companies will need to take radical steps to ensure they survive in the coming years as consumer adoption catches up with operator expectations. We are already seeing signs of this, with some companies that have failed to meet the survival criteria being forced to close, resize, pivot, or merge with competitors.

This trend will accelerate over the next 12-18 months. Even companies that have raised a lot of investment are not immune. In fact, they already have different types of pressure to deal with, including investor expectations and the pressure of the next round of financing.

Businesses that are backed by patient investors, or that can operate at low costs, will be best suited to survive.

Blockchain needs Bitcoin (at least for its user base)

Many investors are chasing so-called 'blockchain ideas'. However, it is not always entirely clear how these ideas can generate revenue or gain traction with users. It would be wise to target consumers and build more partnerships with companies that are already operating in the Bitcoin industry and have a sufficient number of users.

It’s hard to imagine that people who have never tried Bitcoin would suddenly start registering assets on the blockchain.

Of course, those who have already adopted Bitcoin services will be the most likely early adopters of blockchain services. For many people, Bitcoin will be an entry point to blockchain.

Problems in the banking industry

When it comes to Bitcoin going mainstream, we’ve talked about it more than once, saying it needs a killer app. But don’t we already have a very cheap way to make peer-to-peer payments? All we need is a more seamless user experience between traditional finance and Bitcoin.

The current relationship between Bitcoin and banks is awkward, but if this relationship can be improved, Bitcoin can thrive.

So how can we bridge the gap between banks and Bitcoin? The answer lies in regulation and compliance, which is what banks love most.

Top 10 predictions for 2016

1. Bitcoin companies that have only one line of business will become increasingly disintermediated by companies that offer multiple services.

2. Investors chasing blockchain investments will, after coming full circle, partner with more established Bitcoin companies.

3. Sadly, more Bitcoin companies are about to close or merge.

4. Bitcoin adoption will continue to move forward slowly, and the public will have to wait until the future to accept Bitcoin.

5. As the relationship between banks and Bitcoin companies begins to thaw, more complex Bitcoin regulatory solutions will enter the market.

6. We will see fewer and fewer pure-play Bitcoin startups because the ones that already exist have already taken too much of a lead.

7. Bitcoin laws will develop at a faster pace, which can add credibility to the relevant authorities.

8. There will be more fraud related to altcoins.

9. Investment in the Bitcoin industry will enter a period of stagnation until consumer adoption increases significantly.

10. The price of Bitcoin will remain relatively stable in the range of $200-300.

Final Thoughts

Ultimately, Bitcoin will survive and gain greater public adoption, as the technology is simple yet impossible to ignore. However, it remains to be seen whether many of the companies currently operating in the industry will survive long enough to reach the promised land.

A lean and frugal business model will be key to the survival of bitcoin companies in 2016, as will a loyal and growing customer base.

To learn more about the development of the Bitcoin and blockchain industry in the third quarter of this year, you can check out CoinDesk’s latest quarterly report.

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Original article: http://www.coindesk.com/what-2016-holds-for-bitcoin-businesses/
By Charlie Woolnough
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information