blockchain: Bitcoin Taproot potential impact and price predictions

blockchain: Bitcoin Taproot potential impact and price predictions

< Show Wisdom Collection: Bitcoin Taproot potential impact and price predictionsarticle avatarFrederico de Abreu

Research and Development

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

If all goes according to schedule, in the third Quarter of 2021, a new light will start to shine on Bitcoin and its Blockchain, with the Taproot soft-fork that will enable Smart-Contract capability and a bigger privacy based set of rules. The Schnorr signatures will allow for a more concealable way of transacting, in which a single user will be indistinguishable from a group of users. Allowing this way for a Complex Bitcoin transaction, that contain multiple key to be arranged in to a single Schnorr signature, that will reduce considerably the amount of data transferred and stored in the Blockchain. Another key aspect is the removal of Malleable signatures. Once a transaction is signed, it can not be removed or changed, even if the transaction is still undergoing confirmation time. The Smart-Contract is the way that Bitcoin will continue to maintain adaptability and dominance in a market it first served as foundation stone. Making the way clear, for a number of institutions that hold Bitcoin in their portfolio, to deploy their services to an ever-growing range of adopters of the cryptocurrency. Overall, Bitcoin will benefit in full as the new set of rules will bring a better utility for the Blockchain itself, other than transacting cryptocurrency on a P2P base. Sources: https://bitcointaproot.cc/ https://www.nasdaq.com/articles/taproot-activation-brings-massive-upgrades-to-bitcoin-2021-06-12 https://academy.binance.com/en/articles/what-is-taproot-and-how-it-will-benefit-bitcoin https://www.cnbc.com/2021/06/12/bitcoin-taproot-upgrade-what-it-means.html

article avatarVision N

Full Stack Developer / Crypto / Blockchain

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

First of all, a major upgrade of the Bitcoin blockchain was done four years back. Now, the Bitcoin Taproot upgrade is highly anticipated and expected to come into existence from coming November. Most of the Bitcoin miners agree to support this upgrade; hence, the consensus has been already achieved as it is the first and biggest public blockchain network. Taproot upgrade has two important points to consider: 1)This upgrade will enable better privacy and transparency in transaction 2) For the first time, the Bitcoin blockchain will be supporting the smart contract feature after this upgrade It is expected, Taproot upgrade will allow users to use the smart contract feature cheaply and effectively in the Bitcoin blockchain network and that will inspire them to implement the real-world applications into the Bitcoin blockchain network. IMHO, it will impact the price of Bitcoin and the crypto world due to the following reasons: 1)If use-cases of Bitcoin increase, its demands will also get increased, and hence, the price of BTC will also increase. 2)Taproot upgrade will get adopted by mainstream finance that will inspire mass adoption. 3)Transaction cost will be lowered due to the reduced data size of BTC transaction 4)More flexibility in the Bitcoin blockchain network.

article avatarFredrich Eb

Blockchain and Crypto Project Consulting

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

Taproot is the real deal as far as upgrade to the Bitcoin blockchain is concerned. The vastly improved versatility of the programability of its transactions will go a long way to cement confidence in it both as a Store of Value and as a Currency. When properly implemented by end users, the upgrade can make it impossible for hackers to steal bitcoin even if they succeed in hacking a site where it's stored. This is because the transaction may have been coded to move only when a certain precondition is fulfilled. A precondition the hackers won't be able to see because, again, those details have been obscured by the new privacy feature. You can't hack what you can't see. This renewed confidence is bound to resonate throughout the DeFi and CeFi world world, and will in turn attract more investments even from the staunchest doubters out there. Given this certain influx of fresh investments into bitcoin and, by proxy cryptocurrencies, their lives will surely receive a boost in 2022.

article avatarTony Kunz

Founder | Innovator | Advisor | Decentralized Business Consultant

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

Taproot will be a very impactful change to the Bitcoin ecosystem especially because till now many Bitcoin folk have been content with the primary application of exchange of value. By making the Bitcoin Blockchain support smart contracts natively and given the massive uptake the exciting possibility is the ready market for smart contract services, however the token limit of 21 million becomes something to pay attention to as with smart contracts the volume of transactions will go up exponentially impacting transaction fees. it is not inconceivable Bitcoin may have to transition away from it's current PoW model and possibly it's 21 million limit. However this will bring more interesting challenges as hardliners have been adamant that that limit be retained.

article avatarAle Limón

ingenieer

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

By reducing the amount of data that will be transferred and stored on the blockchain, the information will be more compressed, therefore improving the efficiency of the ecosystem. This will result in a higher transaction rate per block, which will ultimately lead to lower transaction rates. And by improving privacy, it will increase investor confidence, increasing demand and at the same time causing an increase in the price of BTC once the update is implemented.

article avatarLance Brady

Analyst

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

In my opinion I think the impact it'll have will cause alot of panic but it will also drive "mainstream" users to get more involved in blockchain technology. It will also raise more awareness that bitcoin isnt just a stock. That it is an actual technology with an actual function. So to sum up I say that the overall impact will be highly beneficial to blockchain technology and it will bring alot more younger minds to start learning more about blockchain and will hopefully give the blockchain world some very exceptional new developers and thats exactly what we need In these unpredictable times. After the initial panic dies down people will eventually feel more secure and comfortable. We have to remember blockchain is new to mainstream. It will get worse before it gets better. Thats ok though we can handle it.

article avatarAthanasios Sarigiannidis

Algorithm creator, coder, chem. engineer,trader,investor

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

my opinion on this subject comes based on the time an only. that is the case because Taproot as an upgrade was inevitable. the proposal has only to bring positive things in BTC ledger but the timing is not right. we are on the cusp of institutionalization and actually making the world understand how secure BTC is and that it's ultimate purpose is decentralization and secure transactions on a public ledger. this is not a time for Taproot. Taproot's upgrade privacy attributes should come only as a layer 2 solution in my opinion and it should come later on BTC existence. the tokenomics of Taproot pointing towards the up side ofcourse and it s another step towards making BTC money because as for not BTC is that slow hard wealth storage with no functional smart contracts. all that will change soon before 2022 Q1 in my opinion. is the time right? my opinion is no. in blockchain we trust.

article avatarLester Liwag

Trader

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

The economic and financial impact would Taproot have on the crypto world till the end of 2022 is maybe having equality of the value of the crypto which may open more blockchain project as well as the nft and blockchain games. And the BTC price will be affected by this taproot so the dominance of this coin will evenly split off and the altcoin also part of the valuation of the price of BTC.

article avatarnoe tsertsvadze

Mechanic

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

Taproot is a soft fork that improves Bitcoin’s scripts to increase privacy and improve upon other factors related to complex transactions.In fact, Taproot makes it possible to hide the fact that a Bitcoin script ran at all. For example, spending Bitcoin using Taproot could make a transaction in a Lightning Network channel, a peer-to-peer transaction, or a sophisticated smart contract become indistinguishable.the upgrade is called Taproot, and it's due to take effect in November. When it does, it will mean greater transaction privacy and efficiency – and crucially, it will unlock the potential for smart contracts, a key feature of its blockchain technology which eliminates middlemen from even the most complex transactions

article avatarstan vlad

designer

What economic and financial impact would Taproot have on the crypto market till the end of 2022 and how the bitcoin price will be affected?

taproot and Graftroot technologies are complicated in their own way. , these are Blockchain Privacy Technologies that hide the source and the destination of a transaction. It's similar to multisig or coinjoin. Therefore, they are on the same level as DeepSend. Tor on the other hand provides Network Anonymity, as in anonymous IP addresses that can't be linked to addresses and transactions, which is already what the DeepOnion wallet does. Bitcoin will reach an average price of US$280,000

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.

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