defi: Bitcoin Taproot potential impact and price predictions

defi: Bitcoin Taproot potential impact and price predictions

< Show Wisdom Collection: Bitcoin Taproot potential impact and price predictionsarticle avatarSean Larkin

Traditional, Blockchain and Crypto CFO - Member of MMBA

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 you combine the rollout of Taproot in November of 2021 with bitcoins location within its' market cycle, we could see a uniquely bullish 2022 (at least early on). There is no denying what the 'visions of defi' did for the Ethereum price during the first legs of this bull run. Now, we will get to see what that looks like within the massive bitcoin market. Taproot will lead to both the (long deserved) adoption of the Lightning Network, a 2nd layer btc payments solution), and also the adoption of, bitcoin native, defi solutions. With those two developments in mind, I am not going out on a limb to suggest this could lead to significant hype, development, and price appreciation of btc.

article avatarOlagbadun Olatunde

Cryptocurrencies Trader, Revain Author

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?

Many are interested in the potential of Decentralised Finance. With Bitcoin getting on the bandwagon, we can expect a positive outlook for the major crypto of the market. Lower fees, popularity of BTC and more privacy would be more reasons why anyone will choose Bitcoin Taproot development over any other Defi Protocol in the crypto verse currently.

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 avatarKarthikeyan Ramachandran

Business Analyst /Blockchain Enthusiast

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 was first proposed by Gregory Maxwell of Blockstream and how schnorr MAST and taproot are interconnected is technically explained in the article https://bitcoinmagazine.com/technical/taproot-coming-what-it-and-how-it-will-benefit-bitcoin In short, Taproot helps in reducing the size of the Bitcoins transaction thereby helps with more transactions per block which mean increased TPS and decreased fees. Also once Taproot is enabled, the size of a multiparty transaction would be the same as normal transactions, it will allow the smart contract functionality to get developed on the Bitcoin network. So what would be the economic or financial impact? The simple answer is huge. The current usage of Bitcoin in DEFI is negligible. Even USDT issued in Omni protocol has fallen behind the USDT issuance on ETH and TRX. With multiple Uniswap variants getting developed ETH, BSC has pushed bitcoin to a side actor in DEFI field. So Taproot functionality can unblock the Bitcoin Usage and helps in DEX and DEFI apps getting created on the Bitcoin network itself . We need to note that wBTC issued in ETH itself worth 6B in market cap. Lightning Network can act as the second layer as how Polygon is helping Ethereum in reducing fees and block congestion. So the DEFI can shift towards Bitcoin, being the leading cryptocurrency in market cap and held by the most crypto believers, once Taproot and Graftroot are completely implemented.

article avatarMiguel Rodríguez García

Investment, B2B sales, business developent, marketing.

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 important for BTC and probably will help reduce the impact and duration of a possible bear market in my opinion. With all the different things going on at the same time is difficult to determine exactly how much will impact the price but I would say is one more factor to bring new people to BTC with the DEFI posibilities.

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

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