network: Bitcoin Taproot potential impact and price predictions

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.

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.

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.

Engineer

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 Schnorr signatures won't solve all the problems Bitcoin has, but it's a big advance to mitigate some of them: enhanced privacy, increase throughput and decrease gas fee since data are reduced and then a bigger amount of transactions per block can be stored and mitigate malleability. This means Bitcoin will see enhance user data privacy, secure transactions and scale the network. As a consequence, the potencial use of bitcoin will be increased significantly. But this won't be translate to an increase of BTC price in 2022. And this is because Bitcoin and, in general, crypto world, will be affected by the Tapering process Central Banks are going to implement during the end of this year (it has already started) and next year. It is true that if potencial use is increased, the future downtrend for Bitcoin can be mitigated, but not reversed.

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

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.