taproot: 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.

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

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.

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.

Crypto 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?

With the features the taproot integration comes with i can say, will be of a great improvement to the economic and financial sector of the crypto world because, as more confidence is created the more purchases are made which we know will lead to growth. By making bitcoin transactions less costly too will lead to more and bulk purchases which will definitely be of a positive impact on price.

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.

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.

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?

Hi It's my idea. BTC is the King of crypto world. So any upgrade or small change will affect to BTC price and altcoin price. BTC is old. And have many problem as slow transaction and high fee. Sometime users still getting error on code of BTC. With new upgrade on Taproot, we look forward to BTC great again. It will help help improve Bitcoin's scripts to increase privacy and improve other factors related to complex transactions. Without Taproot, anyone can detect transactions using that complex functionality, which requires creating multiple transactions. However, the Taproot upgrade will help "hide" all the moving parts of a Bitcoin transaction including these features. So even if a transaction applies that feature, they will be the same as a single transaction. This is considered a big win for Bitcoin privacy advocates. That make BTC special and unique, help BTC price go grow in three year next. Many expert believe it. And when BTC price increase Altcoin will have more benefit. Many financial institutions will be interested and invest in crypto world. So We can totally count on next spring of Crypto world. Thanks all .

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.

Electrical Engineer. Trading & Poultry.

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?

As per Taproot tech on Bitcoin lack of privacy and other related shortcomings, like long duration of confirming a block transaction, while Ethereum ERC 2.0 can process many transactions per second, will make Bitcoin and other well- valued & strong tech- backed altcoins sit-up to start improving on efficiency, effectiveness, wide-acceptability, convenience and flexibility without compromising security and transaction cost reduction without compromising quality & so on. It seems era of total and global full-adoption of Cryptos is here already while governments & Central banks & other financial institutions ( that are usually conservative/sceptical of drastic change) worldwide are now considering. adopting digital currencies, while these fully realized and functional coupled with era. advanced. technologies & ICTs we are in, will all making ease of doing business & means of payment seamless & more easier & faster, therefore Taproot & the likes, will continuously making greater impact economically & financially even beyond. 2022 and. forever till eternity. For the future of any crypto(s), especially, Bitcoin is quite not fully predictable to precision, but always was, is & will forever being guessed/guessing. Bye for now, until then,. Thanks in advance. Latnovator.

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