transaction: Bitcoin Taproot potential impact and price predictions

transaction: 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 avatarTobi Micheal Olaitan

Manager / Crypto Passionate

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?

I really can't estimate to what extent Tap Root will affect the price of BTC but I am very certain it will benefit all and bring more DEX into embracing and offering BTC trading pairs. Majorly, most DEX traders including me are pissed off with BTC transaction fees and the transaction time frame it takes. Therefore, if Tap Root is fully implemented, more trade pairs and other platforms such as games and financial apps will emerge and thereby make BTC to be sought for the more and definitely spike the price. It will enhance the speed in e-transactions for country like El-Salvador which has made it a legal tender. It is welcome idea.

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 avatarHenry Bill

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 .

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 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 avatarFatai-Ayoade Lateef Adekunle

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.

article avatarElisée Yao

cryptopreneur

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?

Bitcoin Taproot is a special fork that will reform Bitcoin script and enhance privacy.Taproot builds on the SegWit upgrade to improve Bitcoin's lower transaction fees which is the best thing for a wider for bitcoin audience. It will spread good news in crypo community which will ban discrimination among poor and rich investors.Lower transactions will open the door to all classes of cryptosociety.Bitcoin wont be reserved to elites alone and that will boost its prices alot because of the demand which is actually limited.Thanks

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

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