Bitcoin Price Prediction Forbes Advisor Australia – Forbes

However, every investment has potential downsides, and Bitcoin is no exception. Sciberras says on the negative side of the ledger, there are concerns over Bitcoins long-term security, given the block reward will continue to decrease.

Additionally, short-term sell pressure could also negatively impact Bitcoins price.

Then there is the contentious debate about inscriptions on the Bitcoin blockchain. While Sciberras acknowledges their potential in generating sustainable fees for the protocol in the long-term, especially as more Bitcoins circulate and miner reliance on fees increases, he also notes the divided opinions within the community regarding their impact on the networks functionality.

Notably, a respected original Bitcoin developer, Luke Dashjr, labels inscriptions as spam. He argues that they congest the network, complicating the mining process and the networks overall support. This difference in perspective sets the stage for a potential ideological clash within the Bitcoin community.

Environmental and political fall-outs are another concern.

There are continued attacks on Bitcoins environmental impacts, with the White House proposing a tax of up to 30% on Bitcoin miners in the US, Sciberras says.

Similarly, if Bitcoin continues to be criticised due to its energy consumption, it could threaten its price action.

The worst-case scenario is we see Europe try to reintroduce a ban on (proof of work), which was tried in 2022 but was swiftly struck down.

Sciberras adds that the spot Bitcoin ETF applications also pose a potential risk if they are rejected, creating a short-term sell-off of BTC.

A swing in sentiment against Bitcoin and cryptocurrency by governments could also decrease prices.

The US is becoming incredibly hostile towards cryptocurrency and Bitcoin, Sciberras says.

Additionally, if Bitcoin threatens countries monopoly on money due to widespread adoption, governments could move to restrict it.

Sciberras points to a recent bill introduced in the US to expand the Bank Secrecy Act and impose more stringent reporting requirements for digital currency transactions, including those with unhosted wallets, as an area for concern.

In its current form, this legislation would cripple the US crypto industry, he says.

The implications of anti-money laundering (AML) and Know Your Customer (KYC) laws also worry investors. Sciberras singles out the specific challenges of enforcing high reporting requirements on transfers to private, self-hosted wallets.

AML laws remain a big battleground and could threaten the industry as compliance could be extremely difficult, Sciberras says.

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Bitcoin Price Prediction Forbes Advisor Australia - Forbes