When you talk about Bitcoins, you will find either passionate advocates of the cryptocurrency or skeptical cynics, who denounce it. There are hardly any fence sitters. There is currently a debate going on about the future of the digital currency, about its pros and cons. It is really democratizing the global fiscal structure?

One of the topics under discussion is its long term viability, in the light of the recent collapse of the largest Bitcoin trading platform in the world, Mt. Gox and hacking into Bitcoin wallets. Here we will try to give our analyzes of where the currency is heading in the next five years.

Where do we see Bitcoin standing five years in the future?

Reid Hoffman is the co-founder of LinkedIn and an early investor in Facebook. In a recent interview, when he was asked about his investment preferences over a five year period, he said that he was interested in Bitcoins. He said that Bitcoins were an incredible innovation and the cryptocurrency had created a distributed ledger for the whole world. He added that Bitcoins could be money but they could also be many other things. He is now on the board of directors of Bitcoin wallet startup, Xapo.

The cryptocurrency has shown resilience. The recent bust of Mt. Gox was a setback but Bitcoin managed to come out largely intact. The traffic has shifted to other Bitcoin exchanges and all seems to be well. It is a positive sign and augers well for the currency’s future.

Regulations and controls will increase

In the coming years, regulations on Bitcoins will increase which is good for the digital currency in the long run. Many of these regulations are already in effect like KYC requirements, license for money transmission and more.

Acceptability with businesses will improve

More businesses will get on the Bitcoin bandwagon, leading to an increase in its value and the number of users. On the value front, many Bitcoin experts have predicted that the cryptocurrency will touch $2500 to $5000 in the next five years – even $50,000.

Bitcoin trading and mining platforms also enjoy a healthy growth in transaction numbers and member counts. CEX.io, for example, has more than 280,000 traders, and counting – covering a good 20 percent of the market.

Payout will be reduced

By 2017, the payout from one successful mining operation will come down to 12.5 coins, from the current level of 25 coins. After that it will continue to halve every four years, until the final Bitcoin is mined in 2140.

Ultimately, the success of the Bitcoin platform will depend on how it is able to influence commerce in goods and services but one thing is sure; Bitcoins will survive.