To understand the future of cryptocurrency we must look at what cryptocurrency aims to accomplish. The ideas can sound ambitious or outlandish at first, but if you have been following crypto then you will know that each day they get closer to reaching their goals. Every coin has its own characteristics and objectives, so we will focus briefly on the most well-known cryptocurrency: Bitcoin.
What is Bitcoin?
Bitcoin was first introduced in 2009 and it seeks to become a globally accessible and decentralized digital currency. Decentralization of money means that it isn’t controlled by one government; it’s not even affected by any one country’s economic status. Bitcoin is not affected by inflation either and is why some experts see Bitcoin and other cryptocurrency as the money of the future. Bitcoin utilizes what is called Blockchain technology. This technology allows for an irreversible record of financial transactions and transparent ledger. Blockchain technology creates an environment where transactions are recorded and verified in a decentralized manner.
What is the Future of Cryptocurrency?
With the basic understanding of cryptocurrency out of the way, let’s get into what the future may hold. Governments are starting to notice how large the crypto world is growing and therefore many countries are working on cryptocurrency adoption. In fact, Vietnam’s Prime Minister recently approved a plan to create legislation recognizing Bitcoin as a currency. This is really big news for crypto as it is a big step towards worldwide acceptance of cryptocurrency. In a recent conference, a Russian bank signed an agreement with the Ethereum Foundation calling it the “New Oil of Russia”.
Major adoption like these two events can only lead to good things for cryptocurrency. Crypto being in the headlines of major news articles will bring in new investors, more money, and lead to more companies accepting crypto as payment. Once a company sees there is value in something, then they will work to get themselves involved. There are already some business that recognize cryptocurrency; some of the biggest ones are Newegg, Overstock, and Expedia. There are many more websites that will accept crypto as payment and in the future we can expect that list to grow much longer.
The main event that the crypto world is waiting on is for acceptance by the masses. In the future, we want to be able to walk into a grocery store, gas station, or restaurant and pay with our coin of choice. There are several projects that are starting up now that see this mass adoption barrier and seek to overcome it.
Projects such as Metal, TenX, and Monaco are working diligently to create a product that makes transactions using cryptocurrency seamless and simple. Cryptocurrency can be intimidating to those that are unfamiliar with it and the processes can seem complicated. However, once this process becomes simple to a complete beginner, then we will see a massive increase in cryptocurrency adoption worldwide.
One of the benefits of achieving mass adoption is that we attract the interest of major banks. These banks are in control of massive amounts of funds that would significantly increase the amount of money invested in cryptocurrency. This increase cash flow into cryptocurrency means that the value of coins will go up, widespread crypto adoption will spread, and credibility of cryptocurrency will be greatly strengthened. With a larger interest also comes more specific guidelines and regulations.
As the cryptocurrency space continues to grow it’s appearing on that radar of financial institutions world wide. Offices like the Securities and Exchange Commission in the U.S. and other country’s governments are starting to look closer at cryptocurrencies. Having organizations such as these investigating the crypto world could possibly lead to creating regulations that have specific governance over how citizens can utilize crypto. In a recent announcement, China has banned ICOs (Initial Coin Offerings).
An ICO is an event where companies will organize a project, create roadmaps & whitepapers, and allow people to invest in their product early. It is a risky, but sometimes very rewarding, way for investors to garner massive returns. There have been instances in the past where an ICO was conducted and the team behind it didn’t complete the project as planned, or had gotten hacked; this lead to complete loss of investor funds. Incidents such as these are ultimately what lead to China banning ICOs.
Although some believe that the ban is bad for the crypto world, it is actually a good thing. Banning of ICOs is the first step in creating a more structured crytpo ecosystem. An ecosystem where there are rules, guidelines, and punishments for breaking them. Regulation will likely lead to a healthy economic environment where scams are less likely and investors can feel confident in the project they’re backing.
The Final Say
The future looks bright for cryptocurrency and its investors. Crypto is gaining the attention of important entities around the world which will lead to more money coming in and regulations that help create a healthy environment for all involved.