Is the future of cryptocurrency bright or dull?

by | Jul 6, 2022 | Market, Market News, News | 0 comments

Cryptocurrency has been dubbed the ‘future of money. By now, you are already familiar with what cryptocurrency is and why you should invest in it. Despite that, quite a lot of us still doubt the merits of investing in cryptocurrency because of what the future has on hold for the cryptocurrency market. Here are some predictions for the future of cryptocurrency.

  • Government regulations: One of the highest selling points of cryptocurrency is its decentralized way of trading.  There is no third party involved. Neither governments nor federal agencies can interfere with your transactions. This makes it a breeding ground for cybercriminals. Despite the blockchain method of securing, independence from authorities gives these criminals autonomy to operate as they please and commit heinous crimes, usually theft. The government is might try to develop ways in which they can tap into these transactions. They are also likely to establish regulations and guidelines to make it a safer place for investors and to make it undesirable for cybercriminals. It may reduce the levels of cybercrime but, by doing so, they will also be taking away one of the most appreciated features of cryptocurrency. Adding increased security is a point of conflict for many users. Many times, secret transactions are used for illegal transactions but there are a lot of legal transactions that people want to keep hidden for reasons of their own. While increased security can bring in more users, it might potentially also decrease the amount of already existing users. It’s quite appropriate to say that the government’s actions regarding this might shape the future of cryptocurrency.
  • Institutional investments: Crypto currency’s rise has it made very appealing to a large number of investors. Quite a few data statistics also prove that the crypto market will only confer its investors with stupendous returns. Consequentially, a lot of institutions have taken interest in the cryptocurrency market. It’s the gift that keeps giving. Although its rise is an assured factor, nothing comes without risks. This is also something that captivates its investors. Another element of the crypto trade that is quite captivating to investors is that it provides no cap on the daily fund transfer. This enables users to make transactions without worrying about how much they are transferring. This is something that the regular banks don’t provide.
  • Mainstream way of transactions: Although quite popular, cryptocurrency is not favored enough to be the mainstream way of carrying out transactions. The near future predictions assume that, with its current standing in the market, cryptocurrency has the potential to become a mainstream way of conducting transactions. Many high-ranking institutions have also started to accept cryptocurrency as a valid method of payment. This will enable the popularization of cryptocurrency, and make it a regular way of handling transactions. The trade and market value of cryptocurrency then will only grow. However, this can only be possible when its users have a sense of security while using, and this might require a non-decentralized way of transactions, which can take away one of crypto currency’s strongest attributes, thus also decreasing the number of existing users. To make cryptocurrency mainstream, developing a quid pro quo scheme seems like the most viable option.

Currently, the cryptocurrency market is worth billions. With time, it is only predicted to rise. The future of cryptocurrency is surely bright, and it also seems like a smart trade to invest in. These predictions made by statisticians are most likely to be true but no one knows what the future holds!