What is the future of cryptocurrencies?
Within the past decade, more than 1000 cryptocurrencies started to emerge and some of them managed to stir world economics and how we send money online. But for many people, the inception of cryptocurrencies was only the beginning. So you have to wonder, what’s the future of cryptocurrencies and what can we expect from them in 10 years or more?
Cryptocurrencies will eventually overcome fiat currencies
At this time, we are still heavily invested in the idea of using paper money. But as time goes by, cryptocurrencies will soon take over the world and eventually we will only use cryptocurrency to pay for utilities, purchase items and send money to other people. Virtual money is less prone to faking, and the blockchain transfers are becoming more and more secure.
There will still be cryptocurrency volatility
While some cryptocurrencies will eventually stabilize, many of them will still remain volatile. It will still be a gamble to invest in just about any currency. Just like now, proper documentation and study are needed to ensure that you’re investing in the right currencies.
We will have more corporate-backed cryptocurrencies
Facebook already established its own cryptocurrency Libra, and we can expect many large companies to have their own cryptocurrency. Whether that will be a stablecoin or a more volatile currency, that’s hard to say. But it’s safe to assume that more and more currencies are on the way and corporations will soon jump on the cryptocurrency train too.
We already have a plethora of ICOs on the market right now. But we can expect more, and that’s because this is a very good fundraising method for startups. Companies with something new to say on the market are using the ICO approach to obtain funds, and many of them were successful. While opening an ICO doesn’t guarantee success, it certainly becomes a great starting point.
There will still be heavy governmental regulation
One of the main reasons why cryptocurrencies didn’t take off more is mostly due to governmental pushback. In fact, many cryptocurrencies are dealing with a lack of exposure because the governments are constantly pushing against the use of crypto and they promote fiat money. We expect cryptocurrencies to deal with fewer regulations in a decade or so, but for now, this trend will continue in the 2020s.
Is it safe to invest in cryptocurrencies now hoping for a big payday? It’s very hard to say because regulations are constantly changing and what’s valid today might not be valid tomorrow. Some cryptocurrencies like Bitcoin and Ethereum or Litecoin will continue to be very popular, but we can expect new ones to emerge in the next few years. It’s safe to say that the crypto world will be expanding and eventually we will have a paperless society. But how fast we get there all comes down to other things like governmental regulations, mitigations and other challenges. Still, the possibilities are endless, and we are very curious about what the future holds in the cryptocurrency world!
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