Bitcoin has certainly accomplished a lot in the past decade. From being worth zero cents, the premier cryptocurrency has grown exponentially in value (it was worth $63,000 in April 2021). This is true for some other cryptocurrencies too. Ethereum and Litecoin, for example, have also appreciated in value. Although they do not hold a candle to Bitcoin, they are being used for many other things, such as in NFTs and the Metaverse.
That’s just a view of the past and present; what does the future of cryptocurrency look like? This is a question you must ask if you are investing in cryptocurrencies. After all, the future landscape will determine whether you gain or lose. In this article, we will analyze some expert predictions and insights on what the future holds for cryptocurrency. So, fasten your seatbelts!
What Does the Future of Crypto Look Like?
Cryptocurrency, as we know it, can end up between two extremes in the future. The first is that crypto becomes universally accepted and overtakes traditional investments and financial systems. The other extreme is that cryptocurrency fails and becomes a thing of the past. So, in which direction do experts think crypto is headed? Let’s find out!
Bitstamp, a major crypto exchange, carried out a survey of investors from different countries to get an idea of what crypto investors think about the future. The survey included 28,000 investors from 23 countries spanning Africa, America, Asia-Pacific, Europe, Latin America, and the Middle East.
The findings of the survey are as follows:
- 88% of institutional investors believe that cryptocurrencies will witness mainstream acceptance within the next ten years.
- 75% of retail investors also believe that cryptocurrencies will become generally accepted within a decade.
- Another 80% of institutional respondents reported that cryptos will overtake and replace the current financial structures.
There is a reason for us to trust the results of this survey; the respondents are seasoned investors, and some are institutional investors who are part of investing groups. Most reported that the future of cryptocurrencies is bright. That’s one perspective, however; let’s view the future of cryptos from another angle.
The inventor(s) of Bitcoin, Satoshi Nakamoto, proposed in the Bitcoin whitepaper that Bitcoin was intended to be a “borderless and decentralized alternative to government- and central-bank-controlled fiat currencies”. Instead of relying on third-party regulators to mediate transactions, digital currency relies on blockchain technology.
However, after a decade and four years, the original intention of Bitcoin still needs to be actualized. The decentralization of Bitcoin has given way to centralization: Bitcoin whales hold massive amounts of digital assets, and mining farms primarily carry out the mining process. Bitcoin’s underlying technology also has scalability issues, which has resulted in the formation of forks and altcoins.
However, these negative aspects are offset by a fast-growing and thriving crypto ecosystem. There are now more than 20,000 cryptocurrencies on crypto exchanges worldwide and the crypto market is currently worth $937.5 billion.
Many key organizations and investors have shown a growing interest in Bitcoin and other cryptocurrencies; this points towards a future where crypto is generally accepted around the world. Large banks like Goldman Sachs and BNY Mellon are reoffering some of their crypto services to accommodate the growing number of crypto users. Citi also said that Bitcoin might become the accepted currency for international trade in the future. PayPal, an international financial services provider, and Tesla, an electric car manufacturer, both invested in cryptocurrency. PayPal also allows its users to make crypto transactions, while Tesla plans to accept Bitcoin as a means of transaction.
The future of crypto is uncertain, but as emphasized above, many experts have an optimistic view of crypto’s future. To become the universal financial solution that crypto is expected to become, it will have to lean slightly away from its initial goals. To become a mainstream solution, crypto has to satisfy the general public and not just a small group of enthusiasts.
Anyway, the future looks bright for cryptocurrency, and everyone in the crypto universe has to contribute to improving crypto for the future.