Cryptocurrency came on fast and furious and surprised financial experts, governments, and users alike with massive fluctuations and outstanding climbs to great heights, as witnessed with Bitcoin. While it has been an exciting up-and-down beginning for cryptos, now that the dust from the first decade of cryptocurrency is settling, what can you expect next?
1. Increasing Regulation
The biggest changes immediately ahead for cryptos lie in the domain of regulation. Governments and regulatory bodies struggled to keep up with issues arising out of the fast-paced cryptocurrency market, but they are now getting a better handle on these issues and you can expect to see increased regulatory oversight. While some of these regulations will make the use of cryptos more cumbersome and difficult, the upside is greater security and a reduction in such problems as market manipulation and insider trading. Finance experts are predicting that increased regulation will lead to steady growth of cryptocurrencies rather than causing them to diminish. Whether the volatility of crypto can be managed by regulation remains an open question moving into the future. Many crypto executives are onguard about hasty and ill-formed policy and regulations that may threaten their currencies.
2. Increasing Usage in B2B Transactions
One area of rapid growth and continued adaptation of cryptocurrency will most likely be B2B marketing transactions. Cryptocurrency makes it possible to transfer B2B payments globally with relative ease and security. Fraud is a concern for some B2B transactions and the use of cryptocurrency for payment can cut out a lot of the opportunities for fraud to occur. Using cryptocurrency B2B also allows greater customer privacy, and, while this may change somewhat in the future, currently cuts interference from banks and governments out of the transaction. It is sane to expect an increase in cryptocurrency usage B2B as more marketers catch on to the benefits.
3. Integrating Cryptos and Banking
While some crypto proponents predict fiat money will fall away and be completely replaced by digital assets, most financial experts seem to generally agree that the presence of cryptos will influence banking and financial institutions but not to the extent that non-digital currency will go away. If banks warm up to the idea of allowing cryptocurrency accounts, people may begin to use cryptocurrency debit cards and possibly even obtain loans in cryptocurrency. These changes will likely be slow to integrate into banking institutions and will only follow greater regulation and the stabilization of cryptos. However, much like the need for businesses to build online presence as the internet became a thing, banks that fail to integrate cryptos sufficiently and in a timely manner may face similar challenges to businesses that did not make the leap online in time.
4. Emerging New Cryptocurrencies
The nature of cryptocurrency seems driven by adaptation and innovation. New cryptocurrencies can be expected to continue emerging, not necessarily replacing any of the existing ones but definitely meeting new demands and addressing problems creatively. Cryptocurrency is not expected to go away anytime in the near future. While some may virtually fall out of usage, it is most likely that new cryptocurrencies will continue to emerge and challenge the market in new and unexpected ways. In 2020 alone, almost 3500 new cryptocurrencies emerged. While this number may slow down some in years to come, growth of new cryptos is not expected to halt anytime soon.
5. Continuing Ups and Downs
Big drops in cryptocurrency values may alarm users and investors, but should be expected in the years to come, even with increased measures to attempt to stabilize the digital coin market. Along with the dips, new heights should be equally seen, with the market for some of the bigger coins like Ethereum and Bitcoin to continue an upward climb in value. While these may drop dramatically from time to time on the way up, the overall trend is towards increased value of these currencies.
Cryptocurrencies continue to baffle many who have an eye on the market, but even amid dramatic value fluctuations and rapid rollout of new currencies, it is possible to identify some steady trends that can help you engage with the crypto rollercoaster successfully.
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