Decrypted: The Future of Cryptocurrencies
From AT&T accepting cryptocurrency payments to Facebook announcing the creation of its own coin, and the London Stock Exchange to Microsoft providing financial support to Blockchain and Crypto-based startups, there are numerous examples demonstrating that large corporations are investing in these virtual coins.
In the following, we will examine the underlying picture of Cryptoworld and decide whether fresh developing possibilities exist, as well as if cryptocurrency is a long-term trend or a passing fad.
But first, let’s take a short look at how far cryptocurrencies have progressed.
An Overview of the Crypto Market So Far The History of Cryptocurrency
Bitcoin, the first cryptocurrency, joined the market in 2009. Nobody understood anything about virtual money at the time, but the cryptocurrency sector exploded in 2013. One example is that the cryptomarket is dominated by Bitcoin. Today, there are over 1500 distinct cryptocurrencies on the market, many of which are performing quite well year after year. One of these is the Cardano cryptocurrency, which aims to provide a platform for dApp development.
But what comes next? What is the future of cryptocurrency, and should corporations create their own coins? Let’s find out in the following portion of the article.
Predictions for the Future of Cryptocurrencies
According to Worldwide Industry Reports, the cryptocurrency market is predicted to grow at a CAGR of 56.2% between 2017 and 2025, from $189.9 billion in 2017.
These figures are expected to rise as a result of the increasing use of cryptocurrency for transactions and other payment/wallet-related chores in countries such as France, South Korea, Finland, Germany, Spain, Japan, Sweden, Canada, Switzerland, and Mexico, to mention a few.
When it comes to the vertical impact of cryptocurrency, the retail industry is projected to see the most widespread adoption, particularly among major corporate chains.
Cryptocurrency market valuation will reach $80 trillion in the next 15 years, according to Tim Draper, a Venture Capital Investor.
Robert Kiyosaki, the best-selling author of “Rich Dad, Poor Dad,” stated that cryptocurrencies will soon replace US currency.
While the foregoing are forecasts that may or may not come true, let us look at what has been occurring in the Blockchain and Cryptocurrency markets.
Trends in Cryptocurrency
#1. Stablecoins Will Gain Popularity
Stablecoins, which were created in 2018 with the goal of representing the US dollar as a digital currency, are gaining traction this year.
Stablecoins are now preferred by businesses joining the crypto realm over Bitcoin and other cryptocurrencies. The most recent example is Facebook’s declaration that it intends to establish its own stablecoin for use within WhatsApp and other applications and tools.
#2. Security tokens will gain traction
Security tokens, which are often only available to authorised investors, are also predicted to grow in popularity. As we previously stated in our article based on top Blockchain technology developments, these tokens are expected to replace ICOs and give us better outcomes in the long term, provided institutional investors are more inclined to participate.
#3. Scams and hacks will continue to exist.
Because cryptocurrencies are still relatively new to consumers, the likelihood of individuals struggling to understand when and how to utilise them and falling victim to fraud is considerable. As a result, additional instances such as the Mt. Gox Hack are predicted to make headlines in the market.
While these hacks and scams will continue to exist in the market, other companies such as Coinbase will create initiatives to educate customers about cryptocurrency, allowing them to recognise and avoid falling victim to a fraud.
#4. Purchasing cryptocurrency privately will be a difficult undertaking.
Purchasing bitcoins will not be done under the table. The Know-Your-Customer (KYC) protocol, which has gained prominence in the market for adding security to cryptocurrencies, will be implemented as a fundamental need in all coins.
It would allow customers to purchase cryptocurrencies after revealing their personal information, including a copy of their passport or driver’s licence. It will also be added to the last holdouts of LocalBitcoins, person-to-person exchanges, Paxful, and others. This means that it would be more difficult for anyone to make a transaction in the Crypto realm without disclosing their personal information.
#5. The blockchain will become more transparent.
Companies will find it simpler to have a comprehensive image of the ecosystem, track bad practices, and maintain better money flow as more publicly available Blockchains and KYC standards gain traction in the marketplace. As a result, the Blockchain for Cryptocurrency world will be more transparent.
#6. Bitcoin will soar to unprecedented heights in the market.
This year, Bitcoin will maintain its top position in the cryptocurrency sector. This makes it practically hard for cryptocurrency exchange development companies to dismiss the concept of creating a clone of this coin worth $73 billion. The currency will be regarded as a standard, with new features offered first in Bitcoin and subsequently accepted by the other coins.
While this is true on the economic front, Bitcoin will also undergo major technological modifications. The Bitcoin team will focus on improving privacy features and making it easier to use the cryptocurrency on mobile devices.
Furthermore, the Lightning Network, which is meant to function on Bitcoin, will demonstrate fresh methods to use Bitcoin in everyday life.
#7. Ripple’s XRP Will Gain Popularity
Ripple will continue to focus on facilitating efficient cross-border transactions. It will continue to build a network of trustworthy exchanges from cities and countries in order to increase XRP acceptance. The platform has so far partnered with 12 well-known brands, including Mercury FX, and many more are expected to join.
Furthermore, the company hopes that the XRP currency will be accepted as an alternative way of payment in reputable institutions by the end of 2019, with its value exceeding $3.84 – something that will offer us with vital insights into how cryptocurrencies will affect the future.
#8. EOS Constitutional Amendment
EOS, the platform that generated $4.1 billion without going live, has struggled with decentralisation and the amount of block producers offering complete history nodes – both of which are required for dApps to function properly.
However, in order to do this, it will be necessary to cope with low voter turnout, which is a persistent difficulty for this cryptocurrency.
Now, either the experts will identify methods to lower the voting barrier or a greater awareness campaign will be launched to persuade people to vote. If they are successful in this move, EOS will be able to improve its efficiency and adapt to changing market conditions, resulting in long-term survival. On the other hand, it may consolidate at a higher level in order to continue evolving.
#9. Ethereum 2.0 will be released to the market.
In 2018, Ethereum remained a slow and steady platform. However, with the expanding number of Blockchain platforms tempting app developers with quicker transactions and better income, this platform will be upgraded this year.
Ethereum 2.0 is set to hit the market shortly, with Phase 0 expected to be released this year. [Read about Ethereum 2.0 in more here: Ethereum 2.0: The Roadmap to a More Scalable Experience]
#10. Private Transactions will be available for Litecoin.
Litecoin is another coin that will catch consumers’ attention while discussing whether cryptocurrency has a future. This year, the virtual coin will be pushed toward private transactions. However, unlike virtual currencies such as Monero, this will be an optional feature.
Furthermore, as shown by the Litecoin Foundation’s recent cooperation with the UFC, the year will see significant efforts placed towards currency promotion.
Aside from these, many Crypto-blockchain-based platforms, such as Decentraland, Grin, and Polymath, will enter the market and compete with current Cryptocurrencies and websites.
With all of these trends and benefits, numerous corporate areas are embracing the world of Blockchain and Cryptocurrency. So, let us conclude this post by looking at which industries are prepared to enter the Cryptomarket.
Industries that are preparing to decentralise in the near future
Government – Using the end-to-end blockchain voting technology, the government will drastically enhance voting and other procedures in order to promote confidence and transparency.
Music – Blockchain and cryptocurrency will increase transparency in the music industry, reduce the number of intermediaries in the process, and eliminate the possibility of re-distribution of music files without the agreement of the artists.
Various messaging apps, such as Telegram, will invest in the notion of establishing their own Blockchain-based systems for safe and effective file storage, payment, and censorship-free surfing.
Banking – While Blockchain and Cryptocurrency have already disrupted the Banking industry, Ripple’s currency XRP will join the market as an alternative to traditional payment channels.
Photography – Blockchain and cryptocurrency will also make it easier for photographers to avoid having their images exploited someplace. Or, to put it another way, they will find it easier to collect royalties for their work.
As we can see from this essay, the future of cryptocurrency and beyond is brighter than ever. Blockchain and cryptocurrency will take on many new shapes and business sectors.
In a year or two, they will reach new heights of commercial appeal. In such a case, investing in cryptocurrencies and Blockchain-based features will be the prudent course of action toward a prosperous future. So go for it!