In less than ten years period, cryptocurrency has gained a reputation in the finance domain. Apparently, out of nowhere, this currency managed to grab everyone’s attention and veneration. It made the jump from being a theoretical concept to (simulated) reality with the making of Bitcoin in 2009.
It registered a gain of 3000% in 2017 come next buoyancy in 2018. Blockchain technology not only brought innovation but gave popularity to Cryptocurrency too. Adopting cryptocurrency and the elementary blockchain has its own challenges, which can be overcome by putting to use the right blockchain application development services.
Hence, in the long-term cryptocurrency will have a more predictable path. Although cryptocurrency had its share of failures regardless of that, it is still whispered that cryptocurrency has an optimistic future.
For instance, in an interview, the CEO of CoinMetro, Kevin Murcko, strongly stated that “cryptocurrencies are still evolving and there is more that we’ll see in the cryptocurrency span”. He also added that both cryptocurrency and Blockchain are ‘work in progress’.
The Wheels of Fortune
Some of the challenges of cryptocurrencies that are faced today like hack threats, loss of information with device crash etc., can be exhausted in the coming future. What will be tougher to overcome is the basic irony that torments cryptocurrency – the more popular it becomes, the more regulations and (government) examination are likely to be imposed.
Although the number of businesses accepting cryptocurrency has increased, still they are not in a majority. For cryptocurrency to gain the anticipated popularity, they must foremost gain the acceptance among the businesses and customers.
What do you think will be the future of cryptocurrency? What is your intelligent guess? Well, let us look at the following trends that can give us the idea of what we can expect in the future.
Cryptocurrency will receive more benefaction from the established investors
Looking at the fact that on and on governments are looking at regulations, investors are feeling secure and comfortable in investing their funds into the cryptocurrency. With improved regulations, investors will have a sigh of relief and have no concern about the ambiguity of cryptocurrency.
As a matter of fact, more investors are looking at this cryptocurrency as a feasible asset because of their handsome returns. In 2017 December, it hit a high record of almost $20,000 for one tcoin. McAfee has predicted that bitcoin is expected to cross $1 million by the end of 2020:
However, this rise will be gradual and not sudden, hence some investors are watching the developments in cryptocurrency very closely. With improved regulations more and more big investors are likely to get attracted.
Why are the governments regulating the cryptocurrency?
For a long time, traders have been feeling the pinch of security. A study conducted by Encrybit had revealed that 40% of the audience feared security as a major fear. A lot of times, hackers and cybercriminals take benefit of the time off, of regulations, making trading in cryptocurrency difficult for investors.
In the premises, efforts to are in progress to regulate cryptocurrency globally. Like, at the G20 summit meeting held in Argentina, directives were taken for making global regulations.
Cryptocurrency won’t stop being unpredictable
Irrespective of the measures to ascertain the steadiness in the market of cryptocurrency, it is still struggling to reduce or stop the unpredictability of cryptocurrency. These include:
• Lack of congenital value
• Lack of organizational capital
• Implementation of regulations
Even though the regulations and its effect will help to reduce the unpredictability but only that won’t be sufficient to make the difference. But as the cryptocurrency trading becomes more and more popular, we will see a rise and fall in the unpredictability. Some people will benefit from this sudden rise while some may benefit from the fall.
Cryptocurrency may replace federal currencies
Cryptocurrency has a great potential to curl and whispers are already being heard that it can replace the federal currencies in the time to come. Cryptocurrency is very effectual the way it works. Google’s Thomas Frey projected that by 2030, cryptocurrency can be used as a monetary system. He added that cryptocurrency will replace 25% of the federal currencies by 2030.
The CEO and chairman of Global Futures, Dr. James Canton said that the increase in the popularity of cryptocurrency represents the legalization of new asset class evolving combined with the conventional global economy.
The advent of cryptocurrency has flickered a discussion about its future and that of Bitcoin. Despite of the ups and downs, its success since 2009 has inspired the launch and creation of other cryptocurrencies as well like Ripple, Litecoin etc. With its potential and the secure implementation of Blockchain, cryptocurrency is set to make a hit in the world in the coming years.
To become a part of the conventional financial system, a cryptocurrency will have to satisfy very diverse standards. The challenges faced by cryptocurrency today will determine the wealth of cryptocurrency in the future.