Well, here we are, in the era of yet another possible, next best thing! Twenty-five years ago, it was the internet which, for many, were skeptical and confused about the new technology and swore it off before it ever left the ground. Now, twenty-five years later, we can not live without this day-to-day necessity. Many wondered what the future of the internet was or if there would ever be one. And with cryptocurrency now on the rise, many confused skeptics of the new technology are asking the same thing. So, what is the future of cryptocurrency?
Unfortunately, not many things in life come without some level of risk involved, and investing in cryptocurrency is no different. However, if invested wisely, as with stocks and with trusted companies, cryptocurrency investments could yield tremendous gains if you are willing to invest long-term.
It is also essential to understand that because cryptocurrency is not controlled by any banks, governments, or third parties but instead by its own technology, more commonly known as the blockchain, this new form of currency could be banned at any time. Hence, you will lose any investments you have made.
Unfortunately, this is a considerable risk factor that comes with cryptocurrency simply because the government and other powerful entities do not like what they cannot control. On the bright side, however, based on how far cryptocurrency has come and how many companies like Tesla are now accepting it as a form of payment. It is safe to say that the future of cryptocurrency and the blockchain has made a place for itself globally for a long time to come.
If it were not for Bitcoin, which is known as the digital gold of the crypto world and its runner-up, Ethereum, there would probably be no discussion about the future of cryptocurrency. However, before we go any further, let us break down what cryptocurrency is.
Cryptocurrency is simply a digital asset that works as a medium of exchange, whereas the US dollar is a physical asset that also works as a medium of exchange. Instead of being stored in banks or controlled by the government, cryptocurrency is instead stored in a ledger in the form of a computerized database that uses robust cryptography to secure transactions and individual coin ownership. This intricate system also verifies the transfer of coin ownership and controls the creation of additional coins, also known as altcoins.
Because of the simplicity that crypto provides, minus the worry of the middleman, i.e., the banks and government, the future of cryptocurrency and its groundbreaking technology have gotten the attention of many companies like Visa, PayPal, Tesla, and even some banks. Moreover, because of what this self-regulating technology allows us to create, the future of cryptocurrency and its value will only increase as real-world use picks up, just like the internet did. Furthermore, to ensure your fate with crypto, invest in notable currencies with real-world use, and your investments will increase over time as well.
Ethereum, the world's second-largest cryptocurrency next to Bitcoin, is being used so much in several blockchain areas. If cryptocurrencies were banned as a currency, many believe that Ethereum would still exist while holding its value! Talk about the future of cryptocurrency!
NFT's or non-fungible tokens are enormous technologies that are currently built on top of Ethereum. They are digital assets that represent unique and real-world digital items such as music or art. Although NFT's are generally created and stored on a blockchain like crypto, NFT's are non-fungible, meaning, unlike cryptocurrency, NFT's cannot be traded or exchanged for one another. They can, however, be bought and sold online.
Before NFT's, which has been around since 2014, Ethereum was widely used over the blockchain, and several other tokens are based on this amazing digital asset. These secondary tokens are called ERC20. Due to the complexity of Ethereum, the future of cryptocurrency and especially this cryptocurrency is the skies the limit!
Fortunately for the future of cryptocurrency, many reputable institutions have adopted and promoted the concept of crypto. They do not see this new technology as a threat. Instead, these stable and well-known institutions see this new technology to expand their businesses and help small business owners do the same.
Visa, as mentioned earlier, is doing everything possible to accept Bitcoin and other currencies, just like Tesla, who, currently accepts Bitcoin as a form of payment for their futuristic vehicles. Fidelity Investments launched a one-of-a-kind Bitcoin fund for a wealthy investor with a minimum investment of $100,000. The purpose of the fund is to track the performance of Bitcoin per Fidelity's Bitcoin index. The company created this index to track the price of digital currency.
JP Morgan, a global leader in financial services, created a crypto business unit with one hundred of its staffers. Based on the companies' analysts, it was suggested that crypto was an excellent alternative investment to gold. Analysts also suggested that the value could triple based on the current trends of the popular asset. This prediction is an excellent outlook for the future of cryptocurrency!
PayPal has gone even further and recently announced that users would be allowed to buy and sell in Bitcoin or Ethereum and other digital currencies, which will only strengthen the future of cryptocurrency. Along with these powerhouse institutions, more are following their leads and are beginning to adopt, support, and stockpile millions of dollars worth of Bitcoin. This support will aid in gradually stabilizing the currency and the future of cryptocurrency as a whole.
Let us be honest, global digital currency simply makes sense, especially if we call ourselves living in a global society. The world is changing and the way we buy, sell, and trade should change as well. Having the transfer of funds held up for days while the middleman keeps track of an internal ledger should become a thing of the past. Having your funds frozen for any reason a bank decides should no longer be tolerated.
The future of cryptocurrency has arrived, and with little effort, a cryptocurrency transaction can be settled in minutes, not days, no matter where you are in the world. With crypto, your funds are stored on a digital ledger, not in a bank where someone else controls your assets. The computers, not the middleman, are tracking everything for you, and this sophisticated network is nearly impenetrable, but that does not mean it does not come with some drawbacks.
One drawback is that these effortless and quick transactions may come with high transaction fees, but as time has shown, they will continue to come down drastically over time. Also, another drawback of having an online wallet is that they are vulnerable to online hackers. However, what isn't that is connected to the internet? Just like transaction fees will become better over time, so will the security as more money is invested in this digital world.
Today, we live in a world built around technologies that have made our lives easier. When it comes to the future of cryptocurrency, nothing is guaranteed but based on how this new technology has progressed over time; it may be safe to assume that it is here to stay for the long run. Bitcoin and several other currencies, however, are incredibly volatile right now. Fortunately, with so many reputable companies on board that has invested in Bitcoin, this will help tremendously slow down that volatility. With continuous investments and patience, the future of cryptocurrency will prove to be as impactful to the world as the internet has been.