Like many aspects of our modern society, cryptocurrency is a work in progress. Several short years ago most people had never even heard the term. Today Bitcoin and other cryptocurrencies are widely known, but many people still have trouble understanding the technology.
The future of cryptocurrency is even more difficult to pin down. In recent years experts have had difficulty predicting more immediate issues, such as economic trajectories and election results.
Cryptocurrency is the intersection of technology, finance, government, commerce, practicality and evolution. No wonder it’s so hard to forecast.
What follows are some thoughts about the future of cryptocurrency. While there may be more questions than answers, we can at least offer some expectations.
Practical Uses of Cryptocurrency in the Future
Cryptocurrency as a means of transaction will continue to evolve. In a relatively short period of human history, our economic system has already progressed from trade and bartering to cash, credit and banking. One day cryptocurrency may well seem as ubiquitous and obvious as credit cards or bank loans do today.
The number of merchants that accept cryptocurrencies will continue to grow. Smart cities will emerge where cryptocurrency and associated technologies will be used to accomplish everyday things, such as making purchases, banking or accessing government services.
Greater numbers of cryptocurrencies will continue to emerge. Many will find small niches, and some will be used to conduct trade in specific industries or geographical areas. One segment that will remain at the forefront will be the gaming industry. Gamers are early adopters, and comfortable with the technology. Expect crypto-based finance and lending to grow as well, including in the business-to-business sector.
The widespread use of cryptocurrencies on a day-to-day basis will take time to arrive, but is considered by many to be an inevitability. Like most major technological or societal disruptions, it will move forward, inch by inch, until one day reaching a critical mass. Then, much like the internet itself, we will one day wake up and realize that it is everywhere.
As we’ve discussed in a previous blog post, blockchain technology (https://jvdriver.com/crypto/uncategorized/applications-of-blockchain-technology-not-just-bitcoin/) has utilities that extend into many aspects of modern life. As this technology is perfected, more and more ideas will spring forward for using it. Finance, AI and energy will all be affected. The rise of blockchain technology and that of cryptocurrency will continue to be intertwined.
Cryptocurrency as an Investment
The early history of cryptocurrency could be likened to a roller coaster. Certainly not everybody has the stomach for that. Although the current global valuation has gone down since the high of January 2018, it has shown signs of stabilization. To paraphrase Mark Twain, reports of its death have been greatly exaggerated.
In truth, individual cryptocurrencies are a highly speculative investment. In this way they are similar to individual websites during the initial rise of the internet. But just as the internet itself was too useful to go away, the idea of cryptocurrency may also be unstoppable.
Several questions remain about how exactly this will look, but it will likely bring added legitimacy to the idea of cryptocurrency.
It is expected that additional institutional money will continue to pour into cryptocurrency. (https://jvdriver.com/crypto/uncategorized/the-converging-of-wall-street-cryptocurrency/) When Wall Street’s current bull run inevitably comes to an end, this process could speed up.
Cryptocurrency and Government Regulation
Part of the reason for cryptocurrency’s existence is to provide an alternative to centralized monetary structures. As the phenomenon becomes more widespread, however, it attracts an increasing level of government scrutiny. Adam Barone of Investopedia summarizes the paradox:
“The more popular they become, the more regulation and government scrutiny they are likely to attract, which erodes the fundamental premise for their existence.”
Regulation will always lag behind technological advancement, and the simple truth is that many lawmakers just don’t understand all of the implications of cryptocurrency and blockchain technology.
As cryptocurrency becomes more widespread, expect governments to become increasingly interested in managing it, and harvesting tax dollars. Which countries will react most swiftly, and become most involved will depend on political and economic realities, as well as other factors. Therefore, predicting this with accuracy is next to impossible. What is certain, however, is that crypto’s expected continued rise will not go unnoticed by lawmakers.
As you can see, the future of cryptocurrency is not yet written. Whatever the details, it seems very likely that cryptocurrency itself is here to stay. One great way to get involved, and capitalize on cryptocurrency is through mining it for profit. Everything you need to get started is available from JV Driver, so visit jvdriver.com/crypto and learn more about our customizable and easy to use crypto mining units today!