Bitcoin news on the internet gives a glimpse of its steady rise in popularity. More and more cryptocurrency enthusiasts are using their virtual assets in money management as either a medium of exchange or tool for investment.
Today, the cryptocurrency market is worth billions of dollars, prompting many people to ask: What’s next for Bitcoin and other digital currencies moving forward into 2021 and beyond?
The Future of Cryptocurrencies
Cryptocurrencies have been revolutionizing the fintech space since Bitcoin debuted in 2009. More than a decade after, cryptocurrency still offers innovative solutions as an alternative to traditional financial systems. Here are some of the outlook of experts towards cryptocurrencies in the upcoming years:
- Cryptocurrency regulations will be in place
Cryptocurrencies are based on decentralized and autonomous systems. All transactions and verifications are enabled by blockchain networks, with no interference from central banks across nations.
Although this decentralized nature is what attracts supporters to cryptocurrencies, regulations may become tighter as the number of countries accepting digital coins continues to increase. There will be steps taken to make cryptocurrencies legal in the financial world.
- Governments may adopt the blockchain technology
Most government agencies have separate databases, which can make it somewhat difficult and tedious to store and manage data of all forms—from social security to cash flows—with complete security.
Blockchain technology can offer a viable workaround for this stumbling block in the IT infrastructure since blockchain networks utilize a distributed ledger that can reduce the back-and-forth exchange of data. Advanced encryption techniques add a layer of protection.
Blockchain also helps prevent fraudulent activities through smart contracts. Since contracts are built on codes within the blockchain, anonymous contracts can be enabled, so there’s no way that certain bidders will be favored over other contractors.
- Crypto trading will grow even more
Trading activities will be bustling in cryptocurrency exchanges. Current top players like Bitcoin, Ethereum, Tether, and XRP will continue to rise in prices.
However, the market will be so huge that new cryptocurrencies will probably be emerging, adding to the long list of now more than a thousand digital currencies listed in exchanges. The launch of new coins will definitely give trading enthusiasts a lot more options as to which of their assets they would like to trade.
- Cryptocurrency applications will be available in various industries
Some of the most common uses for crypto include payment for purchases, investment, and salary for employees. However, it won’t take long for key industries to start adopting cryptocurrency, too, by shifting to decentralized apps (dApps), or apps that allow them to connect directly with users.
For example, charitable organizations may develop a platform where donors can track how the funding they provided was used for greater transparency.
- People will have access to a financial management system using cryptocurrencies
Billions of people across the world remain unbanked up to this day. Several factors account for this situation, but one of the reasons is the lack of necessary documents that are required by banks when opening an account with them.
Thanks to cryptocurrency, the unbanked populations all over the world may soon have access to financial services like crypto accounts, debit cards, or loans that are far less complicated than traditional banking.
Truth be told, the outlook for Bitcoin and other digital currencies as well as stock trading
isn’t as definitive as its supporters would want. Although there’s a lot of potential for crypto, there’s still the question as to whether it’s a fad that will pass sooner or later or a game-changer that may eventually replace conventional currencies.
You can only look at existing applications on mobile phones where cryptocurrency is being used to know that bigger and better things can happen in the future.