Currency exchanges have always existed in human history: gold replaces barter as the currency for transactions, banknotes replace gold as a means of storing value, and cryptocurrencies are about to replace paper money. Each type of coin solves the problems of the previous generation of coins. Right now , cryptocurrencies offer a solution to the problem of unlimited money printing and counterfeiting . But what is the future of cryptocurrencies ?
Since the arrival of cryptocurrencies in 2009, many experts have identified them as a temporary phenomenon that will pass quickly. Years later, more than 6,000 different cryptocurrencies are known, starting with Bitcoin . With its success, cryptocurrencies have drawn many critics to their side, who initially rejected them . More and more companies are accepting payments with cryptocurrencies and there are even those that completely depend on this payment method.
The rapid growth of cryptocurrencies is what everyone points to as a Fintech trend in 2021 . With the entry of PayPal and Square, Bitcoin has reached a record high and the topic has risen again. Why are major companies getting into cryptocurrency one after another? It is said that there is a key to the reorganization and revitalization of the global economy that has been hit by the coronavirus . Therefore, we can affirm that cryptocurrencies will not disappear and their upward movement has not yet ended.
What factors affect the future of cryptocurrencies?
Although there are trends in the economic world that suggest our transition to a crypto-oriented economy, the traditional skepticism of people will serve as a major obstacle to overcome it. However, it must be clear that the entire crypto society has the potential to change the way people save and sell. Additionally, there are factors that influence decisively for cryptocurrencies to have a real future in the global economy :
- Users, volumes, transactions and the number of applications are continuously growing in the world of cryptocurrencies. This is demonstrated in the cryptocurrency market capitalization which has doubled in the last 12 months and volume has quintupled from $20 billion to $100 billion.
- The cryptocurrency market is being regulated and maturing , currently there are increasingly clear state rules for cryptocurrencies around the world. It can be said that cryptocurrencies are being accepted more and more frequently and clear sets of rules are gradually emerging.
- In the digital age, cryptocurrencies are the next logical step in the development of money , whether it’s mussels, salt or stone money, people need something that symbolizes lasting value and is suitable as a medium of exchange for businesses. Money is changing. And facing the digital age, cryptocurrencies are the next logical step in the evolution of money.
Where can cryptocurrencies be used?
At this point, most people still view crypto as an investment. But spending on cryptocurrencies could become popular as these currencies gain confidence. There are online retailers, which accept cryptocurrencies. And of course, two people who value the tokens can exchange them for goods or services. It is not the case that you can simply go to the store to pay with, for example, Bitcoin, but it is increasingly common to use cryptocurrencies as a means of payment.
Among other things, it has been the case that some travel agencies, airlines and some online stores allow payment with cryptocurrencies such as Bitcoin. This is a sign that we may see the use of cryptocurrencies frequently in the future. There are also more and more opportunities to trade cryptocurrencies like Bitcoin online. Nowadays, you can use crypto robots on Bitcoin Era Log in or crypto exchanges, if you want to trade this cryptocurrency.
Cryptocurrencies also make tuition payments, donations to charities, and payments for simple goods and services . This is part of the use of cryptocurrencies and they represent more than 50% of all transactions with them. There are many things that can be done with cryptocurrency, after all, one of the first Bitcoin transactions was to buy a pizza. The tradition of using cryptocurrencies for everyday things has been one of the reasons for the creation of Bitcoin and other cryptocurrencies .
Doubts about the operation of cryptocurrency in the future
Cryptocurrencies still face many challenges that need to be addressed. These include high power consumption, transaction speed (relatively low today), and cybersecurity risks . Experts have estimated that cryptocurrency mining today consumes as much energy as a medium-sized economy. In turn, it is no longer possible to recover these costs, much less generate income. Unfortunately, the price of cryptocurrencies cannot be predicted .
It is certain that the price will balance after the market transition, but no one can say if it will be higher than now or the opposite . However, the blockchain is the latest innovative technology that will continue to evolve and will not stop growing, especially considering the amount of money, resources and efforts that have already been invested. This means that we are on the threshold of a new technological age that is moving towards something new, different and unpredictable.
Additionally, your main ally can also be a point against you: the technology you use. It cannot be assumed that all users understand the technical basis of cryptocurrency block technology. This implies that these users do not have the same advantages as technology experts. And therefore, they have no choice but to believe what they say about the security and integrity of the system. This dependence on specialists who can benefit from the system can pose a risk of abuse in the use of cryptocurrencies.
Expectations for the future of cryptocurrencies
The growing interest of large companies may be one of the key factors leading to the development of cryptocurrencies. While cryptocurrency legislation is still in its infancy, significant steps have been taken in recent years. Block payment systems will gradually replace classical banking systems. There will also be different types of cryptocurrency projects (electronic exchanges, Internet of Things, etc.). Cryptocurrencies will stop being something fantastic and will also stop being associated with fraud and pyramids.
Will they become another tool for investment and support in the world of digital technologies? On the one hand, the expectation, and on the other, a doubt that affects the perception of cryptocurrency as a future means of payment. What is the future of cryptocurrencies? While we are talking about price prospects rather than technology, the question is rhetorical. It is also unclear how to calculate the true cost of cryptocurrencies, so the economic impact of the investment cannot be assessed.
For 10 years, cryptocurrencies have been on an incredible journey. It is very difficult to know what the future holds for us during the next 10 years. It is almost certain that they will prevail in the sectors where they are useful and provide real added value . When tasks are done cheaply, quickly, automatically, without the possibility of tampering and creating a system that cannot be attacked by hackers, then there is no reason for us to continue to use fallible technologies like the ones we use today.