Many people still don’t believe in the future of crypto
Cryptocurrency became a big name in the modern financial system in less than 10 years. The cryptosystem is still not perfect, however, it is hard to deny that it has already become a significant phenomenon. It affects many aspects of the public’s lives and fields of activity.
Let’s not forget that digital currency has had its setbacks. That’s why there are many people who still don’t believe in the future of crypto, and they have justified reasons for it. Nevertheless, a lot of people, against all the odds, believe in crypto and its bright future.
The cryptocurrency industry, as well as the blockchain one, still needs refinements and improvements. Nonetheless, blockchain proved itself to be reliable and a suitable technology for many fields of human activity (educational and retail sectors, medical institutions, etc).
Anyway, returning to the subject of the prognosis for crypto, we would like to share with you some forecasts on the current subject:
1. Сrурtосurrеnсiеs would probably receive more patronage from institutional investors
Every year the number of major investors, which want to put their money in crypto assets grows. The same happens to institutional investors. The government are also interested in crypto, thus, they are interested in its regulation.
Apparently, this phenomenon has its pros and cons. The good side of regulation is that institutional investors will have more confidence in the crypto market. The cons include many factors, but the most significant is a serious contradiction with the definition and initial idea of crypto, which is intended to be decentralized, meaning “away from centralized control”, and consequently government hands.
2. Failure of more than 95% of cryptocurrencies
Some experts claim that no less than 95% of cryptocurrencies existing today are doomed to fail. It can be comparable to the dot-com bubble in the late 1990s. Some experts even argue that it can happen in the coming year.
3. Cryptocurrency market will remain volatile
Unfortunately, you have to accept it as a fact of life, at least for now. The crypto market is considered to be the most unstable. Experts from all around the world are searching for the way to stop, or at least reduce the volatility of сrурtoсurrеnсіes. The main reasons for such instability are lack of intrinsic value of crypto assets, the lack of institutional capital, and the implementation of regulations.
4. The government would probably begin to purchase crypto
We understand how it sounds exactly like a conspiracy theory. However, many experts are sure that the governments of many countries already own a lot of crypto assets. It is one of the ways to perform so-called “shadow transactions”. After all, it is one more way to strengthen control of the crypto market.
5. China would continue to invest in blockchain and crypto actively
China is one of those countries that are not shy about investing in blockchain and cryptocurrency. Multiple experts in the crypto field believe that this trend continues. However, they are also sure that China will no longer invest in bitcoin. There are ongoing debates concerning the digital currency China will invest in, while some professionals claim China will probably launch its own cryptocurrency. That move could have a beneficial effect for overall cryptocurrency legitimacy.
6. Venezuela is not the only one
Venezuela is not the only country to launch a national crypto. Experts state that national currency inflation could be a problem for many countries. Thus, some countries would probably follow the example of Venezuela and its government.
7. More and more companies pay freelancers in crypto
Many major firms’ representatives allege this trend will continue. Moreover, it will strongly increase the demand for cryptocurrency. Nevertheless, it raises a number of important issues, as a minimum, new fiscal reforms would be required in the very near future.