Back in 2009, Bitcoin was regarded as cybercrime and illegal drugs quickly changing.
Little did there knew that in some years to come, the power of blockchain would rise across the entire financial landscape, changing how we view money and how we transact. Now, Bitcoin and cryptocurrency is much more recognized than it was just a few years ago.
Seeing how massively the cryptocurrency world has changed over the past years, this article looks to the future of cryptocurrency. What could happen over the coming decade – and what effects could increased crypto over the coming years?
Let’s, first take a look at what has come before to understand the possible future of cryptocurrency. Early adopters of cryptocurrency typically came from a computer science or programming background. The first part of Bitcoin were often new college graduates, or mid-term drop-outs that saw an early opportunity and went in.
Some of the first Bitcoin wallets were extremely difficult to use, requiring the entire Bitcoin blockchain and software to use. This took a big amount of skill to navigate and many people lost funds from mistakes using early wallets.
Crypto wallets are everywhere now, catering to all types of needs.
Cryptocurrency exchanges have also come a long way in recent years. In their starting, many prominent crypto exchanges were exposed to hacks, as this type of security was still a very new concept.
Of course, now we have super-secure cold-storage custody, KYC and AML regulations in place on most major exchanges. Coinbase openly admitted that they would be passing user data to regulators and tax officials.
The best development in blockchain technology was the introduction of smart contracts. Smart contracts allow funds to be moved from one wallet address to another when a specific set of events occur. Smart contracts are immutable and cannot be altered, and helped lay the pipework for the DeFi (Decentralized finance) revolution.
There have been some terrible hacks and scams in crypto throughout the years, with some of the most notable being Mt. Gox and Binance. This wreaked havoc throughout the crypto community, placing a lot of fear and distrust among users, pushing many people out of the market.
Despite this, a lot of these people seem to have returned to the scene in recent months, with crypto exchange volumes reaching record levels. Exchange hacks are still around, but the exchanges are becoming better equipped to deal with attacks, and many exchanges are preparing contingency funds in case of an attack. As such, one could hope that scams will keep becoming more rare in the coming decade.
In the early days, a lot of people could lose a lot of money during bear markets. With cryptocurrency in its infancy and so many newcomers to the market, extreme volatility meant that a lot of people got rekt due to inexperience and greed.
With the increase in blockchain education and market experience, people are now viewing bear markets as a good time to accumulate. Huge market dumps were once a cause for panic, with the media going crazy every time there was a correction. Now though, people look forward to timing the market and buying the dip. People are no longer afraid of bear markets.
At the time of writing, according to research, there is almost about $7 billion worth of BTC held by 13 publicly traded companies, and this list is growing every day. The exponential rise of institutional investment into Bitcoin shows that the future of cryptocurrency is deemed a safe hedge against economic uncertainty, hence why Bitcoin is often referred to as “digital gold”.
Tech giants such as Microstrategy and Square have added substantial amounts of BTC to their balance sheets, indicating a positive sentiment from investors and shareholders. Grayscale, currently the largest publicly traded crypto hedge fund, recently launched a national TV ad campaign for Bitcoin, showing that confidence in crypto is growing!
THE FUTURE OF CRYPTOCURRENCY
Cryptocurrency no longer relies on the downfall of the traditional financial system for it to thrive, rather, blockchain technology is changing how we transact and think about money, currency, and finance, informing policymakers and those in positions of power. With so many user-friendly dApps and fiat on-ramps, the future of cryptocurrency is outpacing traditional finance.
The legacy financial system tried for years to create a negative sentiment around cryptocurrency, but alas, governments, banks, hedge funds, and enterprises are all embracing the power of the blockchain.
As the banks and traditional financial institutions continue to adopt blockchain technology, the use of cryptocurrency will be commonplace and wide-spread. Just like Apple Pay and PayPal have become the norm, so too could cryptocurrency.
Cryptocurrency is revolutionizing the gaming industry, and it is now possible to travel the world with crypto, and soon we will see mortgages, insurance, and all other kinds of services incorporating blockchain technology!
Cryptocurrency is no longer a threat to the traditional financial system, rather, it is leading the way, showing the outdated institutions how to adapt to a new paradigm of digital and technological innovation, while showing users a path toward financial freedom.