Why Crypto-Currencies Are The Key To The Future

On paper, digital currencies should not make any sense. Unlike fiat currency they are unbacked by assets of any kind, they have no tangible presence or value and they are not controlled by any one entity. Yet, digital currencies such as Bitcoin and Ethereum have flourished over the past few years. In fact, they’ve grown to such a scale that even governments and financial entities have adopted it.

When the enigmatic and elusive Satoshi Nakamoto first released Bitcoin, he/she/they envisioned a currency which would be free from government interference and self-regulating.

This digital currency has now grown to become one of the most widely traded and accepted forms of crypto in the world today. The rise of cryptocurrency has not been entirely smooth these past few years. Governments have banned and even outlawed it and some experts regard it as being nothing more than a massive pyramid scheme. From what we’ve seen it’s clear that cryptocurrency is not going anywhere. In fact, it could have the potential to even take over the world.

But we digress. Before we move too far into the future, here’s how we expect the world of cryptocurrencies to evolve and develop.

1. Cryptocurrencies will become a literal alternative currency

2019 has been an exciting year for the United States of America. The escalating tensions caused by the U.S-China Trade War coupled with the longest bull-run in American history have had investors scrambling left and right.

However, eventually all good things must come to an end and when that happens, the crypto market will be there to cushion investors. As we’ve seen, an escalating U.S.-China Trade War is no good for anybody and investors have chosen to turn to cryptocurrencies in uncertain times.

Thanks to the deregulated nature of cryptocurrencies, investors have turned to it as a safe haven for their assets. Being unaffected by burgeoning geopolitical tensions means that it is a particular favorite for investors.

Hence, we may perhaps see an increase in cryptocurrency valuations when the bull-run in the States comes to an end. As investors seek to shore up their holdings, they may turn to cryptocurrency as a kind of alternative currency.

2. Regulated cryptos may be a thing

In the past, cryptocurrencies were located largely in the realm of deep web surfers and people on the fringes of society. Nowadays however, cryptos have become a hot commodity for investors and speculators.

With various corporations like J.P Morgan and even Facebook jumping into the mix, it would appear that regulated cryptos may begin to rival Bitcoin and its counterparts.

While deregulation and anonymity are a large part of what makes cryptocurrencies unique, many businesses have realized the power of the blockchain. From instantaneous transfers to transparency, regulated cryptos have all the benefits of more traditional cryptos minus the volatile nature.

However, given significant pushback from regulators and congress, it may be some time before we see regulated cryptocurrencies taking off in a real way.

3. Cryptocurrency payments as a part of the mainstream

With the mainstream opening up towards the idea of crypto, major retailers all over the world have also begun offering crypto payment options. The flexibility offered by cryptos coupled with the dozens of crypto-payment solutions being developed means that we may very well see Bitcoin or other currencies rivalling fiat currency payments.

As of now, plenty of freelancers working remotely also accept cryptocurrency payments. Citizens of countries with unstable governments such as Venezuela and Zimbabwe have also turned to cryptocurrencies in order to circumvent restrictions and high inflation rates.

Meanwhile, we already see crypto brands, like eToro cryptocurrency trade system sponsoring major soccer events and Premier League teams. This means it is becoming a mainstream business, that is no longer a ‘shady urban legend’.

It is fair to say that the market for cryptocurrencies is an exciting one. With time, we can only expect cryptocurrencies to play a larger role in our world.