Cryptocurrency is a new and emerging market that has been gaining steam over the past couple of years. With the rise of blockchain technology, digital tokens that are based on this technology have also seen a surge in popularity and interest. However, with so many types of cryptocurrency available on the market today,
it’s difficult to know where this market is headed in the future. To get started investing in cryptocurrency, you will first need to choose which type of digital currency you want to buy and begin researching potential options. However, given the extensive number of different coins available on the market today (not to mention all their various features), it can feel like viewing an incomplete jigsaw puzzle with missing pieces at times. That said if you’re interested in how the future of cryptocurrency might play out, read on for our thoughts about what’s going to happen next.
What Is Going to Happen with Cryptocurrency in the Next 5 Years?
The future of cryptocurrency is difficult to predict. Cryptocurrency is a new and emerging market that has been gaining steam over the past couple of years. With the rise of blockchain technology, digital tokens that are based on this technology have also seen a surge in popularity and interest.
While it’s unclear how the future will play out, some major factors may affect where cryptocurrency goes for the next five years. One key factor to monitor is regulation. Governments worldwide have made plans to regulate cryptocurrency in one form or another as things continue to develop on this front. For example, China has outlawed ICOs altogether and India has called for “a joint regulatory framework” with other countries. Suppose governments continue to make efforts to regulate cryptocurrency.
In that case, it could have a major impact on which coins are available for people looking to invest in this space going into the future. Another important factor happens with Bitcoin specifically. Remember, Bitcoin was built as a decentralized currency with no ties to government-issued currencies like the dollar or euro; however,
with countries banning cryptocurrencies altogether (as we just mentioned) and organizations such as JP Morgan Chase taking steps towards creating their cryptocurrencies, it’s possible that Bitcoin could be less decentralized than before in the future if these trends continue unchecked into the next five years. Finally, we should mention that no one knows what will happen in the future when it comes.
Where Do You Think Cryptocurrency Will Be in 5 Years?
As cryptocurrency becomes more popular, it’s only natural that the price goes up. As a result, you may wonder where you think cryptocurrency will be in 5 years. It’s hard to say for sure, but there are a few distinct possibilities. The first possibility is that cryptocurrency will continue to grow and become more popular as time goes on. It’s possible that, over time,
cryptocurrency becomes the most used form of currency in the world. The second possibility is that instead of growing in popularity, cryptocurrency will decline and lose its value as an investment. The third possibility is that people will start turning against cryptocurrency altogether because they believe it to be a scam and a waste of money.
More Regulation and Standards
With so many new and emerging technologies on the market, it’s easy to imagine that some might require regulation to keep both the public and those who are involved in these markets safe. This has already come up in discussions about cryptocurrency. In November 2017,
for example, the US Commodity Futures Trading Commission (CFTC) issued a statement cautioning investors about cryptocurrency trading and its risks of being unregulated by companies or governmental bodies. The CFTC said that investors should be cautious when investing in cryptocurrencies because they may not be insured under any circumstances.
This is a reminder to anyone who is considering investing in cryptocurrency that there is a certain amount of risk involved with this type of investment – no matter how much you know or don’t know about it. As time goes on, we can expect more regulatory bodies to take notice of Bitcoin and other cryptocurrencies as they emerge. Thorough regulations will probably follow as governments figure out what the best course of action would be for digital currencies like Bitcoin and Ethereum in the future.
Smart Contracts Becoming Standard
One of the most significant developments in the coming years is likely to be smart contracts. We’ve already seen some innovative uses for smart contracts, like in healthcare,
real estate, and even electric grid startups. In a nutshell, a smart contract is an agreement between two or more parties that can be executed automatically thanks to blockchain technology.
Unlike traditional contracts that require a lawyer or notary to execute, a blockchain-based contract requires no third party and is easily accessible to anyone with access to the internet.
In the next 5 years, we expect smart contracts will streamline many industries and become standard practice by 2020-2025. They are likely to be used heavily in insurance and legal systems around the world. Not only will they help make transactions more efficient, but they also provide benefits such as fairer pricing and less paperwork.
Merging of Blockchain and Artificial Intelligence
The future of cryptocurrency includes the merging of blockchain and artificial intelligence technologies. Blockchain technology has been used to create digital currencies, such as Bitcoin and Ethereum. These are decentralized, peer-to-peer networks that allow users to transfer currency without a third party.
Blockchain is a public ledger that stores all transactions in chronological order, which makes it very secure. This technology could apply to essentially anything with an inherent value and can track items more efficiently than traditional methods.
Artificial intelligence powers cryptocurrency mining on the blockchain. Here, the software is used to solve complex mathematical problems to mine digital tokens anonymously. As the two technologies continue to merge, we will see them playing a larger role in many industries outside of just finance.
For example, some people have suggested using blockchain for self-driving cars or other forms of automation. AI will automate interactions with customers and offer services based on previous customer data that was stored on the blockchain network.
Blockchain will also help power our internet-of-things (IoT) devices by providing a way for the devices to communicate with each other securely and privately through smart contracts. It’s difficult to predict exactly how these types of applications might evolve in the coming years, but there will probably be many changes coming over the next few years as both technologies become increasingly intertwined and intertwined with one another.
Conclusion
Cryptocurrency is a relatively new, unregulated, and volatile market. The future of cryptocurrency is hard to predict and there are some possibilities. If you’re an investor, it’s essential to understand that the cryptocurrency market is highly speculative and that you can lose money. However, if you’re not an investor, the future of cryptocurrency may not matter to you as much.
