Over the last decade, cryptocurrency has accomplished a lot. Bitcoin has progressed from an intriguing experiment to a key component of many investors’ portfolios. It’s obvious that cryptocurrency is here to stay, but what’s the outlook?
INNOVATION
Bitcoin competitors have been working to make crypto quicker since the launch of Litecoin in 2011. Ethereum 2.0 is expected to generate over 100,000 transactions per second in about ten years. As this technology advances, efforts to improve speed and security will remain a priority. However, this isn’t the only efficiency improvement the future may bring.
One of the hot topics nowadays is the significance of reducing the resources required to earn cryptos. With Bitcoin mining approaching 130 TWh per year, environmentalists and ESG [Environmental, Social, and Governance] investors are pushing for other cryptocurrencies to be included to find greener alternatives, such as proof-of-stake. Even Elon Musk is now warning about Bitcoin’s massive environmental impact.
REGULATION
There has been some recent buzz about cryptocurrency legislation, which has long been approaching. Expect to hear more about crypto legislation in the future. Stablecoin regulation has piqued the curiosity of US officials. It is essential to regulate cryptocurrency to keep investors safe.
The cryptocurrency market has risen to a size of more than $1 trillion, attracting the attention of regulators all around the world. China, for example, and at least 14 other nations have imposed significant restrictions or outright bans on cryptocurrency transactions. As policymakers try to comprehend and regulate the new technology, the United States and other countries have confusing cryptocurrency legislation. New rules, of course, might have a significant influence on the crypto sector and its potential for expansion.
Most rules aim to increase transparency to dissuade illicit businesses from using cryptocurrency. Other restrictions prevent fraud in security-like offers, such as initial coin offerings (ICOs). Tax authorities, on the other hand, want to ensure that bitcoin traders and investors pay their due amount of taxes.
New laws and regulations may create hurdles, but they also have the potential to eliminate roadblocks to the industry’s progress. For example, many prominent organizations, such as banks, are cautious about accepting cryptocurrencies without explicit norms, fearing that it would influence their other activities. Clear legislation might bring clarity to these groups, allowing larger companies to participate and develop the sector.
ADOPTION
Ric Edelman, the creator of the Digital Assets Council of Financial Professionals, forecasts that by the end of 2022, more than 500 million individuals worldwide will hold Bitcoin. Many prominent corporations have begun to accept cryptocurrency. For example, AMC just announced that it would begin accepting Bitcoin payments before the end of the year, while Square allows any retailer to take cryptocurrency. Consumer adoption rates may climb as more businesses support cryptocurrency, owing to increased knowledge and availability, particularly among those who have previously dabbled with crypto.
BITCOIN ETF
Some cryptocurrency investors believe the first Bitcoin exchange-traded fund (ETF) in the US may be authorized this year, offering investors immediate exposure to the cryptocurrency. Last year, the Securities and Exchange Commission approved ProShares’ Bitcoin Strategy ETF, although it only follows Bitcoin futures contracts. In addition, analysts think a Bitcoin Spot ETF will be approved since the market is now large and developed enough to sustain it.
Finally, let’s look at a few headlines from CoinMarketCap to support cryptocurrency’s outlook.
- Five Hotels in Dubai Unveils Support for Bitcoin (BTC) and Ether (ETH) Payments.
- Bank of Canada: Crypto Needs to Be Regulated Before it Gets Too Big
- Helium Network accelerates multi-network protocol expansion
- Mastercard Buys Into NFTs, Enables Purchase Of Digital Art Using Credit Card
- EU said to be nearing agreement on crypto regulation, Bloomberg reports
- Farfetch to begin accepting crypto payments, following other luxury companies
- PwC survey sees more hedge funds investing in crypto, despite volatility
- Bitcoin (BTC) Will Explode by Over 700%, According to CEO of $80,000,000,000 Asset Manager: Report
