5 Year Crypto Prediction
Just to be up front, I am Clock Universe and I head up the Terracoin Foundation. We develop and support Terracoin (TRC). I was asked to write about what I thought would happen in the cryptoworld over the next five years by a Terracoin community member, so here it is.
Over the next five years I believe we are on the verge of seeing some massive changes to the cryptoworld. I think that we will see more governments and corporations creating their own cryptocurrencies, while we see a major increase of coins that specialize in a niche environment. I also think we will see an exponential growth of scam coins and the abandonment of coins after developers have made their money and moved on to a new scam coin. I think we will also see another “masternode” crazy just like we saw recently and back when POS (Proof of Stake) was first introduced. Attacks on other coins infrastructure will likely increase as people figure out that they can ruin a high ROI coin with a lazy botnet. I think we will soon see hardware released with a blockchain built in. Lastly, I think we will start to see the Bitcoin gateway dominance drop and more decentralized exchanges appear, but only if we work on this together.
As the popularity and obvious benefit of cryptocurrencies increases governments and corporations will start creating their own cryptocurrencies. For governments this can be a way to help track their economies and compete against decentralized coins. For corporations this will be a way to increase profits and drive sales through a reward program that only they have the keys to. Imagine a frequent flier program that is paid in cryptomilage. If you need some money you can sell your cryptomilage on an exchange run by the airline, or if you need to get some cheap flights you can buy from the airline run exchange to get cryptomilage. Or a gaming company creates a cryptocurrency that is only useful with their games. The more you play the more coins you get, and you can sell them on their exchange, or buy “packs” with them. As they release games they can drive up the price because their new game costs more of their exclusive coin to buy “packs.”
We have already seen a massive increase in cryptocoins that are created for only a tiny niche market. I believe we will see many many more of these. I think people will find them attractive for a while because of the return and the niche they fill might be something people really believe in. At some point I can even see trading for a coin just so you can get a discount on your electric bill, your dental care or your car payment. These niche coins will be functional and useful, but they will also be a huge pain to use. Imagine if you had to use a different currency to buy each item at a grocery store.
Scam coins have always been an issue in the cryptoworld, but since the creation of ICO (Initial Coin Offerings) and Youtube personalities taking an interest we have seen a huge uptick of scams. Already countries are cracking down on this scam, but people will figure out new ways to scam people. This means new users will be preyed upon mercilessly and it will sour the taste of cryptocoins to normal people world wide.
As more shady individuals and groups join the cryptoworld they will find is easy to attack the weak networks of some coins to buy low and sell high, or to even cripple a coin; sending it into oblivion. These attackers will be competitor coin developers or just malicious attackers out for lols. Ransoms will be a regular occurrence demanded from developers of new and old coins.
Even while all of this happening there is going to be a new masternode concept. Just like when Proof of Stake happened and so many coins adopted PoS without a thought, there will be a new masternode idea and coin. Everyone will jump on the new bandwagon. New coins will appear overnight with an even higher ROI (Return on Investment) then every thought possible before.
While this is all going down we will also see hardware released with built in blockchains. Want to buy a new refrigerator? You probably should buy one that comes pre-built to mine a niche energy credit coin. You will make money while your fridge cools your food.
This will all take place while propping up Bitcoin’s gateway dominance which will cause the price of Bitcoin to continue to sky rocket while it become more and more worthless as a currency.
Lastly, I think we will see an explosion of centralized exchanges and decentralized exchanges, while a few of these will be legit, most will just be another round of scams to swindle new holders out of their money.
I know my future predictions are bleak, but we must be aware of the challenges we face in order to defeat them.
So what do we do?
Innovation is the first thing.
We must always be innovating and adding new tech and resources. Not just copy and pasting other coin code, but true innovations. It will take time for true innovations to happen, but they always must be the goal. These innovations should be focused on making Terracoin a platform for multiple uses while always trying to be useful as a currency.
Introducing an application layer, or service layer will be helpful in that regard as people could use our masternode network to work on their own innovations which would ultimately help Terracoin and make TRC more useful as a currency (people paying in TRC to use apps built on our masternode network).
I also think a form of decentralized governance is going to be a requirement for coins to build trust. Right now most coins developers just take the money and when it spikes they can just dump and walk away to create another coin. With decentralized governance the money is at least accounted for in some way.
Next, I think we need to explain the cryptoworld to new members of the community in a better way so that they understand the risks they are taking. Not only will this build loyalty, it will also just help out the cryptoworld in general. This should include the fact that many coins are just scams and that certain networks are very vulnerable to attack from competitor coins.
Blockchain age, and the amount of time a development team has been working on the coin is also very important and I think it will become more important as time passes. Terracoin is already well suited to this since the blockchain is 5 years old and I have been heading up the team for over a year and a half.
As time passes I think we need to focus on getting on more decentralized exchanges or creating our own to break the Bitcoin gateway dominance. As governments begin cracking down on exchanges/coins or release their own coins this will become more and more important.
Lastly, I think many people want a coin to make money on but also see that the world isn’t a perfect place and would like to help the world while they make money. I think that while we are becoming the best cryptocoin in the world we also can use some of that influence and money to help other people. I think this will bring more people to the coin, and create loyalty while also just being the right thing to do. As Terracoin expands and grows our commitment to helping the world should also grow.
In conclusion, the future of the cryptoworld is always uncertain, and we will see considerable challenges. As long as we innovate, avoid common pitfalls, help new community members and help the world I see Terracoin poised on becoming the next real alternative to fiat currency.
P.S. I have been working on this post for a week or so. Yesterday morning this was on my news feed. https://www.theverge.com/2017/11/6/16611822/bjork-album-utopia-cryptocurrency-audiocoin