Future of Cryptocurrency
For a long time, the number of cryptocurrency investors has been steadily expanding around the world, but it has recently exploded.
Furthermore, the investor profile has changed. It’s no longer such a wispy passion in the age of meme stocks and stimulus cheques. Rather, ordinary people have viewed this new asset class as an opportunity to supplement their portfolios with potentially more profitable, if riskier, assets.
In comparison to 2018, elderly customers have started to invest in cryptocurrency at a considerably higher rate. Consumers over 35 years old account for nearly half (47 percent) of those who plan to invest in bitcoin in the next six months in the United States.
In this article, we shall talk about the future of Cryptocurrency!!
Crypto offers a new way to manage finances for many of these existing and potential investors, but some still consider that the financial independence of crypto has released them from the restrictions of traditional banking.
The benefits of cryptocurrencies have just begun to draw institutions, and traditional finance is scrambling to meet the rising demand, such as the U.S. Bank’s recent launch of a bitcoin custody service, which lets hedge funds invest in the digital currency.
While increased institutional investment means more potential for average investors, it also challenges the ability of digital currencies to function outside of traditional finance. The paradox begins here.
The infusion of institutional capital into cryptocurrencies made in recent years has shifted the market’s power structure. Thirteen years ago, cryptocurrency users were attracted by a desire to shake up the elitist, institutionalized world of finance, to provide a universally accessible way to move money and pay for products and services, independent of personal circumstances.
To deal in crypto, unlike traditional banks, you didn’t even need an address; all you required was an internet connection. In theory, cryptocurrency relies on the collective activities of everyday users to self-regulate; they secure and update the transaction log — the blockchain — and the process allows anybody with a computer to mine coins.
Fast forward to 2021, and cryptocurrency’s future looks very different. Bitcoin miners are no longer the only ones benefiting from its success, nor are they the only ones mining it. Over time, the mining network has been encircled by a few businesses that can offer the massive quantities of processing power and electricity required to mine at scale, making it extremely difficult for individual users to participate.
At the same time, the discovery that big corporate expenditures, such as one by Tesla, caused the price of bitcoin to soar 20% in a single day, but even more doubt about the market’s democratic nature.
As with so many other things, what began as a fringe movement has become corporate as a consequence of its own success.
Crypto trading and mining, as well as the entry of new businesses into the market, has attracted the curiosity of government regulators in a way that has never been seen before.
Governments have done very little to oversee or supervise the bitcoin market ever since the start, compared to other established investment categories. For the most part, cryptocurrency has been permitted to spread as a decentralised financial asset around the world.
The laissez-faire approach to decentralised finance is fading now. Surprisingly, investors support more rules, despite divergent opinions on what these policies should entail and who should be in charge of enacting them.
A glance into the future !!
While governments will ultimately decide the future of cryptocurrencies, businesses, many of which are starting up to meet the demands of an expanding market that governments have so far ignored, can also have an impact. This could be accomplished by giving knowledge and resources to enquiring intenders or by promoting trades in a more relaxed, secure environment for “newbies.”
App for peer-to-peer payments Venmo is accomplishing both of these things: giving easy-to-understand content to assist educated intenders along the path and allowing users to dip their toes into crypto using a platform they’re already familiar with. Established financial institutions and fintech disruptors alike can serve as a bridge to the crypto future.
Leaning into the shifting profile of investors and predicting what the more “mainstream” audience could need is a part of that future. Traditional payment providers that provide access and education will undoubtedly appeal to older investors, while the expanding number of businesses that accept digital currencies can make the market feel much safer and more stable.
Whatever the future of cryptocurrencies contains, there’s a lot of progress to be made to balance the risks and the rewards, and there’s a tremendous opportunity for those who take on the challenge.
We hope this article provides some light on the prospective future of cryptocurrency and the endless possibilities it could hold for investors and users worldwide. To know more about the cryptocurrency industry, blockchain and NFTs, follow us !!
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