Open in app

Sign in

Write

Sign in

Will Cryptocurrency Survive? The Future of Cryptocurrency

POKKET Official 2
POKKET Official
Published in
6 min readApr 7, 2022

Cryptocurrencies have always fascinated investors and traders, especially in recent years. Their values have skyrocketed to unprecedented heights, making investing in such assets a lucrative venture. However, some concerns can weigh down perceptions, too. Let’s take a closer look at the future of cryptocurrency and what are relatively safe avenues you can invest in?

What is the future of cryptocurrency? Most cryptocurrency investors and traders are looking for the answers to these questions. However, the answers to such questions and concerns depend upon which side you look from. Cryptocurrency proponents will see unlimited potential, while critics might see nothing but risk. So here is an attempt to find sensible answers to questions like, ‘Is cryptocurrency really the future?’, and ‘how many cryptocurrencies will survive?’.

(Image Source — Pixabay)

The Future of Cryptocurrency

If the number of users is the only criterion to decide whether cryptocurrencies will survive, then the answer should be a resounding YES! The following statistics drive home the point firmly. The graph clearly shows how the number of cryptocurrency users increased from 5 million in 2016 to nearly 221 million by the middle of 2021. By the end of the year, the figures had swelled to more than 300 million globally.

Here are some more statistics that prove cryptocurrencies have a promising future.

(Image Source — Statista)

Thus, the cryptocurrency future of money seems bright from an optimistic viewpoint. However, there are worries about using the underlying technology and its capacity to disrupt the established traditional financial systems.

Cryptocurrencies — Boon or Bane

The prime quality of cryptocurrencies and their underlying Blockchain technology is their inherently trustless system. Furthermore, decentralization ensures that financial institutions, governments, or national regulations do not regulate these financial platforms. Hence, its supporters feel that cryptocurrencies are superior to fiat currencies, such as the US dollar, because they are not dependent on the US Federal Government.

On the other hand, its primary drawback is that cryptocurrencies are not entirely trustless. Their function relies on the underlying infrastructure powering these cryptocurrencies. Therefore, much depends on the whims and fancies of the organizations and governments that can theoretically make changes to their function at a fundamental level.

Cryptocurrencies — Vision Compromised

Cryptocurrencies were designed to be a borderless and decentralized alternative to fiat or centralized currencies. They rely on a P2P network of systems for verifying and authenticating transactions rather than depending on a third-party mediator. However, fourteen years since the invention of Bitcoin, the initial vision seems to have been compromised because investors with massive cryptocurrency holdings can control its prices in the market. In addition, it has resulted in sacrificing the efficiency of mining farms.

However, the positive aspect is the constant growth of a vibrant crypto ecosystem with more than 300 million users today and with platforms such as Pokket that allow users to earn interest on their crypto assets. Furthermore, with over 11,000 cryptocurrencies traded on exchanges globally, blockchain technology proves its worth solving complex financial issues. Consequently, institutional investors have started to consider crypto assets as viable investments.

Cryptocurrencies — Increasing Acceptance

Cryptocurrencies are gaining acceptance globally today. For example, El Salvador became the first country to announce Bitcoin as a legal tender on June 9, 2021. While the US dollar is its primary currency, El Salvador allows using cryptocurrencies for business transactions. Besides, several countries have been considering passing legislation for cryptocurrencies’ regulations, hinting towards their acceptance, at least as a “digital asset.” It shows that the world is gearing up to accept cryptocurrencies openly. Thus, it supports the cryptocurrency proponents who foresee an optimistic future for cryptocurrencies.

Cryptocurrencies — The Drawbacks

Currently, cryptocurrency is at a crossroads between using it as a medium for daily transactions and being a store of value. The following are some minor downsides that are likely to be resolved in the near future.

  • Volatility: While many governments are considering to allow cryptocurrencies as legal tender, their volatility proves to be their most significant stumbling block. For example, the value of Bitcoin rises to US$60,000 one day and slumps to below US$40,000 in a short while. However, over the long term (considering over four years), cryptocurrencies have generated incredible returns for investors. Additionally, platforms such as Pokket offer savings accounts for cryptocurrencies allow you to get the best results from your crypto portfolio.
  • Security: Secondly, the security issue is significant because there are numerous incidents of stealing cryptocurrencies from exchanges by malicious actors. Primarily, the security issue arises because of the lack of awareness around cryptocurrencies and the various tools required to trade or store cryptocurrencies. As people get more aware of these aspects and start adopting cyber hygiene practices, we’re likely to see a decrease in crypto-related scams.
  • Transaction Fee: Other issues that require immediate attention include scaling problems such as slow networks and high transaction fees. In addition, there have to be technological advancements, especially with cryptocurrency users increasing daily. For cryptocurrencies to be considered a viable investment or a form of payment, the underlying blockchain should be capable of handling millions of transactions in a short time. With new consensus mechanisms being developed, this issue will also be resolved in the forthcoming future.

As the crypto ecosystem expands, experts are optimistic that the future will witness a massive explosion of low-cost, high-speed transactions to transform value exchange, similar to how the internet changed IT.

So, Which Cryptocurrencies Will Survive?

History shows that cryptocurrencies having value storage will stand the test of time. For example, Bitcoin, Ethereum, etc., can become preferred cryptocurrencies because they have the qualities to survive a market crash. Today, the market has many cryptocurrency investment platforms burgeoning everywhere. Therefore, choosing the right platform is crucial for investors. Pokket is a trusted platform and an excellent choice because it provides opportunities for investors to earn income on their idle crypto assets while they hold on to them. Besides, it allows crypto savings and gaining a continuous income stream for the investor.

Final Words

So, the answer to the question, ‘What is the future of cryptocurrency?’ should be, ‘It looks promising.’ However, there has to be greater acceptance from governments globally. Besides, the crypto markets require some innovative technological revolution to allow quicker and safer transactions. For those who are optimistic about the future of cryptocurrencies, the best thing to do would be to HODL your crypto assets, which you can do with investment platforms such as Pokket, which allows you to easily earn passive income.

References

More in Your POKKET
Cryptocurrency
Bitcoin
Ethereum
Crypto
Cryptocurrency Investment

--

--

POKKET Official 2
POKKET Official

Written by POKKET Official 2

7 Followers
Editor for

Help

Status

About

Careers

Press

Blog

Privacy

Terms

Text to speech

Teams