The Future of Cryptocurrency: What You Need to Know for the Next 5 Years
How will cryptocurrency change in the next five years? Well, I’m not sure that I’m the best person to answer that question, but one thing’s for sure: if you’re planning on getting involved with this new form of currency, it would be prudent to do your research before you invest any money into it. Read on to find out how cryptocurrencies are faring right now and what kind of changes you can expect to see in the near future—and far beyond it, if we have any say in the matter! cryptocurrency future.
|The Future of Cryptocurrency: What You Need to Know|
The cryptocurrency market has grown more than 1400% since the beginning of 2017, and it shows no signs of slowing down anytime soon. Bitcoin’s value has almost doubled in 2018, and the next generation of altcoins (like Ethereum, XRP, Litecoin, etc.) continues to solidify its position in the market as well. The future looks bright for cryptocurrencies around the world – but what will that future actually look like?
Currency as an Asset
Given the current uncertainty in global economies, cryptocurrency as an asset offers stability. And not just in theory, but on a real day-to-day basis. If you had invested $100 in Bitcoin back in 2011 and kept it there until now, your investment would be worth more than $18 million. But there are so many other cryptocurrencies that offer incredible value today—some for the best upcoming cryptos for 2019, some specifically designed to tackle issues like security and privacy—that diversifying your portfolio is always important. If you’re thinking about dipping your toes into this market, here are three of our favorite picks right now.
Stablecoins Are Here
A stablecoin is a cryptocurrency whose price is anchored to another more stable asset. That means that their worth will remain relatively unaffected by things like global market fluctuations. This new form of currency is poised to become one of the future currencies in our monetary system, which has historically not been very stable. It is important that we keep an eye on what could happen in 2021, when cryptocurrencies will potentially replace our current system entirely. If this does happen, it will be crucial to understand how this cryptocurrency future can impact you and your personal finances.
Investors are Investing
Bitcoin investors have been able to witness its recent highs that were a result of cryptocurrency fever as well as an overwhelming interest in Bitcoin's potential as a digital currency. Bitcoin hit a record price high on Monday, at $9,696 (according to CoinMarketCap). However, on Wednesday evening, it plunged below $8,000 - taking with it many hopeful speculators. But this isn't stopping investors from looking ahead at the future crypto trading market and what cryptocurrencies might be worth in 2021 or 2027. We'll go over some of the most popular and best upcoming cryptos.
First off, we'll start by talking about two coins: Bitcoin Cash (BCH) and Ethereum Classic (ETC). These are two highly popular currencies that are likely to do very well in the next few years. Ethereum Classic is one of those currencies that has managed to successfully branch out into new markets by giving people more reasons to invest their money.
Institutions Are Getting on Board
Online cryptocurrency exchanges allow you to use fiat currency to purchase cryptocurrency. It is becoming more and more common for universities, governments, businesses, and banks to accept crypto payments. As these institutions begin accepting digital currencies as a legitimate form of payment, it will further legitimize cryptocurrency as an option.
It's safe to say that crypto isn't going anywhere anytime soon! The next five years may even see a transition from altcoins to cryptocurrencies. Some experts believe altcoins have lost their utility because they are not really capable of performing the same functions as bitcoin or ethereum. Instead, some think we will see cryptocurrency start to take over the space created by these coins in online marketplaces such as Amazon or eBay. There is still speculation around what cryptocurrency future holds but one thing is certain - there's never been a better time to get on board with digital currency than now!
Public Companies Are IPO’ing (Initial Public Offering) Using Crypto Assets
Companies are now taking the next step in IPOing their stocks, which involves selling tokens that represent a share of ownership. For example, if a company were selling $100M worth of coins at $1 per coin, investors would receive 100 shares each worth $1. Bitcoin (BTC) and Ethereum (ETH) have been some popular currencies used to raise funds through IPOs.
It is important to note that all of these initial public offerings have taken place using crypto assets. This means it has nothing to do with any crypto futures exchange or regulatory status like a security, commodity or currency product. However, just because they haven’t received such designations doesn’t mean they won’t soon or in the future.
The future of cryptocurrency looks promising. New apps, like the ability to store cryptocurrency within a social network, will further open the door to mainstream adoption by average consumers. And with more governments and financial institutions looking into adding blockchain as a service to their operations in 2018, major changes are on the horizon.
Those of us who are interested in crypto now need to be ready for what these changes might look like. Mining power is only going to become more concentrated moving forward, for example, and altcoin prices could become even more volatile than they already are. So if you're looking to invest in cryptocurrency over the long haul, make sure you do your homework—and consider what might happen if things don't go according to plan.
What's your take? Is cryptocurrency just a fad, or is it here to stay? Will it revolutionize the way we conduct business, or will it ultimately find its place alongside the advent of other seemingly revolutionary technologies of the past? Share your thoughts in the comments below.