Featured image link: https://pixabay.com/illustrations/crypto-bitcoin-money-electronic-3569795/
The future of crypto is still uncertain. When you ask investors and non-investors alike, you will receive a different attitude or answer towards the overall outlook. Analysts are rightly worried about the risks ahead, whereas others feel incredibly confident in cryptocurrency holding a stable market position.
Even in light of the global COVID-19 pandemic, cryptocurrencies continue to surpass all reasonable expectations and blow them out of the water. Assets, such as Bitcoin and Ethereum, are reaching all-time highs. Perhaps we are gearing up for a long-term bullish run.
The Future of Crypto in Five Predictions
Over the last few months, the future of crypto has garnered significant attention. There is a strong expectation that the momentum will last even after the fanfare comes to an end. Investors can only wait and see when it comes to 2021 and beyond, but financial signals indicate a viable, fertile market.
There is one element for sure: it’s not going anywhere anytime soon. Here are five predictions on the future of crypto:
Prediction 1. Globalization Continues to Strengthen
Cryptocurrency is extremely popular across migrant worker segments when sending payments back home. Doing so allows them to provide for their families without incurring massive transaction fees or facing the bureaucratic red-tape surrounding traditional financial institutions.
Not only does crypto help maximize wealth, but crypto is also performing exceptionally well in parts of Africa, Asia, and the Middle East. This enhancement is due to cross-border payment facilitation.
These cross-border payments reach the billion-dollar-plus threshold routinely. Crypto sidesteps exorbitant remittances when sending or receiving funds.
Prediction 2. NFTs Become Top-of-Mind in Some Markets
Non-fungible tokens (NFTs) are taking a powerful hold over the market in exciting and unexpected ways. Digital assets, such as music, artwork, and intellectual property rights, can now be tracked through NFTs. The value on any of these assets increases tremendously due to this one factor alone.
Seasoned investors believe that NFTs have staying power. Even more so than some currently believe. However, it is also worth noting that individual, self-represented artists are already taking an interest.
Prediction 3. Centralized Banks Will Want to Jump In
Several countries are now launching cryptocurrencies through their central banking systems over the last year. Currently, the US Federal Reserve is in research and development work with the Massachusetts Institute of Technology (MIT) regarding the American feasibility of cryptocurrencies. However, many experts believe that the role of the government will improve cryptocurrency returns.
The introduction of centralized banks in the cryptocurrency market would strengthen and increase the demand for cross-bordered transactions. There’s limited liquidity under the current system. A wide cryptocurrency acceptance could bring many kinds from around the world into one single focus.
Prediction 4. Crypto and Retirement Go Hand-in-Hand
While many people invest in cryptocurrency to grow their wealth and disrupt centralized markets, other financial benefits are associated with it, including retirement wealth. Blockchain Individual Retirement Accounts (IRAs) are the solution as traditional financial markets become more volatile. It’s an aggressive trend that could grow with the increasing market cap of cryptocurrency.
Prediction 5. Stablecoins Shine Brightly in Traditional Markets
If Stablecoins become tethered to fiat currency, these assets could be some of the best buys of 2021. You will likely see growth in stablecoins due to non-centralized token instability, as well as key market players losing their leading positions.
One such leader, Tether, reigned dominance despite the rapid expansion. Other stablecoins are entering the marketing and pursuing Tether as its primary target. Many experts believe that it’s only a matter of time before overtaking them.
Final Thoughts and Considerations
There aren’t promises or certainties when it comes to the future of crypto. Like any market, you will see fluctuations over time. However, it’s relatively easy to say that you will not see cryptocurrency going away at any point soon.
The most exciting development lies within how non-crypto currencies are using blockchain technology. These new applications further assert the practicality and viability of cryptocurrencies and how they work. The market will continue to see interference from regulatory bodies on digital currency.
Still, they do appear to want to work in earnest.
Regardless of current market volatility, cryptocurrency has disrupted the entire financial space. You cannot upend a market without legitimacy and proof that it works. Investors can continue to hear from crypto for the foreseeable years.
Ready to Invest in the Future of Crypto?
If you’re excited to take the next step forward in crypto, start now with BitLeague. Find out more by clicking here.