The last year has been a big one for cryptocurrency. We’ve seen Bitcoin hitting multiple new record-high prices followed by sudden drops and more institutional buy-ins from major companies. Ethereum, the second-largest cryptocurrency, has also recorded its latest all-time high last year. Meanwhile, people’s interest in cryptocurrency has skyrocketed, not just among investors but in popular culture too, thanks to everyone from Tesla’s Elon Musk to your next-door neighbor. But the crypto industry is only in its infancy, and it’s constantly evolving. Although it can be difficult to predict where things will go, we can expect lots of things in the coming months, from regulation to institutional adoption of cryptocurrencies.
So, while exact predictions are nearly impossible, let’s explore what the future brings for cryptocurrency.
Worldwide, lawmakers are trying to establish laws and guidelines to make cryptocurrency safer for investors and less appealing to cyberattackers. It is thought that investors may get hurt if stricter regulations are not introduced. Clear regulation would remove a big roadblock for crypto since companies and investors are currently operating without clear guidelines.
2. Wider Institutional Cryptocurrency Adoption
Last year in the United States, mainstream companies across numerous industries have taken interest and even invested in cryptocurrency. AMC Entertainment, for example, recently announced it would start accepting Bitcoin payments by the end of 2022. Square, Venmo, and PayPal are also betting on crypto by allowing their users to buy and trade coins within their apps. Tesla also announced it would accept Bitcoin payments, and experts predict even more of these buy-ins.
There is also a possibility that bigger, global corporations could start adopting crypto by the end of this year. As institutions get involved in crypto, they can jumpstart a chain reaction of others accepting it, adding to the credibility of this currency. This will slowly lead to more retailers accepting payments which may change the economic landscape in the future. Since analysts predict that the global cryptocurrency market will more than triple by 2030, reaching a valuation of nearly $5 billion, investors, businesses, and even governments should not ignore it.
The downside of crypto is that it can be temperamental, especially Bitcoin. When it was introduced in 2009, Bitcoin had no value. Twelve years later, its price broke $50,000, marking an increase of 74%. Consequently, many now talk about cryptocurrencies as a hedge against inflation and uncertainty related to the purchasing power of the dollar. Whether this volatility can be controlled is a question yet to be answered.
How Will Cryptocurrency Effect Global Happiness?
So, how can cryptocurrencies positively impact the world? Let’s explore:
1. It Will Reduce the Risk of Fraud
Fraud is one of the biggest concerns when it comes to digital money. Whether you’re using a credit card on a suspicious website or transferring funds, fraud is high. However, because it is not linked to your bank account or cash funds and is transferred electronically and securely with the blockchain recording all transactions, crypto can play an important role in reducing fraud, providing always-needed peace of mind.
2. It Can Increase Crowdfunding
Crowdfunding is a popular way for entrepreneurs to raise funds for their concepts and products. A larger number of investors can make small investments, contrary to few investors making big investments. Therefore, crypto can mitigate the risk, and without the risk, more investors will want to get involved. Cryptocurrency will continue to make the world a better place as it positively impacts crowdfunding.
3. It Will Change the Money Transfer Process
Although wires and bank-to-bank transfers are faster and more efficient, they can still take a week or more to be cleared and deposited, especially if it’s an international transfer. On the other hand, cryptocurrency transfer doesn’t require the same checks and balances processes that banks need before funds can be deposited. Whether national or international, crypto transfers are instant, don’t require fees, and can be tracked and safely stored in the blockchain.
4. It Can Encourage Scientific Advancements
Although we have made substantial progress in science over the past 100 years alone, critical data and information still seem to be kept secret by institutions and governments worldwide, making it difficult for humanity to continue with its collective advancements. Crypto and blockchain can help change various scientific roadblocks we face by giving everyone access to real-time data and stopping foundations, institutions, and corporations from keeping important information. For instance, Nano Vision company uses blockchain and crypto assets to create a platform that will allow every ‘global citizen scientist’ to participate in making further scientific advancements.
5. It Will Keep Corporations Accountable
There are numerous companies and industries out there using corrupt and illegal practices. Consumers want to ensure that businesses they buy from follow all the laws and regulations and work with integrity. Taking a company’s word based on what they say about themselves is not a reliable way to determine their actual practices. Cryptocurrencies will change this process and therefore change the world for the better. Blockchain cannot be altered like traditional currency. Using cryptocurrency and blockchain technologies will keep companies accountable, and consumers will know more about the companies they do business with.
6. It Will Make International Money Transfers and Transactions Safer
Aside from reducing fraud when transferring money internationally, cryptocurrency can make national transactions safer. When traveling abroad, carrying cash and cards can be dangerous. However, the use of crypto can reduce the danger of carrying cash and eliminate any exchange or transaction fees. This will keep more money in vendors’ and buyers’ hands, reducing the risk of robberies.
7. It Can Offer a Stable Alternative to Unstable Currencies
Although not all countries have national currencies that are subject to incredible inflation rates, others could substantially benefit from switching to blockchain and cryptocurrency. Crypto is accepted worldwide, and it’s not subject to exchange and interest rates. It could also provide more stability and certainty to people living in economically unstable countries.
8. It Can Give People Control of Their Money
Many people distrust banks and financial institutions, but the alternative of keeping all of their cash in their homes is also not a good option. Any talk of an economic crisis can cause them serious stress and concern about the money they’ve saved up. Cryptocurrency allows total control of money transferred from the banks and back to the users. It is not subject to banks’ rules and regulations. Therefore, anytime people can get control of their money is a pretty good thing, which is another example of how crypto can change the world for the better.
The future of cryptocurrency is closely connected to its considerable political and social impact. Digital currency has the potential to benefit everyone, from individuals to countries. For both, there is increased opportunity for ownership, financial inclusion, and power at lower cost, greater confidentiality, and better access to the global marketplace. Furthermore, at the political level, investing in blockchain technology offers an increased capacity for digital society and electronic government, with the potential to strengthen democracy, the rule of law, human rights, and anti-corruption initiatives.
Keep Reading on the series about Blockchain, Crypto, NFTs and Web 3.0. Web3: Community, Ownership, Decentralization, Utility
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