Cryptocurrency has seen different phases over the last years. In the last few months, we have seen new heights in the price for different cryptos. The industry has changed the world of business in ways that people could not believe.
This year alone, investors have seen many changes in the industry, raising many questions regarding its future. According to some of the most famous enthusiasts of cryptocurrency, such as Dave Abner, 2021 has been the breakthrough of cryptocurrency.
It’s also believed that having broken even in the last few months, this has improved the focus and attention of many investors. Therefore, they are a great possibility of greater growth in the future in the cryptocurrency business.
While exact predictions are close to impossible, experts have tried to give a rough estimate of what might happen to cryptocurrency in the near future. Most of the supporters see possibilities, while critics seem to be quite sure that this is a great risk. Read through some of the expected changes in the crypto space.
Broader Institutional Cryptocurrency Adoption
In 2021, many major companies such as MC, PayPal, and Tesla have shown great interest in cryptocurrency and are banking on it.
MC, for example, just announced that before the end of the year, it would be able to take Bitcoin payments. PayPal and Square, for example, are already allowing their customers to buy crypto on their platforms.
Tesla continues to waver on whether or not it will accept Bitcoin payments, despite the fact that the firm owns billions in cryptocurrency. Experts expect that this trend is at its initial stages and will pick up very soon.
Some analysts believe that in the second half of this year, larger, worldwide organizations will accelerate adoption even further. If companies such as Amazon and large banks adopt the trend, most companies will be pushed to join them.
As a large store, Amazon may push other companies to accept it and give a lot of legitimacy.
Indeed, by publicizing a job advertisement for a digital currency and blockchain product lead, Amazon has recently prompted rumors that it is moving in that direction. Walmart also announced that they have been looking for a blockchain expert to help develop their strategy.
The Results of Institutional Crypto Adoption
It doesn’t seem to make sense on cryptocurrency payments right now for most retailers and investors. Therefore, it will take a while before small and medium businesses adopt cryptocurrency usage.
According to BEX Bank experts, increasing the use of crypto by small and medium businesses will increase the daily usage of cryptocurrency by the end-user. This will have a great impact on crypto prices due to increased demand and value. However, this change is highly dependent on the duration large institutions, and small-scale businesses take to adopt cryptocurrency use.
Read: Digital banknote or Central Bank Digital Currency (CBDC)
What do the Experts Say?
According to Ivory Johnson, the founder of Delancey Wealth Management, traditional finance will be disrupted by cryptocurrencies since one of their most appealing features is the ability to send money across borders at a very small cost or seasonal currency fluctuations.
Bitcoin could become the world reserve currency or the next AOL, making a lot of people rich until it was dethroned by superior technology.
Frederick Kaufman, author of “The Money Plot state that in 50 years, the dollar will be similar to cryptocurrency than it is to silver and gold.
Dan Egan, the vice president of behavioral finance, argued that cryptocurrency has proven itself useful, and it is less likely to go away. However, there is a need to consider where and how to meet the increasing demand for cryptocurrency in the market.
Read: Bitcoin Futures ETF – A New Direction to the Crypto Market
Bitcoin’s Future Outlook
Bitcoin is the largest cryptocurrency by market value; the rest of the market tends to follow its patterns. Therefore, it is a good predictor of the crypto market in general.
Bitcoin’s price has been on a roller coaster ride so far in 2021, reaching a new all-time high in October for the second time this year. This is the year’s second record high, following a prior high of $60,000 in April and a subsequent dip to less than $30,000 in July.
Because of this volatility, experts recommend that you limit your crypto investments to less than 5% of your overall portfolio at first.
Read: Metaverse and Cryptocurrencies – A Relative Study
The Reality of Untrustworthy Systems
Since cryptocurrency is not linked to any government or financial entity, most enthusiasts say it’s safe and trustworthy. They might also claim that Bitcoin is superior to traditional physical currencies since it is not reliant on the United States’ federal government.
Regardless of whether you think it’s a good or negative thing, it might not be correct. Cryptocurrencies aren’t entirely trustworthy. They remain dependent on the underlying technology that powers cryptocurrencies such as Bitcoin.
Should You Invest in Cryptocurrencies?
If you’re thinking about investing in cryptocurrencies, you should approach your investment in the same way you would any other extremely speculative business.
A cryptocurrency, as previously established, has no fundamental worth other than what a buyer is prepared to pay for it at any given time. This makes it extremely vulnerable to large price movements, increasing the chance of a loss for an investment.
If you can’t handle that level of risk, search for assets that are better suited to your needs. While opinions on the merits of Bitcoin as an investment remain divided, advocates point to its limited quantity and expanding usage as value drivers, while skeptics see it as just another speculative bubble.
Conclusion
The future of cryptocurrency is not very definite. There are many possibilities that can happen in the world of digital money.
Many experts have predicted that cryptocurrency will be here for a while. In the near future, it will be adopted by many institutions. This will likely increase demand, and hence value will go up tremendously.
Moreover, experts say bitcoin could become the world reserve currency or the next AOL, making a lot of people rich until it was dethroned by superior technology.
However, there are also fears about the trustworthiness of cryptocurrencies. Cryptocurrencies aren’t entirely trustworthy because they are dependent on the underlying technology that powers cryptocurrencies such as Bitcoin.
Therefore, when investing in cryptocurrency, approach the business while considering the risks. Do not put all your eggs in one basket.
