When you are dealing with a technology that is as disruptive as cryptocurrency, it is always a difficult task to predict what the future might look like with any degree of precision.
This is made even more difficult by the fact that so many of the potential applications of cryptocurrencies, which will come to define its future, are still in their early stages of development.
Despite this, the early signals of what the future of cryptocurrency might look like are all there. And whilst there are still many uncertainties about how and in what ways this technology will form part of our lives in the future, these early glimpses are nevertheless an exciting preview of what this future might look like.
With that said, in this short article we will set out some of the general trends that will shape the future of cryptocurrency and the role it will fulfil in our lives.
Although there is often an almost exclusive focus on OKX Cryptocurrency prices in the industry news on a daily and weekly basis, this is arguably the least interesting aspect of the crypto world. And somewhat ironically, it is often the more ‘boring’ aspects of the development of cryptocurrencies that will have the biggest impact on what the future of the sector will look like.
One of these more ‘boring’ aspects is regulation.
Although cryptocurrencies like Bitcoin were originally brought into the world as an alternative or counterbalance to the conventional financial world, ultimately, if cryptocurrencies want to have wider acceptance in the global economy, they will need to work within it.
Regulation by mainstream financial regulators will inevitably need to be a part of this transition
However, rather than constituting a sacrifice of some of the original goals of cryptocurrencies,, formal regulation can be thought of as a vote of confidence, by the financial world, in the future of this technology. Having clear regulations in place would remove one of the major remaining obstacles for this technology and would give both investors and its users, greater confidence in it.
Mainstream Appeal And Institutional Adoption
Another trend we can expect to see more of in the future, is the much broader adoption of cryptocurrencies in the mainstream.
This will come in various forms, such as companies accepting cryptocurrency payments, as well as the emergence of Fintech companies that use cryptos.
We have already seen examples of this in the likes of AMC and Tesla – both of whom have made high-profile announcements regarding their acceptance of crypto payments – as well as in other players, such as PayPal and Square.
If these developments are anything to go by, we can expect to see even more, bigger, global corporations committing to adopting cryptocurrencies.
When this trend comes to fruition, it will mean that cryptocurrencies will be used in a wide variety of everyday transactions. It will also signal a broader shift away from holding cryptos such as Bitcoin and Ethereum as speculative investments towards real-world usage.
Moving Beyond Transactions
Whilst the future of the cryptocurrency world will likely mean we see an increased use of cryptos in everyday transactions, we are also likely to see a much broader array of uses for cryptos, beyond just a way to make payments.
In many respects, this has already been signalled by the rise of Decentralised Apps (Dapps), Decentralised Autonomous Organisations (DAOs), and Decentralised Finance (DeFi).
These technologies are part of a broader movement towards what is known as Web 3.0. This is a decentralised iteration of the internet which, by incorporating blockchain tech, will allow us to move away from the excessive centralisation we see online today.
Some of the defining characteristics of Web 3.0 will be decentralisation, greater user trust, greater connectivity, and transparency. It will also leverage other powerful technologies, such as Artificial Intelligence and Machine Learning.
What Does The Future Hold?
Whilst there are still a lot of unknowns about what exactly the future of cryptocurrency will look like, it is more than likely that the three trends identified here will play an important role in defining it. And if you are hoping to keep on top of all of the latest developments in the industry, you should pay close attention to developments in those areas. It is particularly important to look beyond the ups and downs of the daily price fluctuations and to instead focus on the technological developments and the innovations that are moving the sector forward.