Cryptocurrencies as an alternative to the traditional model of monetary exchange, have become increasingly popular over the years since their inception beginning with Bitcoin in 2009.
As the world keeps moving towards digitization on so many fronts, Bitcoin, Litecoin, Ethereum, and so many others, have seized the initiative and swept their way into the world. And this trend is not likely to slow down any time soon. Today, there are an estimated 2000 different forms of cryptocurrencies being used around the world.
However, this does not in any way take away the fact that cryptocurrency as a concept still has a long way to go in finally gaining universal acceptance. There are many hurdles to cross in various spheres.
There is the issue of credibility, safety, tax, investment prospects, and so many other areas to be improved on. Thus, we have decided to bring you 4 predictions as per the prospects of cryptocurrencies.
1. The Continuous Boom of Bitcoin
Bitcoin unarguably leads the way when it comes to cryptocurrencies at the moment and this does not look like changing in the nearest foreseeable future.
Digital currency started in 2009 and has gradually become popular ever since. It is estimated by many that Bitcoin would surpass as much as $30,000 in worth at the end of 2021.
2. Increased Acceptance
Acceptance has always been one of the major problems of cryptocurrency. This is chiefly due to a lack of understanding of how the sector works.
Thus, many people tend to still prefer the traditional model of monetary exchanges given that they are more familiar with it and its working principles look less daunting compared to this digitization concept.
And also, the fear that there are no measures put in place to ensure credibility, safety against cybercrimes, and tax issues are some of the reasons why it is still a work in progress, however, one with huge prospects.
All these issues are set to improve in the nearest future as many key stakeholders continue to embrace the idea regularly.
3. More Traditional Financial Institutions Taking Notice
It’s no surprise that financial institutions are beginning to take notice of cryptocurrency’s huge potential. This will even work more in their favor as they would be the catalyst to help build customer awareness, visibility and thereby, ease the way when it comes to understanding how this sector operates.
And if there would be a major transition to digitization (which is still a long shot at the moment), these institutions with foresight, who have already welcomed the idea would face no hardship in fine-tuning their methods to cope well.
4. Increase in Retail Investors
Purchasing any cryptocurrency such as Bitcoin has always been hard. But that is set to change as many agencies in different countries now provide services where these currencies can be exchanged for the usual conventional monetary exchange.
This has led to an increase in the number of people who have invested in the concept. And this trend is set to continue.
There is no doubt that cryptocurrency, as exciting as the concept is, will continue to gain more ground as time goes on, but if it would go on to shape the world on a larger scale, remains to be seen.