How Will Cryptocurrency Look in the Future?
Most of you may have heard about cryptocurrencies. These are basically digital-based coins and are quite a few in variety. There are Bitcoins, Ripple, Monero, and Bitcoin Cash to name a few. To a layman, the cryptocurrency market, which primarily deals in the different types of digital-based coins, will seem scary, mysterious, and exciting at the same time. However, there are several experts who believe that soon there will be a time when these cryptocurrencies will replace national currencies and it will change the world deals with money.
By 2030 Cryptocurrencies Will Replace National Currencies
According to author and futurist Thomas Frey, cryptocurrencies are here to stay for sure. He has also predicted that by the year 2030, these cryptocurrencies will replace almost 25% of the national currencies. The simple reason being the high levels of efficiency of these digital-based coins. Dr. James Canton from the Institute for Global Futures is of the opinion that the rise of various types of cryptocurrencies in the last few years proves the legitimization of a new class of asset that emerges right along the traditionally used global economy. He has also gone ahead and said that new investment vehicles may come up due to the use of these digital-based coins.
It Will Be Nothing Like Cash
According to Canton, cryptocurrency is not an appropriate name. Since it is basically tied to a secure blockchain on the internet, it does not have the similar relationships to nations like any traditional currency. Thus, he likes to name it as the blockchain economy. Frey has also stated that Bitcoin is quite similar to selling real estate. Just like you change the ownership of real estate after selling it, similarly, selling any cryptocurrency will result in giving up on a discrete digital chunk to another person. However, these types of transactions are carried out in the cloud. Although Visa, along with several other companies, have made it much simpler for people to use Bitcoins for any regular transaction, it is still not possible for you to spend it at any supermarket.
The Value of the Crypto Will Be Cyclical
It is true that Bitcoin has taken a dip in recent times and there are several other types of cryptocurrencies that vie for the top position. However, that does not mean that these digital-based coins will soon crash and lose their existence. According to Canton, crypto investments will be just like traditional investments in various bonds and stocks that go through various cycles. It is true that there are more volatility in the world of crypto. This is why it is important to be very careful while experimenting with various investments.
Crypto Will Cause the Commerce to Change Drastically
Many experts are of the opinion that cryptocurrencies are major disruptors to the entire banking industry and this should be considered as a serious matter. Due to the lack of oversight and intermediaries in cryptocurrencies it makes it highly attractive for various investors, who can easily cut out the fees for financial advisors and banks.