What will be the Future of Cryptocurrency?

Share On Facebook
share on Linkedin
Print

Cryptocurrencies are digital money that is formed and operated using advanced encryption technology called cryptography. With the advent of Bitcoin in 2009, cryptocurrencies have become a (virtual) reality from academic concepts. After that, Bitcoin has gained many fans, but in April 2013, it attracted a lot of consideration from investors and the media. In April 2013, it reached a record high of $266 per Bitcoin, and in the last two months, it swelled ten times. The market capitalization at the peak exceeded $2 billion. However, a 50% dive quickly after that excites a heated debate over the survival of bitcoin in particular and cryptocurrency in a broad sense.

©

Cryptocurrency Future Outlook

Cryptocurrencies would flick standard finance since perhaps one of the most appealing features is the capability of processing payments efficiently across boundaries with fewer prices, delays, or overseas cost volatility. With Bitcoin, 50 years is a long time to grow since it probably represents the world’s stock capital or the first AOL to execute many affluent people until it is replaced by advanced technology. The viability of bitcoin is a widely debated topic. The number of so-called crypto-missionaries has grown in the financial media.

Increasing Scrutiny

Bitcoin’s primary advantages are transparency and privacy, which have made it the coin of choice for various criminal enterprises such as financial fraud, narcotics trading, trafficking, and weapon acquisition. It has inspired the interest of powerful authorities and government organizations, including the Securities and Exchange Commission,  financial crimes enforcement network, and FBI is all part of the financial crime enforcement network and Homeland Security department. In 2013(March), FinCEN established guidelines that categorized cryptocurrency dealers and administrators as money remittance entities subject to federal regulation. Although the asset class’s historical volatility is “no cause for concern,” they have moderated their confidence. And that of crypto ministers about Bitcoin as digital gold with the title “lunatic,” stating its long-term power was “more liable to be $100 than $100,000”.

Alternatives to Bitcoin

Although from recent incidents, Bitcoin’s popularity and rising popularity since its inception have prompted various firms to establish competing cryptocurrencies, including such: Litecoin is a cryptocurrency. Litecoin, today’s most significant rival to Bitcoin, is designed to handle minor transactions more quickly. According to inventor Charles Lee, it is “a silver coin for Bitcoin gold,” according to inventor Charles Lee, who established it in  2011 October. In contrast to the high-powered processor power needed to mine bitcoin, Litecoin can be mined with a standard desktop computer. The highest limit for Bitcoin is 84 million, which is four times the 21 million restrictions, and it executes transactions in roughly 2.5 minutes, which is about a fifth of the time it takes Bitcoin. Investment in Bitcoin can prove to be a hedge against unemployment. The modern era will be the crypto genius.

Future of Cryptocurrency

A few of the current limits which cryptocurrencies face, like the risk that a person’s virtual wealth may be wiped away by a hard drive crash or that hackers could plunder virtual vaults, may be solved in time by technical breakthroughs. The basic paradoxes that bedevil cryptocurrencies are more complex to overcome the more popular they become and the more suitable they are to bring supervisory and government inspection, undermining the basic premise of their survival.

Whereas the number of buyers who trust virtual currencies has increased significantly, they are still a fraction. However, unless they are technically proficient, their full implications might be daunting for most individuals.

Cryptocurrencies that aspire to be the model of the traditional banking markets may fulfill a variety of parameters. It needs mathematical sophistication (to prevent deception and hacking). It is simple for users to grasp; decentralization but with appropriate consumer safety; and user request without becoming a channel for evading taxes, capital laundering, and other damaging behaviors. While that may seem a remote possibility, there is no doubt that the success (or lack) of Bitcoin in addressing the challenges it faces as the leading cryptocurrency could decide the future of other cryptocurrencies in the upcoming years.

Verdict

The growth of Bitcoin has prompted debates around it and similar cryptocurrencies’ fates. Notwithstanding its issues, Bitcoin’s success from its introduction in 2009 was fueled by the establishment of several cryptocurrencies, including the previously mentioned Ethereum, Ripple, and bitcoin. Cryptocurrencies that would like to be an overall economic system will have to meet extremely stringent requirements. While this may appear to be a far-fetched option, there is little doubt that Bitcoin’s success or failure in dealing with the difficulties it faces will impact the fate of other digital currencies in the coming years.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220705 13:45:09