The crypto world has been on a rollercoaster ride over the past few years.
Cryptocurrencies have made some people millionaires and others billionaires. Yet many other investors are still trying to figure out what this new form of currency really is.
With so much talk about cryptocurrency in recent months, it’s no surprise that more and more people want to know: “What does the future hold for cryptocurrencies?”. In this article, you will find that out and much more.
So whenever you’re ready to dive deep into the crypto futures, keep reading.
What Is the Present State of Cryptocurrency?
The current state of cryptocurrency is undoubtedly exciting. The most popular and well-known crypto coins are Bitcoin, Etherium, Litecoin. There’s also Ripple, Dash, and Monero (from the highest market cap to the lowest).
Today this list has grown substantially, with hundreds of new altcoins entering the space in just a few years. However, as more cryptocurrencies enter the picture, it becomes difficult for investors to decide on one.
These currencies also range widely in terms of valuation. While some have reached high numbers, such as USD 124 billion (Bitcoin). Others like Dogecoin haven’t had quite so much success reaching the only USD 100 million total value mined.
Even though cryptocurrency had no utility in daily life, this is no longer true with its integration into many infrastructures. Cryptocurrency is currently used to help these industries thrive and grow. Some examples of industries that are adopting cryptocurrency include:
- Crowdfunding
- Real Estate
- Online Dating and Online Gambling (where the users can safely play)
There is still a lot to be seen as new cryptocurrencies emerge, but it’s safe to say that there will always be an appeal for crypto coins in some form or another.
With more adoption comes increased demand, which inevitably leads to higher prices and even greater investment potentials than we have already seen with Bitcoin this year alone!
Crypto Futures
Cryptocurrency is still very much in its infancy; it’s a space that has the potential to evolve into something huge.
Each cryptocurrency will have different futures based on its individual use cases. Still, everyone can agree that there will be some form of future for cryptocurrency as we know it today. The question really becomes: what will this future look like?
There are many possible answers, and while no one knows exactly what these answers might entail yet, here are a few possibilities:
- Merchant adoption
- Inclusion with other major currencies (i.e., USD) or fiat systems
- Genesis Mining creates more blockchain options for investors by mining new coins every day and distributing them equally across all miners
- Cryptocurrency futures and options
Regardless of what the future holds, cryptocurrency is here to stay. The best thing for anyone interested in investing or learning more about this space (or just curious) is to do your due diligence on each coin you’re considering as an investment so that you can make an educated decision based on facts instead of hype.
Furthermore, be sure to keep up with the latest cryptocurrency news so that you’re always aware of what’s happening in this dynamic space.
The Future Holds Security Improvements
One thing that many investors worry about is security. Bitcoin and other cryptocurrencies have been hacked before. One notable example being the infamous MtGox hack back in 2014, which resulted in a loss of USD 460 million worth of bitcoin.
Thankfully there has always been an active effort to improve cryptocurrency’s safety. We can see this through various updates such as Segwit (Segregated Witness).
This resolves transaction malleability, or when Ethereum had its DAO issues solved by implementing a hard fork. Security improvements will continue moving forward. This is true since breaches like these have happened multiple times already!
It only makes sense for the investment community to demand more assurance from developers. This is so they don’t lose their investments due to hacking again. Increased demand and possibility for these currencies come with improved security.
Cryptocurrencies still face many limitations. For instance, your digital fortune could be erased by a computer crash, or someone with bad intentions might take over the crypto vault from you. However, if these and other challenges are solved in time through technological advances (such as quantum computing), cryptocurrencies will become even more popular than they already have been to date.
The paradox of cryptocurrency is that no matter how successful it becomes–and hence regulated–the fundamental premise for its existence remains: anonymity!
The popularity of cryptocurrencies is on the rise, but they are still a long way from becoming mainstream. To succeed in attracting more people towards using these currencies instead of conventional ones, there needs to be widespread acceptance among consumers.
The relative complexity and unfamiliarity compared with traditional currency might deter many potential users except those who have a keen interest or knowledge about technology behind it all. For instance, there are a variety of crypto trading signals that one must learn before trading.
For a cryptocurrency to be successful and widely used, it needs to satisfy many criteria.
It must be mathematically complex enough so that there is little opportunity for fraud or attacks from hackers. It must be easy enough that consumers can understand how they work.
It should be decentralized with adequate consumer safeguards in place. It shouldn’t be vulnerable to being hacked by centralized authorities.
It should preserve the anonymity of users while also preventing tax evasion. It must do this without becoming a conduit for other nefarious activities like money laundering.
These contradictory requirements only occur if everyone involved has an incentive. Not to mention, some technical know-how!
The Utility of Stablecoins
Stablecoins peg and rely on a fiat currency. They have an algorithm that controls the supply of coins to prevent oversupply or under-supply.
Today’s most popular stable coin is Tether (USDT), pegged against the US dollar at USD 0.99 = one tether token ($USDT).
The benefit for investors is that they can buy crypto without worrying about its fluctuating prices. This is because it will always be equivalent in value no matter what happens on the market. So once again, there’s never any need to panic!
Stablecoin is highly beneficial for investors because its value never fluctuates. There’s no need to panic! Investors should take advantage of this option when purchasing crypto. They should avoid trying their luck by investing in speculation.
With cryptocurrencies becoming more mainstream, people will need a way to manage their investment risk. Stablecoins could be that answer.
This doesn’t mean they’re foolproof or without flaws. But what matters most is being aware of them to make an educated decision about it. You need to be clear on whether or not you want to partake in these types of investments:
- Jobs within cryptocurrency are difficult to find
- They’re tied to a fiat currency which could be devalued by the government and cause inflation
- They’re not as decentralized
- They’re reliant on a third party (the company behind the Stablecoin) which means they can be manipulated or shut down
Fortunately, many other types of cryptocurrencies aren’t pegged to fiat currencies. They don’t have these drawbacks. You should consider each before deciding what’s best for you!
If one thing is clear about cryptocurrency, it’s that Bitcoin has kicked off an ongoing revolution in how we store value. Flipping power from governments and financial institutions back over to people. This is done with new ways to earn money, buy products, send funds across borders, and more.
Should You Invest In Cryptocurrency?
Cryptocurrency is a new way to store value, and it has revolutionized the world of finance. There are also many benefits for investors. For instance, decentralization, independence, privacy, security, so there’s often no need to panic!
We’ve only just begun understanding how cryptocurrency will shape our future. But one certain thing is that innovation never stops. We’ll continue watching Bitcoin grow into something more than what was initially imagined.
Furthermore, investing in cryptocurrency is an educated decision. It should never be taken lightly.
It’s important to research all the options available. This is so you’re fully informed about what you can expect when investing in this new technology. This includes understanding both benefits and drawbacks of cryptocurrencies.
Investors need to remember that cryptocurrency is not without its flaws. Nonetheless, still has many advantages. In any case, continue watching Bitcoin grow into something more than originally imagined!
Reasons to Invest
Some of the reasons why someone would want to invest in crypto:
- Cryptocurrency is a new way to store value
- It’s decentralized and independent of governments or any other type of institution – meaning that the power is back with people!
- There are no transaction fees, high-interest rates, or hidden charges when investing in cryptocurrency.
- You can send funds across borders anywhere instantly for just pennies.
This helps keep transactions secure. This is because they’re not on the public blockchain network like Bitcoin transactions are.
You can also transfer crypto from your wallet to another person without using an exchange. This means you don’t need anyone else’s help if you want some privacy while transferring money.
It’s important to note that this doesn’t guarantee complete anonymity. It depends on how well the person has protected their private key and the type of wallet they’re using.
It’s also a secure way to store your money as one can’t hack it like with traditional banking institutions because cryptocurrency is decentralized instead of centralized. You don’t have to worry about someone having access to all your personal information while you’re storing it on an app or website, for example.
Reasons Not to Invest
Though Bitcoin isn’t regulated by any government agencies around the world. There are no restrictions imposed – this doesn’t mean they’re foolproof without flaws!
There are many drawbacks, including a lack of jobs within the industry. There’s also being tied (in some cases) to fiat currencies, which means they can be manipulated or shut down.
You’re exposed to a lot more risk when investing in crypto than what you would see if you put your money in an interest-bearing account with a bank.
It’s important to note that the process of investing in cryptocurrency is not always straightforward. There are many complexities involved! For example, it’s easy for someone who isn’t technologically savvy to get scammed when buying Bitcoins.
There have been several incidents of people who mistakenly sent their funds from Bitcoin wallets straight to scam websites. Thus, losing all their money without getting anything in return.
The lack of support staff willing and able to help those within the industry also poses another downside. This is because it leaves investors vulnerable and oftentimes without any means of recourse.
So even if you were lucky enough to get in at the right time, there are no guarantees as Bitcoin has been known not only to increase but decrease steadily over small periods of time (sometimes within a day!).
Crypto is also volatile and unpredictable. Hence, it’s hard to forecast what the future will hold for its value. For these reasons alone, some may choose to stay on the sidelines until they can do more research or feel confident about investing in cryptocurrency.
Crypto Made Easy
Crypto futures could be a way to bring some order and predictability into the crypto markets. This is done by offering standardized contracts that are credible.
It’s still unclear what will happen, but it will likely depend on how these new products are introduced in today’s market – so stay tuned for updates!
You can read more about fintech and crypto futures down below on our website.
