The cryptocurrency market can not boast of stability and balance, but it is the only investment tool that can multiply investments in tens of thousands of times in just a few years. “Bitcoin-fever 2017” attracted public attention to the industry. If only a couple of years ago only very few people knew about cryptocurrencies, now it is difficult to find a person who has never heard the word Bitcoin in his/her life. However, the general euphoria did not last long, and the whole market turned red right after the Christmas holidays. More experienced investors expected correction, but few people could imagine that it would last for such a long time. And now (the end of June, 2018) when the market is almost at an annual minimum (capitalization fell from $814 to $233 billion), everyone is interested in the question: what is the future of cryptocurrency? In this article we will try to turn off emotions and analyze what is waiting for us in the short and long term.
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Is Bitcoin a certain industry standard? The overwhelming majority of investors are interested in the fate of the world’s #1 coin. Bitcoin has grown from $0.001 to $20k, now it is staying in the trading range between $5800 and $6200. If you compare it with the historical maximum, then rate of the coin is showing negative dynamics, but if you look at the situation in the perspective of a longer period of time, it becomes obvious that the asset is liquidated and is showing stable growth.
If we talk about the future of the world’s #1 cryptocurrency, then it is certainly very promising. At this point in time, any knowledgeable person knows for sure the vector of technology development for the next 10 years. Let’s operate with facts:
– World leaders discussed the rapid development of cryptocurrency at the G20 summit in 2018 and concluded that the point of no return had already been passed, and it was impossible to ban the industry, it needed to be regulated within the framework of the legislative field.
– Exactly one year ago Bitcoin cost about $2500, and the market capitalization was slightly more than $100 billion. Considering the almost half-year correction (with a little respite), the current figures are 2.5 times higher. This means that we see an increase by 250% on the annual chart.
– In 2017 Stanford University conducted a large-scale study of cryptocurrency, where the approximate number of Bitcoin wallets was calculated. Their number was from 5 to 11 million pieces. According to the authors of the study, the figures are not exact, but even if we multiply their maximum statement by 3, we will get about 33 million people who have done some operations with cryptocurrency at least once in their life. If we consider that the total population of the planet is 7 billion people, it becomes obvious that even an overestimated figure of 33 million seems insignificant. These figures let us understand that the globalization of the cryptocurrency industry is still in the future. The growth of new users will inevitably lead to an increase in the rate.
– The project Ripple is already cooperating with more than 100 banks around the world, thereby simplifying and improving their work (improving the level of security and speed of transactions, as well as reducing commission significantly).
Experts predict a different fate for it, from complete collapse to recognition as an only world currency. Let’s find out which opinion is closer to the truth and whether Bitcoin and other coins have a future.
John McAfee, perhaps the most ardent cryptocurrency adept, who is 1000% sure that Bitcoin will become the new world standard. He assures that BTC will outshine the dollar, as well as the latter outshone gold. According to his forecast, the Bitcoin rate will be at least $1 million by the December of 2020. He is so confident in his prediction that he agreed to eat a piece of himself if he is wrong. We think you guessed which part of the body we are talking about.
In order for such a fantastic forecast to come true, the coin must be recognized at the international level, and trillion investment rivers must flow into it. According to McAfee, this is quite realistic, since it does not require the unanimous consent of all countries of the world, G7 will be enough. The rest of the countries will be forced to adjust to the leaders which they depend on economically.
If this happens, Bitcoin will start to be used everywhere, just like dollar today. Why should Bitcoin lead an expedition to world technology digitization? Everything is simple, the industry pioneer has many similar characteristics with gold:
- limited stocks (emission of 21 million coins);
- the process of mining is gradually becoming more complicated;
- significant energy costs for extraction.
All of these factors above exclude the inflation of the coin, which many other cryptocurrencies are subject to.
James Altucher is a private investor and a hedge fund manager. He believes that cryptocurrencies have all prospects to deprive the state central banks of the money issuance monopoly. If you remember, this right was taken from the telephone industry by the Internet in the past.
Altucher believes that the national currency of a certain country may fail in the nearest future, and the government will not have a choice but switching over to digital coins. The main applicants for this are Argentina and Venezuela. It surprising, but the Venezuelan government announced its intention to release the national coin El Petro literally a week after the statement of Altucher came out.
Elena Kvochko, the head of the security department at Barclays, believes that cryptocurrency has a future only if it enters the white legislative field. Bills on the regulation of cryptocurrencies in different countries differ, but, in general, 2018 gets the title of the “regulation” year. There is still a lot of work to do, but if everything is done correctly, it will significantly affect the industry.
The cryptocurrency industry will undoubtedly develop and doubting this statement is stupid for a variety of the abovementioned reasons. It is not yet clear what coin will become the leader in the next few years, many people are betting on the current favorite – BTC. However, it can not be denied that there are many other more technological, but less popular coins. They have all the chances to make it to the leaders’ list.
Money and traditional banks will not disappear anywhere in the next 5 years, the introduction of digital payment systems into everyday life will be gradual.
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