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What’s next for digital currencies? Here’s what experts have to say about the future of crypto

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The whole world has fallen in love with cryptocurrencies over the past few years. What people once regarded as a rather strange or even downright ludicrous idea, has turned into a global phenomenon, and a reality that we can’t deny. Digital currencies have made their way into the mainstream and they’re not going anywhere. If anything, judging by their evolution, crypto popularity is only going to increase in the years to come.

If you think about it, what’s not to like about cryptocurrencies? They ensure easy transactions, accessibility, transparency, enhanced security, privacy, inflation protection, and create a more inclusive financial system. Digital currencies are all that and more, and as the crypto market continues to expand, so will the range of benefits it provides.

The crypto sphere is indeed innovative and exciting, and there are a plethora of other terms that we could use to describe it, but predictability is definitely not among them. Given that digital currencies are still in their infancy and they’ve undergone multiple transformations in a rather short period of time since they’ve been around, it’s quite difficult to accurately predict what’s going to happen to them in the future. This poses a big problem for investors, as they have limited possibilities to assess and minimize risks.

The best chance we have at figuring out what crypto land has in store for us is to listen to what experts have to say about it. And apparently, crypto specialists have a lot of opinions on the topic, so let’s see what conclusions we can draw from them.

Changes in the crypto regulatory landscape

Most cryptos rely on blockchain technology which is a decentralized ledger that records transactions across a peer-to-peer network. Therefore, decentralization lies at the core of cryptocurrencies, being one of the main reasons for their popularity. In a world where traditional currencies and assets are under the control of a central authority, be it government entities or financial institutions, cryptos are providing a very attractive alternative for both individual investors and organizations. Decentralization gives back control to the end-user, ensures independence and better decision-making, provides a trustless environment, and minimizes vulnerabilities.

However, what has been touted as crypto’s biggest strength can also be its biggest weakness. Decentralization makes it difficult for regulators to intervene and set clear rules in this space without affecting the very nature of digital currencies. Unfortunately, the lack of regulations makes the crypto landscape some sort of Wild West, leaving the door open to a plethora of threats and shortcomings that certainly don’t make investments in this area any more appealing. This is why, despite the strong opposition from many crypto enthusiasts, governments across the world are pushing for stricter regulations on digital currencies.  Authorities are trying to formulate rules and guidelines in this respect while maintaining crypto’s reputation and spirit intact.

This is clearly a very cumbersome endeavor, given that cryptos are treated differently in different parts of the world. The lack of legal consensus poses hurdles for local authorities, but such actions are encouraged by the numerous advantages they would bring. Experts believe that crypto regulatory frameworks could help tremendously, ensuring:

  • A less volatile market – the crypto market is known for its unpredictability and volatility, with sudden spikes and unexpected drops in asset price, which makes investors feel like they’re walking on quicksand. New regulations can reduce speculation and help investors ride market fluctuations more confidently.
  • Enhanced protection for investors – venturing into the crypto market offers very little protection for investors at the moment, as there are no laws in place to ensure the safety of their assets. Further regulations could minimize risks and make crypto investments a lot safer than they are right now.
  • A safer crypto environment – crypto is considered by many as a no man’s land, so when things happen to go wrong, there’s no authority that can intervene to restore peace and order. Regulatory frameworks can keep frauds, scams, and rug pull at bay, significantly reducing the risk of crypto crimes.

Wider crypto adoption

With the expansion of the crypto market, digital currencies have slowly but surely made their way into the mainstream. They’re no longer an asset exclusive to investors or those who have a deep passion for the field. The average individual can easily access and use cryptocurrencies for different purposes. Platforms like Binance give everyone the possibility to trade cryptocurrencies quickly and safely, whether they want to invest in Bitcoin, Ethereum, Dogecoin, or any other coin on the market and stay up to date with crypto prices.

This doesn’t mean, however, that digital assets have been accepted by the large players in the field. Government bodies and financial institutions have been reluctant to crypto adoption since the very beginning. And yet, recently the trend has shifted and these entities seem to have changed their perspective. El Salvador has accepted crypto as a legal tender and it appears that other countries, or at least major companies and organizations, may follow its example, a movement that might have been prompted by the advances in crypto regulation that we’ve previously mentioned.

A growing interest in NFTs

NFTs are considered the cool new kid on the crypto block. Although they emerged in 2014, they’ve only gained widespread popularity over the past couple of years. They’ve certainly managed to bring a bit of color to the crypto landscape, but their novelty is also an element of debate. While some say NFTs are just another fleeting fad, others believe they are here to stay and they might also bring considerable changes to the arts and entertainment world.

In recent months, the NFT craze seems to have calmed down a bit but interest remains high nevertheless. This might be an indication that NFTs, just like many other innovations and technologies throughout history, hold great potential that will be further explored in the years to come.

We can make assumptions and even place bets on the evolution of digital assets, but one thing is for sure: cryptos have already changed the world we live in and will continue to do so in the future.

 

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