Once an outcast in mainstream economy, crypto is now almost approaching the mainstream in glory and splendor. In fact, according to some analysts, crypto has already forayed into the mainstream. A legendary bank is now developing its own Bitcoin funds. An esteemed traditional payment system platform has started using crypto to pay online merchants. Another heritage bank has officially declared that crypto would replace fiat in the coming 10 years. So, what does it say about the crypto future? Visit multibank
Now, of course, you can’t deny the catastrophic effects of the recent May 2022 crash that plummeted the market cap of the industry from $3 trillion (2021) to a devastatingly lower $949 billion. Increase in crypt scams is also raising alarm; the crypto industry lost a whopping $14 billion in scam attacks last year. On top of that, the extreme volatility aspect of crypto is preventing many new investors from joining the crypto bandwagon- especially after the crypto crash in May 2022. So, is it all doom for the crypto future ahead?
Is it all the grim for crypto?
Well, there are always two sides of a coin. On one hand, you have the May 2022 crash that has raised serious concerns about the crypto future of crypto. But on the bright side, this is not the first time that the crypto has encountered a crash. The industry has been through multiple winters and bear market in the past and after every time, it has emerged only stronger. Had it not been the case, the crypto scape wouldn’t have been able to achieve the patronage of esteemed traditional financial institutions.
According to crypto evangelists, the crypto future is not all gloom and grim. Rather, they have emphasized on the key factors that will propel further growth for the crypto industry in near future.
Factors that are driving crypto growth
Much to the relief of crypto enthusiasts, the crypto future is poised for proliferating growth ahead. Below is a list of factors that are accelerating the boom.
However, before getting into the factors, here is a brief on the stats and figures that speak of a bright crypto future.
Key facts about future of crypto
- Crypto market has been forecasted to grow by 5x in 2030-2031
- Compared to 82.6 million users in 2022, crypto future is predicted to pull in around 3.5 billion users in 2030
- 84% institutional investors are confident about crypto future in mainstream economy
- Crypto industry received a whopping $127 million inflow from institutional investment in early months of 2022
- US crypto user base is expected to see a 19% surge by the end of 2022 from last year
Provision of faster and cheaper transaction globally
Cryptocurrency resolves a major problem that’s experienced with traditional fiat currency- higher transactional cost especially with international payment. Another problem faced with fiat transactions is sloth processing speed. Cryptocurrency assures much faster, almost near-instant cross-border transactions, and that too at a way lower cost. This particular factor single-handedly reinforces a bright crypto future ahead.
Presence of crypto is getting more relevant with each passing year as businesses are aspiring to expand globally. Faster and more affordable international transactions will do wonders for a business looking forward to foraying into foreign markets. It would be especially beneficial for SMBs who are usually lean on capital.
The aspect of privacy
Unlike fiat currency that operates under a centralized structure, cryptocurrency follows a completely decentralized approach. The absence of centralized control helps to facilitate direct P2P transactions and elimination of intermediaries. This cutting-edge system not only assures faster and cheaper transactions but also increased privacy for users.
The privacy quotient is one of the major factors behind increasing adoption of cryptocurrency and promising crypto future ahead.
Cryptocurrency adoption is growing by leaps and bounds. According to a leading crypto exchange, there will be a colossal volume of 1 billion BTC users by 2032. The booming nature of an industry usually speaks for accelerating rise and the same can be said about crypto future.
A whopping number of 15,000+ businesses are accepting crypto payments today and a huge bunch among them are some of the best blue chip companies. Small and medium scale businesses are also adopting cryptocurrency in large numbers, thereby showing positive signs for the crypto future.
According to some analysts, cryptocurrency shows the potential to be the chief payment mode for electronic payments especially for retail and eCommerce industries. Increased importance in real-time use cases certainly speak of high potential for crypto future.
Widespread adoption across diverse industries
You will know a concept shows promise if it can garner increased attention and adoption from diverse industries. Today, crypto is no longer limited to the finance or tech industries. Rather, you will find rising crypto use in many other industries as well, such as travel, hospitality, home furnishing, food and beverage, fashion, and more.
Do you need more proof why crypto enthusiasts are hopeful of a promising crypto future? Well, we haven’t finished yet.
Acceptance from governments
Bitcoin has already received legal tender from two countries. More countries are contemplating in the same line. The status of “legal tender” is certainly a landmark move in the crypto scene and only strengthens the crypto future ahead.
This is to stress here that a lot of countries that had banned or outlawed crypto in the past are revisiting their stance on digital assets. India would make a good case here. Although India had banned crypto completely in the past, the Indian government is having second thoughts now. Crypto is still not legal in India but not banned anymore. This is another positive use case that speaks of a potential crypto future.
The US government has also declared that it’s not going to put a ban on cryptocurrency- rather their growing participation in the industry only signals a boom for the crypto future.
Significance of regulation
Keeping aside all the game-changing benefits of crypto, it can’t be denied that the crypto future suffers from a terrible glitch- extreme volatility. Put simply, the crypto future is poised to possibly witness some degree of regulation.
Governments across the world and financial institutions are in talks about introducing some degree of regulation in the crypto sphere to secure the crypto future. The approach towards stability is definitely a welcome move but regulators should be conscious about not taking any major step that might dampen the decentralization aspect of crypto.