Cryptocurrency is a decentralized digital currency/ token that works on blockchain technology, having anonymity with the person to person trading anywhere regardless of borders. It is a fast, secure, and efficient technique with its pros and cons.
Cryptocurrency works on blockchain technology. It is a structure built on itself. The transactions are being recorded in blocks, verified, and can’t be erased or rewritten. This complex technical process forms a digital ledger of cryptocurrency transactions, ensuring complete transparency, which is hard for hackers to tamper.
Cryptocurrency has become a global sensation with the evolving digital money market, but there is still a lot to explore with the concerns and worries swirling around. For example, according to an estimation, only 15% percent of the population own cryptocurrencies like Etherum or Bitcoin.
Bitcoin is the most popular cryptocurrency to gain immense profits and may determine the success in cryptocurrency worldwide, with other cryptos coming into the competitive field. Many cryptocurrencies exchanges like Binance, Coinbase, Wazirx, Birmart, etc., have been catering to 100+ cryptocurrencies, where trading has been done in billions each day.
Future of Cryptocurrency
The future of cryptocurrency is essentially dependent on technological advancement. Technology can help minimize or curb the loss of crypto portfolios due to computer crashes that wipe out important information, including the crypto wallet.
Additionally, technological advancement will help in providing a more secure platform, thus protecting crypto wallets from hackers who can wipe all your holding within a few moments’ notice. Finally, making a more innovative and user-friendly interface of crypto exchange will be helpful to make it accessible to everyone.
Cryptocurrency is likely to impact business transactions. For example, Elon Musk had made quite a name in headlines by investing $1.5 billion into bitcoin for Tesla and being a leader of the meme coin Dogecoin. Recently Tesla has announced that bitcoin can help purchase their vehicles. In addition, Paypal, a pioneer in providing digital transactions, has rolled out special features letting you buy and make transactions using cryptos like Ethereum, Bitcoin, Litecoin, etc.
Blockchain technology is used in cryptocurrencies and fintech, medical industries, and the insurance sector; gaining more acceptance implies the technology will solve more day-to-day life problems.
To get into the technological world, governments themselves have started minting their cryptocurrency, and many regulations have come from many countries to give cryptocurrency more legitimacy as a currency that can be used by individuals and business persons for day-to-day transactions.
The main component of having a cryptocurrency is its security. Cryptocurrency operates on the blockchain, which is profoundly secured and cannot be hacked as it is open-source, providing you information about each transaction done. The only way cryptocurrency can be hacked is by companies in its ecosystem having high vulnerability in their site, and their security features are outdated.
According to Frederick Kaufman, the author of “The Money Plot: A History of Currency’s Power to Enchant, Control, and Manipulate.”
“Before the year 2071, the dollar will have common representation with crypto compared to gold or silver. Therefore, it is unnecessary to doubt the longevity of encrypted algorithms as the medium of exchange and stores of value the drive to invest in tokens will only accelerate soon.
Cryptocurrency’s futures predictions by some people suggest that the coins will forever change the way we deal with money while others warn of a dangerous bubble. Whatever a person forecasts about cryptocurrency, it will be harder to imagine a future without cryptocurrency.
According to certified financial planner Ivory Johnson, cryptocurrencies are likely to destroy traditional finance because of their ability to efficiently transfer payment anywhere across borders without charging fees or getting slight delays or foreign currency fluctuations. According to him, 50 years from now, you will see bitcoin becoming the world reserve currency or next AOL, making many people rich until and unless unseated by advanced and better technology.
According to the vice president of behavioral finance and investing at Betterment, Dan Egan. Cryptocurrencies such as bitcoin have been proven helpful in speculative purposes and money movement across borders; hence it’s unlikely to disappear. But it is worth considering how the demand of growing cryptocurrencies will be viewed by state factors, who view it as a competitor to fiat money, and how it will add to the black market commodity.
According to Raghuram Rajan, cryptos have a potential future even if they have fluctuating values. So it is because these currencies or digital assets can make an effective means of payment. However, appropriate regulation will be beneficial in the future.
Cryptocurrencies’ future is still a big question. Proponents believe in the limitless potential this token can create while the critics are still doubting its risk factors. However, there is a massive potential in making cross-border transactions with minimum to no fee charge. Cryptocurrencies have to aspire to become a part of the mainstream financial system to gain widespread acceptance among customers. Additionally, it should work on providing adequate consumer safeguards and protection. Bitcoin’s success in determining its challenges will choose the fortune of cryptocurrencies in the coming years.