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When Bitcoin, the first digital currency to be created, was introduced to the public back in 2009, no one could have predicted how this story would unfold or anticipated the extent of the phenomenon that was put into motion at the time. In fact, most expert forecasts didn’t even come close to the realities of today – it was generally believed that Bitcoin was nothing more than a scam, a Ponzi scheme, or, at best, a feeble attempt at financial innovation that was destined to fade away into obscurity sooner or later. None of these scenarios proved to be true.
A little over a decade later, Bitcoin and the entire host of altcoins that emerged in its wake not only proved their value and legitimacy, but they also seem to be enjoying more popularity than ever before. Although the crypto market has gone through numerous challenges and regular cycles of rise and decline, the prevalence of digital currencies has grown steadily over the years. They have come to play an increasingly important role in the global financial system and impact our lives in ways that we couldn’t even imagine in the beginning.
Pair this little story with the already proverbial crypto volatility, and you can easily understand why most crypto predictions never translate into reality and why some have stopped prophesizing on the topic. But if you think this would deter people from making assumptions about the future of cryptocurrency, you’d be wrong. Guessing what the crypto landscape will look like years from now is still a favorite game to play.
However, most have learned the lesson and are now less inclined to jump to dramatic conclusions, adopting a more realistic perspective instead. So, we’ve taken a close look at the crypto scene and gathered a few predictions that actually sound like they might have a chance of coming true.
The metaverse remains a mirage
Everyone is talking about the birth of the metaverse these days, but few understand what this hype is about or where it’s coming from. Most people are just following the crowd, happy to partake in the hot topic of the moment. It’s difficult to concentrate such a complex concept in just a few words, but the tl;dr version would be that the metaverse is the next possible iteration of the internet that will blur the lines between the physical and virtual worlds, creating an immersive environment where everything is seamlessly connected, and people can interact freely with technology and machines. Blockchain technology, the same that underpins digital currencies, would support this futuristic realm.
For anyone who’s ever read a sci-fi book or watched a movie in the genre, it’s clear that the metaverse is not a new notion. But is it something that can really happen in the near future, or just a utopian scenario? It’s possible that a version of the metaverse will materialize at some point in the future, but it’s highly unlikely it will be able to provide the level of immersion that some expect due to technological challenges that are yet to be solved. It would take major scientific breakthroughs for it to happen, and we don’t see any of that on the horizon.
Cryptos will finally make it into the mainstream
Getting back to more palpable realities, crypto’s adoption into the mainstream falls into question. We’ve all seen the cryptocurrency market grow over the years. We’ve also seen that many businesses, financial institutions, and even governments have integrated crypto functionalities into their systems recently. Looking at these achievements, some concluded that digital assets have gone mainstream, and they’re even on par with fiat money. They’re not, but they could be.
It’s true that digital assets have been gaining a lot of ground lately, and their acceptance is increasing. That can easily be evidenced by looking at Bitcoin’s price evolution or checking Ethereum price USD on exchange platforms. But let’s not forget that China banned all cryptocurrency transactions in 2021, which caused the market to drop. Not everyone is on the same page regarding cryptos just yet, but it’s likely they will be in the future. That’s because digital assets have already proven their utility as a means of payment and store of value, so the next logical step is for crypto to be recognized as a unit of account and finally take its place in mainstream finance.
Only the best will thrive
The chances of crypto going mainstream are pretty high, but that doesn’t apply to all digital currencies. According to recent statistics, there are over 10,000 crypto projects in existence at the moment, and it’s more than obvious that not all of them are created equal. Some offer no real value, and others have been stagnant for a very long period of time or can’t even be traded, so each crypto project will evolve differently.
Time will sift through the thousands of digital currencies available today, and only the strongest will prevail. We’ll probably see some of the top coins disappear and others rise in their place. It’s difficult to say which ones will stay and which ones will go, but the one thing we can guess is that the hierarchy is going to look dramatically different in the future.
Regulations will create disparate crypto landscapes
Given that decentralization is one of the main features of crypto, their universality has never been questioned. However, that doesn’t mean they’re going to continue to exist in a digital Wild West forever. Several countries are already discussing the possibility of introducing a regulatory framework for crypto on their territory, and some have even taken action in this respect.
It’s clear that most governments will impose crypto regulations sooner or later, and that will lead to a fragmented crypto environment. With digital assets being governed by different laws in each geographical area, it’s going to be very interesting to see how this will impact local financial systems.
We won’t be placing any bets on how digital assets are going to evolve in the years to come, as the future remains highly uncertain. But if any of the above-mentioned scenarios do come true, remember we’ve told you so.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect those of Geek Vibes Nation. This article is for educational purposes only.
Caroline is doing her graduation in IT from the University of South California but keens to work as a freelance blogger. She loves to write on the latest information about IoT, technology, and business. She has innovative ideas and shares her experience with her readers.