Crypto has, like the rest of the world’s financial markets, had a tough couple of months. All of the largest coins have dropped significantly down from their all-time highs and several of the smaller coins have had extremely rocky price developments. The overall extremely happy sentiment that was prevalent just a year ago has more or less subsided for more realistic approaches and somewhat pessimistic analysis.
Nobody knows for certain what the future of crypto holds, but there are a couple of things that are in the works as this text is being written. Crypto is reaching a higher level of adoption week after week and today it’s possible to order food or place bets on the nfl week 8 odds. In this text, we’re going to provide you with a brief summary of what we might expect in the crypto space moving forward, and what needs to happen for crypto to continue to grow.
Higher levels of adoption is key
Crypto branching into the mainstream and getting more and more usage is absolutely vital for the continued success of crypto. Much of the hype around cryptocurrencies is the belief that they might be used for all manner of transactions in the future. Therefore it’s very important that crypto starts to see more implementation amongst companies as a method of payment. The arrival of bigger companies on the scene will also help to get more people interested in the possibilities that crypto can open up.
At the minute, cryptocurrency has some legitimate uses but the main driving force behind its price action is speculation amongst investors. People buy Ethereum or Bitcoin hoping to be able to sell it for more in the future. Unlike stocks, which have an intrinsic value that is easy to measure, the value of cryptocurrency is based on what other investors are willing to pay for a token. Having more uses will therefore inevitably give way to higher prices.
Is regulation coming?
When Bitcoin was first launched by the developer (whoever they might have been) it made it very clear that Bitcoin was an experiment to see if a currency without oversight from the government was feasible at all. Now almost 13 years later we have our answer. What was once only discussed on obscure web forums for people with an extreme interest in cryptography has gone mainstream. Crypto exchanges sponsor big arenas, run their ads on television and plaster their names on the side of Formula 1 cars, all without the government having any oversight into the workings of the currencies they host.
But this might be about to change. There have been rumblings in the US congress for quite some time about how to treat crypto, and after some high-profile cases of cryptocurrencies becoming insolvent in days, the government might be ready to step in and regulate them. This would most likely work in the same way that stocks and securities are regulated today. Some say that this is exactly what crypto needs, while others mean that this would kill the entire point of crypto altogether.
Blockchain is here to stay
But while the future of crypto might be murky, the technology that powers it is still seeing massive expansion. More and more uses for blockchain outside of the crypto space are being found every day. The ability to send information in a safe and secure way where it’s not possible for it to be tampered with is absolutely paramount in some fields. Blockchain has an extremely bright future ahead of it, and new strides are being taken all the time.