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THE FUTURE OF CRYPTOCURRENCY

Cryptocurrency has in many ways revolutionized the way transactions are made across the world. Bitcoin is the first cryptocurrency. This currency was the first real-life application of the blockchain technology. Satoshi Nakamoto conceptualized a peer-to-peer currency system based on the blockchain network, that would help to make transaction networks more efficient and faster. Since then a number of currencies have been introduced in the market that is improving on the existing technology.

Crypto Market at present

The crypto market has grown substantially since the introduction of Bitcoin. Newer currencies are introduced that have the potential to overcome issues in existing blockchain technology such as scalability, verification times.

Newer currencies like IOTA and NANO are based on a newer technology known as the directed acyclic graph (DAG) instead of the blockchain technology. This technology has the potential to overcome latency due to scalability issues of blockchain. Instead of the blockchain which are linear blocks of transactions, the DAG is like a tree where every transaction is in contiguity to multiple transactions like the branches of a tree. 

Crypto trading has gained a lot of popularity over time. Several new trading platforms and decentralized applications like Bitcoin Price trading have become easier. User-friendly interface and new trading functions like automated trading have made trading accessible to small as well as big investors. 

Blockchain technology has made transactions faster and more efficient. It is for this reason number of big corporates like Tesla, or other financial institutions such as PayPal or JP Morgan have made investments to make their transactions networks faster and more efficient. Prices go up and down depending on the market trends. Here are some of the predictions made regarding the future of cryptocurrency based on the current market trends.

Cryptocurrency Future Prediction

1. Crypto has the potential to replace legal tender- Cryptocurrencies are introduced in order to make transactions and the circulation of money faster and more efficient. Several companies like IBM have partnered with Stellar in order to make transactions faster. Since the peer-to-peer currency system does not have intermediate institutions like a bank that uses a traditional ledger system, transactions are much faster. Also for this reason transaction charges are quite low compared to that of existing financial institutions. Tesla had recently invested a staggering sum of 1.5 billion on Bitcoin for the same reason. Cryptos due to their universal accessibility and global acceptance (except a few countries that have banned crypto usage) have the potential to replace legal tenders used by the traditional banking system.

2. Stablecoins may affect other digital currencies- Most of the cryptocurrencies like Bitcoin, Etheruem are volatile because their values are dependent on market trends which makes them non-stable in nature. This volatility has been seen multiple times when the value of Bitcoin has fallen drastically, disrupting the transaction networks. Stablecoins like Tether and TrueUSD are pegged to the value of the US dollars which make them less prone to drastic price fall. Tether, for this reason, is suitable for Mastercard and other big corporations and might affect the price of Bitcoin and other currencies.

3. Bitcoin can cross the 100,000 USD mark by the end of 2021- Bitcoin has made it to the news due to its bull run in the year 2017, where the price of a single Bitcoin rose from 5000 USD to a staggering 20,000 USD in a very short span. Recently at the beginning of the year 2021, Bitcoin went through another bull run where the value increased from 20,000 USD to around 64,000 USD after the investment by Tesla. However after Tesla sold all its assets and questioned the environmental impact of Bitcoin mining due to its exorbitant power consumption, the price dwindled to around 20,000 USD. 

Conclusion: The crypto market is highly speculative. The market trends are constantly changing due to several factors such as big investments, introductions of newer cryptos, external factors. These predictions are subject to such changes as it is impossible to make accurate market predictions at any given point in time. 

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