Currency exchanges have always existed in the history of mankind: gold replaced barter as the currency for transactions, banknotes replaced gold as a means of storing value, and cryptocurrencies are about to replace paper money. Each type of coin solves the problems of the previous generation of coins. Right now, cryptocurrencies offer a solution to the problem of unlimited money-printing and counterfeiting. But the big question is “What is the future of cryptocurrencies?”
Since the arrival of cryptocurrencies in 2009, many experts have identified them as a temporary phenomenon that will pass quickly. Years later, more than 6,000 different cryptocurrencies are known, starting with Bitcoin. With their success, cryptocurrencies have attracted many critics to their side, who initially rejected them. More and more companies accept payments with cryptocurrencies and there are even those that completely depend on this payment method.
The rapid growth of cryptocurrencies is what everyone points to as a Fintech trend in 2021. With the entry of PayPal and Square, Bitcoin has hit a record high and the issue has risen again. Why are major companies entering cryptocurrencies one after another? It is said that there is a key to the reorganization and revitalization of the global economy that was hit by the coronavirus. Therefore, we can affirm that cryptocurrencies will not disappear and their upward movement is not over yet.
What factors affect the future of cryptocurrencies?
Although there are trends in the economic world that suggest our transition to a crypto-oriented economy, the traditional scepticism of the people will serve as a major obstacle to overcome. However, it must be clear that the entire crypto society has the potential to change the way people save and sell. Additionally, there are factors that decisively influence cryptocurrencies to have a real future in the global economy
Where can cryptocurrencies be used?
At this point, most people still see cryptocurrencies as an investment. But spending on cryptocurrencies could become popular as these currencies gain confidence. There are online retailers, which accept cryptocurrencies. And of course, two people who value the tokens can exchange them for goods or services. For example, Bitcoin is becoming more and more common to use as a means of payment.
Among other things, it has been the case that some travel agencies, airlines and some online stores allow you to pay with cryptocurrencies such as Bitcoin. This is a sign that we may see the use of cryptocurrencies frequently in the future. There are also more and more opportunities to trade cryptocurrencies like Bitcoin online. You can use crypto exchanges if you want to trade cryptocurrencies.
With cryptocurrencies, you also make tuition payments, donations to charities, and payments for simple goods and services. There are many things that can be done with cryptocurrencies, after all, one of the first transactions with Bitcoin was buying a pizza. The tradition of using cryptocurrencies for everyday things has been one of the reasons for the creation of Bitcoin and the rest of cryptocurrencies.
Expectations from various cryptocurrencies
The growing interest from large companies may be one of the key factors leading to the development of cryptocurrencies. While cryptocurrency legislation is still in its infancy, significant strides have been made in recent years. Gradually, block payment systems will replace classic banking systems. There will also be different types of cryptocurrency projects (electronic exchanges, Internet of things, etc.).
Will they become another investment and support tool in the world of digital technologies?
On the one hand, the expectation, and on the other, a doubt that affects the perception of cryptocurrency as a future means of payment. What is the future of cryptocurrencies? While we are talking about price prospects rather than technology, the question is rhetorical. It is also unclear how to calculate the true value of cryptocurrencies, the economic impact of the investment will be difficult to be assessed.
For 10 years, cryptocurrencies have been on an incredible journey. It is very difficult to know what the future holds for us in the next 10 years. They will almost certainly prevail in the sectors where they are useful and provide real added value. When tasks are performed cheaply, quickly, automatically, without the ability to alter anything and create a system that cannot be attacked by hackers, then there will be no reason for us to continue using fallible technologies like the ones we use today.