Crypto is arguably the most controversial topic in the financial industry. It is now available in different forms such as Bitcoin which was the first cryptocurrency to cause a stir globally. However, because of differing opinions from financial experts, it is unclear to many what the future holds for cryptocurrency. This article breaks down some factors to shed some light into the future of cryptos.
Cryptocurrencies at a Glance
- Currently, Bitcoin is the largest cryptocurrency by market capitalization. It has experienced exponential growth in its value since 2009.
- Reports reveal that the total market capitalization of crypto is estimated to be $211 billion.
- When it comes to retail participation, the number of users on different crypto exchange platforms is approximated to be more than 30 million.
- In terms of institutional participation, major financial service institutions have launched crypto products and services.
- Regarding crypto assets there are more 2000 cryptoassets including newer ones such as stablecoins.
- Venture capitalists investments stand at nearly $4 billion in blockchain and crypto currencies.
Institutions Will Be Involved More
In the recent past, the benefits of cryptocurrency have grabbed the attention of institutions. Traditional financial institutions have started adjusting their strategies with the increased demand for cryptos. For instance, U.S. Banks recently created a Bitcoin custody service that enables hedge funds to up their ante in digital currencies.
A larger pool of investments means enhanced potential for daily investors. But, more institutional involvement threatens the ability of digital currencies to operate outside traditional finance. One of the selling points for Cryptocurrencies was the desire to shake up the exclusive and institutionalized world of finance. It intended to come up with a widely accessible way for people to move money and pay for goods and services regardless of their circumstances.
But, by the year 2021, the future of Cryptocurrencies seems to have taken a strange turn. A few companies that can provide enormous computing power and electric power they require to mine at scale have now joined the mining network. As a result, it is becoming increasingly challenging for independent users to be involved. Moreover, the awareness that massive corporate investments can cause a price jump in a single day has cast further doubt on the democratic nature of the market. A great example is how Elan Musk’s Tesla investment in Bitcoin caused a jump of around 20% within 24 hours.
Cryptocurrency Gambling Is the Future of Online Casinos
It did not take long before the digital bet industry realized the potential of cryptocurrencies. The industry has adapted the use of cryptos such as Bitcoin, Ethereum and Litecoin. As a result, you will find many gamblers looking for a crypto casino because of the benefits it offers. For instance, it allows player anonymity; it is safe and secure and is more convenient compared to other payment methods.
Also, online casino operators regard Cryptocurrencies as the future of online transactions. Experts predict that online casinos will rely heavily on Cryptocurrencies in the future. This is a sensible observation because it is cheaper to process crypto transactions.
Crypto Regulation Has Widespread Support
Investors are keenly observing to see what the details of government oversight look like. At the same time, many investors agree that greater regulation could legitimize the emerging marketplace. This would allow more businesses to accept digital currencies and increase crypto value and security from fraud. Moreover, it will reduce criminal activity and volatility.
On the flip side, a significant number worry crypto regulation could limit its peer-to-peer nature which attracted many investors. They also believe the drawbacks of crypto regulation outweigh the benefits.
From Volatility to Anonymity
There is a thin line between wanting regulation and fearing loss of fundamental crypto character that would come with regulation. Regulation will offer cryptos stability and protection. However, cryptos have thrived from volatility to anonymity. At the same time currencies cannot operate without regulation especially when they reach the scale that crypto has reached.
There is a need to find a middle ground between regulating a lawless commodity and letting it build value. However, finding that balance is proving to be a tough assignment for governments, investors and coin exchanges.
In this sense, support for regulation is directed towards payment companies and exchanges, not governments. Many consumers welcome regulation because they are skeptical of industries allowed to self-regulate.
