The Future Of Currency Is Here!
If they are going to become the de facto currency of the future, as many predict, cryptocurrencies like Bitcoin may have to try and be all things to all people. In the years to come, it will no longer be just an exciting new investment but a daily necessity. We take a peek into the future and discuss what cryptocurrencies will look like in the future.
The more popular cryptocurrencies become, the more interest it will attract from government agencies – who will try and regulate the currency.This of course goes against the whole idea of a decentralized currency, but we can only speculate how long the world’s governments will let currencies, that they have no control over and don’t benefit from in terms of tax revenue, remain an entirely user-regulated venture.
As it stands, cryptocurrencies are given value on a supply and demand basis. For example, Bitcoin is determined by how many units are available and how much people are willing to pay for these units. This means that the prices can fluctuate wildly as interest in them peaks and wanes. While this may be exciting for the adventurous investor or those who have no problem sitting on an investment until it yields results if it is going to be used as an actual every day currency this is a bit off putting.
For example, say you see a phone you’ve always wanted on sale for $50 worth of Bitcoin, you buy it and then immediately the value of bitcoin changes and and the phone you bought just a day ago now theoretically cost you $200. You probably wouldn’t take that risk. This makes it extremely unrealistic as a day to day currency. With a small amount of oversight and regulation, the cryptocurrencies could be stabilized to make it more suited to day to day transactions, thus allowing people to capitalize on the security and ease of using it without fearing constant, drastic fluctuation.
Will Cryptocurrencies disappear?
Despite what a few more pessimistic investors have to say Bitcoin and, Ethereum have definite staying power. Especially Ethereum with it’s incredibly sophisticated blockchain technology. The ways in which these currencies can be integrated into our daily lives are infinite, one day decentralised digital currencies could become a way the entire world to operate on a single currency, eliminating Foreign Exchange rates and making both travel and global trade far more simple.
Cryptocurrencies will change the way banks operate.
Whenever you withdraw money or swipe your card you are usually charged transaction fees. This can vary from bank to bank and country to country, but one thing is certain, people are tired of having to pay sometimes exorbitant fees to access their own money. Cryptocurrencies don’t have that problem, there are no transaction fees ort middle men to control your money for you. You are completely in charge of your own finances and have instant access to it. This will force banks to reevaluate the way they treat their customers. When they are no longer the only option they will be able to get away with a lot less.
New cryptocurrencies may take over.
In a few years Bitcoin could be replaced by a cryptocurrency that hasn’t even been invented yet. Many people find Ethereum to be an improvement on Bitcoin, and soon there may be a cryptocurrency that overtakes Ethereum as the most advanced and most hyped one out there.
In the next 5 years’ cryptocurrency most likely be the main currency for online transactions, and it is wise to invest now, but investing also means accepting that in order to flourish cryptocurrencies will have to change to be able to reach their full potential. If you strike now, while the iron is hot, you can still get on in the cryptocurrency boom while it’s still a steadily climbing asset.