What are your Thoughts on the Future of Cryptocurrencies?
Cryptocurrencies’ increased popularity results from the shortcomings of the existing financial systems; in the aftermath of the financial crisis, we see an increasing interest in new ways of efficiently executing transactions, while ensuring high levels of transparency and accountability.
At the heart of cryptocurrencies is a rich history of innovation, disrupting the future of finance and the monetary system. The biggest driver is that the cost of financial transactions using cryptocurrencies is significantly lower than transaction costs in the traditional economy. There are numerous gains derived from cryptocurrency, aside from holding or buying cryptocurrency as trade deciding on which crypto coin to choose from can be really difficult, I will also recommend that you invest in service companies such as start crypto cashflow (www.startcryptocashflow.com) company, a cryptocurrency investment and mining company that gives a return on investments made in days by capitalizing on the volatility of the crypto market to generate profits giving you better chance in the cryptocurrency market.
The advent of cryptocurrencies will surely reshape the nature of currency competition, the architecture of the international monetary system, and the role of government-issued public money.
What does the future look like?
Success will mostly depend on 4 conditions: appropriate technology, consumer demand, corporate champions, and an amenable regulatory environment.
The adoption by a wider public and widespread acceptance by consumers as a viable form of money is a key point, which will mean overcoming the practical technical and regulatory challenges along with the lack of trust in issuing authorities and understanding how to use them. Their relative complexity compared to conventional currencies will likely deter most people, except for the technologically adept.
Cryptocurrencies are still seen as a highly speculative form of investment not suited for all individuals. Its future success (or lack thereof) will depend on the ability to deal with issues such as the fact that there is no central authority to ensure things will run smoothly or to back the value of bitcoin and other cryptocurrencies. Value fluctuation and volatility are the main challenges for the adoption in the digital payment industry. Many people fail to understand the real value of cryptocurrency because they’re only focused on speculative trading, driven by price and volatility. Moreover, some countries do not consider it legit, due to the lack of transparency, which raises the chances of tax evasion and money laundering.
A cryptocurrency that aspires to become part of the mainstream financial system may have to satisfy a quite formidable criterion: it will need to preserve user anonymity without being a conduit for tax evasion, or money laundering, be technically complex to avoid fraud and hacker attacks, but easy for consumers to understand, as well as be decentralized but with adequate consumer safeguards and protection. Quite a challenge.
Looking at the different sectors, in the future, trading, and e-commerce, and retail segments are expected to hold a major market share when it comes to cryptocurrencies. The penetration of digital currencies in digital payments is expected to affect cross-border transfers, and digital currencies have the potential to become the main vehicle for e-payment if not the only one. This will make digital payment services – powered by blockchain technology – the next great upheaval in global e-commerce growth. Financial institutions are also directed to blockchain technologies, which are expected to drive the market in the upcoming years. The financial ecosystem will likely undergo massive disruption.