Bitcoin and other cryptocurrencies have been making the news again after a recent crash down from all-time highs. It’s gotten experts talking about what the short-term and long-term trends we’re going to see in cryptocurrency are and how major plays like governments and organizations are guiding them.
More Defined Crypto Regulations
Bitcoin and other cryptocurrencies have long enjoyed, or suffered from, a lack of coherent and effective regulation. This had allowed many uses to thrive, including the not so recent time when Bitcoin was seen as solely a payment method for online criminals.
Now, with tighter regulations from financial regulators in many countries, Bitcoin and other cryptocurrencies are starting to be seen as more legitimate payment methods, investments, and more. This opens the doors to further adoption by larger organizations and businesses that can’t afford the risks of using semi-regulated cryptocurrencies
In the UK, for example, recent measures have put cryptocurrencies under the jurisdiction of the Financial Conduct Authority. This adds a clear route for action against organizations or persons who use cryptocurrencies for criminal activities or fail to meet standards for tax reporting and anti-money laundering laws. Many other countries are following suit, and it appears that this number will only increase as we move into the future.
Competition From Governments and Banks
Big banks have long been one of the primary detractors of cryptocurrencies. This makes sense, as any wide adoption of cryptocurrencies cuts into the financial exchange systems that are their business. They are changing their tune, though, and many are leaning into cryptocurrency rather than shying away from it.
One of the frontrunners in terms of developing official cryptocurrencies is China. There, the state cryptocurrency renminbi is already in circulation in limited amounts. Unfortunately, this development shows the darkest parts of what cryptocurrency may become in the future. In this case, China retains full control, not the citizens.
The cryptocurrency was given out to a group of 100,000 residents but came with a catch. The currency disappears after a set amount of time. In theory, this is to ensure that disbursements recirculate into the economy instead of being hoarded. In practice, it demonstrates that state cryptocurrencies could be used to exert control over the livelihoods of citizens, removing even physical cash as a means for evasion.
Ongoing Volatility Into the Future
Bitcoin has long been known for its volatility, and some experts believed that recent mainstream acceptance would level that out a bit. However, the last year or so has shown that this isn’t the case, with more manic rises and crashes in classic Bitcoin style. Many experts believe now that this volatility will continue for some time, although they’ve been wrong before.
Continued volatility for the foreseeable future has a number of implications for the effective use of cryptocurrencies. It makes them a popular investment, but it restricts their viability as a currency. It would be hard to imagine an employee being paid in a currency that could be double or half of its current value a week later.
Increased Use by Mainstream Companies
Mainstream acceptance of Bitcoin by both companies and a broader audience of individual users has been on the rise for years. Among the most significant adoptions came in March 2021, when PayPal added support for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Users are able to purchase, hold, and sell these cryptocurrencies through PayPal.
Integration with the largest online payment processor in the world is a huge step for the use of cryptocurrencies in everyday transactions. Now, consumers no longer have to go through an intermediary cryptocurrency exchange to make most purchases. Instead, they can handle it all through the very same payment processor they’ve been using for years.
The Rise of Cryptocurrency Related Scams
Cryptocurrencies such as Bitcoin and Ethereum have gained a bad reputation in certain circles. This is because virtual currencies have become the “go-to” currency among criminals and fraud rings that at times use get-rich-quick schemes such as Quantum AI to bait their victims. However, the same can be said about criminals using FIAT currencies such as dollars, pounds, or Euros. At the end of the day, its up to every-one to conduct proper research before investing. We did, and found a website named Scam Crypto Robots which explains why this trading platform should be avoided.
Cryptocurrencies From Existing Tech Companies
Most cryptocurrencies available today have been made by small start-ups, and the oldest cryptocurrencies were created by enthusiasts who certainly couldn’t have predicted where they would be today. However, with more mainstream acceptance, established companies are statin to throw their hats into the ring.
Being an established company gives these cryptocurrencies access to an already established audience and integration with whatever services the company already offers. Facebook, Walmart, Amazon, and more are all in various stages of looking into and developing their own cryptocurrencies. Between this and the other trends, it seems like the cryptocurrency landscape might be in for some radical changes.
