Cryptocurrency has continued to grow over the past few years, and it is set only to get bigger. From adoption to being implemented as an acceptable currency, saying the “sky’s the limit” would be an understatement.
From bitcoin trading to NFTs being part of your favorite games, here are a few things we can expect from cryptocurrencies in the future.
Adoption is one of the most popular concepts in cryptocurrency right now. Whether it be adoption in the form of more trading between people and companies or adoption in the sense that countries recognize crypto as a regular currency.
El Salvador recently announced cryptocurrencies would be an accepted form of payment across the country. While many other nations are far from this step, it is going to become increasingly more likely as the months and years tick on.
Even though cryptocurrency gets a bad rap sometimes, and there are often negative headlines and stories surrounding it, there are still millions of people investing in it every single day.
As bigger and better projects emerge, as the blockchain gets implemented into more systems, and as cryptocurrencies become more widely accepted, it is no surprise that more people than ever want to invest.
Crypto hasn’t taken over Africa as it has in other parts of the world. This is simply due to the lack of mass computers, smartphones, and internet access. South Africa and Nigeria are the two countries that have seen the most crypto growth.
However, with recent app developments and the internet becoming more accessible than ever, crypto will surely see another huge spike when it begins to spread across the African continent.
Regulation is a very hot topic amongst crypto investors and enthusiasts, but it is a double-edged sword. Many people first flocked to crypto because of the lack of regulation and oversight; there wasn’t a big, greedy corporation deciding the value of your hard-earned money.
The problem with little to no oversight and regulation is that a lot of illegal activity has sprung up; people being defrauded, rug pulls being common, etc. Regulation is needed to stop these illegal activities from happening.
How regulation would be implemented is still up for debate, but at this point, it seems like a necessity as fraud-based crime and scams in the crypto world are becoming far too frequent and easy.
Impact of Tax
With regulation and adoption, tax will be the next big talking point. Crypto is currently not taxed the same way fiat currency is taxed; this is partly why it is so appealing; you can keep so much of your profit to yourself.
Once again, how tax will be implemented and charged is still up in the air, but crypto is currently treated like shares in some countries, and therefore that idea could expand elsewhere.
DeFi, or decentralized finance, is one of the biggest and most exciting ideas in crypto right now. Using the blockchain, people could send and receive money faster than ever, with much lower transfer and handling fees.
Using automated machines and software, transactions can be done quickly and without any third-party interference.
While cryptocurrencies are still highly popular and traded every second, they are hard to predict and can be incredibly unstable. This is a turn-off to some businesses and companies as the value of any crypto changes regularly.
To combat this, many businesses are starting to create their own tokens that can be used to buy their products; these tokens can be regulated by the company; therefore, the value should remain steady.
Right now, NFTs have a very bad reputation. They are viewed as a way for the wealthy to store their money, and many are seen as cash grabs rather than real investments, and rightly so in some cases.
For NFTs to survive, many believe gaming is the right path for them. Developers are looking into turning the digital assets within their games, such as skins and rare items, into NFTs. This allows the in-game assets to hold real value and to be bought and sold between players.