Here’s What Cryptocurrencies Will Look Like in 50 Years :
There are lots of pros and cons, worries and concerns but, unquestionably, it is a new subject which should be studied.
Here’s What Cryptocurrencies Will Look Like in 50 Years
Cryptocurrency has been growing rapidly during the last decade, though there are lots of things to find or discover, it has captured its market. There are lots of pros and cons, worries and concerns but, unquestionably, it is a new subject which should be studied.
People who support this system claim that it is a trustless system which means it is not controlled by any particular government or agencies so it has its world and a lot of space to spread or develop. But researchers told us that this concept is not correct. In the real case, Crypto Currencies are not trustless.
Bitcoin, for example, is still reliant on the underlying infrastructure that is mostly located in China. So before coming to the future of cryptocurrency, let's have a look at the most popular cryptocurrency which is Bitcoin.
Bitcoin is a decentralized electronic currency that uses peer to peer technology, which means that each node is connected, and because of these two features it is free from the manipulation of any government, but if we look to the other side then there is no centralized body which can control the flow of the currency and ensure that the system will run seamlessly.
It is generally created by the mining process, which requires powerful computers and with the help of that kind of computer, complex algorithms are solved, and as a result, the mining process is completed. If we have a look at the statistical data then we see that there is a rate of Currency creation is 25 Bitcoin every 10 minutes and the limit is 21 million which will be covered in 2040.
This quality makes Cryptocurrency special. If we compare it to the fiat currency then, fiat currencies are highly centralized and controlled by the government, and the central banks regulate the flow of money with a monitoring policy.
There are lots of theories about the future of Bitcoin or Cryptocurrency, but as institutional money enters the crypto market, some analysts predict big changes will occur. In addition, there is a possibility for crypto to be listed on Nasdaq, which would further cement blockchain's credibility as an alternative to traditional monetary systems.
Some believe all that crypto needs is an exchange-traded fund (ETF).5 An ETF would ease the investment process for Bitcoin, but a fund might not automatically generate the demand necessary for people to invest in Bitcoins.
According to Kenneth Rogoff, professor of economics and public policy at Harvard University, the consensus among crypto advocates is that cryptocurrency market capitalization will explode in the next five years, rising to $5-10 billion.
Somebody argued that cryptocurrency is physical gold but according to Rogoff, bitcoin has limited use, compared with physical gold. This makes it very vulnerable to a collapse similar to a bubble. Moreover, the cryptocurrency's energy-consuming verification process is less efficient than those that rely on a trusted central authority, such as a central bank.
The limitations presently faced by cryptocurrencies, such as the fact that a computer crash can wipe out one's digital fortune, or that a virtual vault can be hacked by a hacker, may be overcome through technological advancements in time. There will be greater difficulty in overcoming the basic paradox of cryptocurrencies - as their popularity increases, they will potentially become more regulated and scrutinized by the government, which undermines their very foundation.
Despite the increasing number of merchants accepting cryptocurrencies, they still represent a very small number of merchants. Before cryptocurrency is used by the mass market, it must first gain widespread consumer acceptance. Most people, except for those who are technologically adept, will likely avoid these currencies due to their relative complexity.
Cryptocurrencies that aim for mainstream adoption have to satisfy a wide range of requirements. This scenario appears remote, but there's no doubt that how Bitcoin handles its challenges may have a bearing on other cryptocurrencies in the future.
Edited By Team CLIQTAX
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