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Future of Cryptocurrency in 2023 and beyond

TLDR

  • The future of Cryptocurrency according to crypto preachers, is bright and crypto-averse people think that it is just a bubble that will burst someday.
  • cryptocurrencies are clearly one of the most significant technological disruptions in recent history.

Related: Global Energy Consumption from Bitcoin Mining Is Just Over 0.10%

Future of Cryptocurrency

Cryptocurrencies, the newest class of digital assets, are clearly one of the most significant technological disruptions in recent history. It appears that blockchain technology-based currency is about to obsolete fiat currency. The U.S. central bank also launched its digital currency mainly because people are not interested in fiat currencies. Over the last seven years, the marketcap of the top 100 coins has risen from around $5.2 billion to nearly $1.7 trillion as of January 2022 and it is expected to grow back further in 2023 and beyond.

Future of Cryptocurrency
Crypto Marketcap: TradingView

According to crypto preachers, the future of cryptocurrency assets is bright and crypto-averse people think that it is just a bubble that will burst someday.

According to analysts, the global cryptocurrency market will triple by 2030.

cryptocurrency

Cryptocurrencies are now the fourth most popular investment type among investors, trailing only stocks, mutual funds, and bonds. Bitcoin alone has a market capitalization that ranks among the top ten largest companies in the S&P 500. In addition to this, the german bank published a financial research report known as Imagine 2030. It states that in the next decade decentralized money will rule the market. The Securities and Exchange Commission (SEC) and other U.S. market regulators are taking the crypto market seriously.

However, it is also important to consider the Future of Cryptocurrency and what it holds for everyone.

crypto, cryptocurrency

Experts predict that 2022 will be a slow year following the massive growth of 2021. People’s interest in cryptocurrency has more than doubled in the last year.

Interestingly, digital currency is no longer just a topic for investors; it has also made its way into popular culture, with many celebrities associating themselves with digital currency assets.

crypto, cryptocurrency

In comparison to 2018, older consumers have begun to invest in cryptocurrency at much faster rates. In the United States, consumers over the age of 35 account for nearly half (47%) of those who plan to invest in cryptocurrency in the next six months.

For many of these current and potential investors, cryptocurrency provides a new way to manage their finances, and many also find that the financial freedom of cryptocurrency has liberated them from the rigidity of traditional banking.

Understanding the potential future of cryptocurrencies may aid in preparing for changes in the decentralized ecosystem over the next 5 or 10 years.

Predictions for the Future of Crypto currencies

The evolution of cryptocurrencies is clearly one of the most important events in modern history. Since the introduction of Bitcoin, people have been wary of cryptocurrencies.

However, times have changed, and people are becoming more interested in crypto-based solutions. The current state of cryptocurrencies provides solid foundations for uplifting the Future of Cryptocurrency predictions. On the other hand, the volatility of cryptocurrencies makes forecasting their future difficult.

Some long-term predictions in the decentralized space are unrealistic and express a positive outlook on the Cryptocurrency’s future like bitcoin. At the same time, it is essential to look for critical aspects that might also define the cryptocurrency’s future scope. Similarly, there are a few other important trends for cryptocurrencies in 2022.

future of crypto in 2023
TradingView Bitcoin Target

At the same time, the realization that massive corporate investments, such as the one by Tesla that caused the price of bitcoin to rise 20% in a single day, cast further doubt on the market’s democratic nature.

Here is a summary of some of the most prominent forecasts for the future of cryptocurrencies in 2022, 2023, and beyond.

Cryptocurrency Regulation

Questions about uncertainty in the bitcoin landscape frequently revolve around concerns about bitcoin regulations. Even if lawmakers have not taken any active measures to address the issue, it is impossible to deny the importance of regulations in the Future of Cryptocurrency particularly bitcoin in the next five years.

All you can find is a great deal of discussion about cryptocurrency regulations. On the other hand, the gradual evolution of bitcoin regulations cannot be denied. For example, US officials have been focusing some of their attention on stablecoin regulations. Lawmakers around the world are attempting to establish adequate precedents for bitcoin regulations in order to ensure investor safety.

Regulations are the most significant disadvantage in the bitcoin industry, and the longer they are delayed, the more bitcoin users are put at risk. Investors are likely to have a better assurance of the safety of their cryptocurrencies in the absence of stricter regulations. Long-term cryptocurrency predictions in terms of regulations, on the other hand, can be quite ambiguous.

 The perceptions of cryptocurrencies in different jurisdictions pose critical challenges to establishing global bitcoin regulations. Some countries, for example, tax cryptocurrency transactions, while others outright prohibit them. As a result, it is clear that crypto regulations would remove one of the major impediments to cryptocurrency growth. Future of Cryptocurrency can not be decided by a single country.

  • Implications of Crypto Regulations

The statements about cryptocurrency being the next big thing in technology are heavily influenced by their utility and how people perceive them. The impact of crypto regulations on investors and the future of cryptocurrencies would be significant.

U.S President Biden’s $1.2 trillion bipartisan infrastructure package includes crypto tax reporting initiatives that could improve citizen tracing for crypto activity. New crypto tax rules in the U.S may allow crypto investors to report their cryptocurrency transactions. New initiatives, such as the introduction of 1099-B tax forms with cost basis information, could help to alleviate the problems associated with crypto tax filing. U.s has the best policies regarding digital currencies. That’s why people in the U.S. are more aware of this technology as compared to the rest of the world.

Regulations can also have an impact on cryptocurrency prices in volatile markets, which can influence the cryptocurrency’s future scope. In the event of regulatory changes, market volatility can follow any trend. Crypto regulations, on the other hand, would only increase trust in crypto, thereby increasing confidence in crypto assets.

Acceptance of Crypto ETF

Crypto ETF has emerged as one of the standouts among cryptocurrency forecasts for 2022 and beyond. The most significant development in this trend is the introduction of the first Bitcoin ETF on the New York Stock Exchange in October 2021.

In recent years, one of the significant highlights of the crypto ETF approval is the availability of a new and traditional approach to crypto investments. Investors can buy cryptocurrency directly from traditional investment brokerages by using the BITO Bitcoin ETF. Simply put, crypto ETFs pave the way for crypto to be integrated into mainstream finance.

  • Implications of Crypto ETF

When a new development presents unique challenges, it is critical to seek appropriate solutions. As a result, concerns about the legitimacy of crypto ETFs can play an important role in shaping them for greater adoption. BITO, on the other hand, demonstrated significant trading volume in the first few weeks.

Simultaneously, increasing the accessibility of crypto assets in traditional investment products can aid in enabling crypto adoption. The implications of a crypto ETF for the future of cryptocurrency would also indicate how users can add crypto to their portfolios directly from a brokerage. Keep in mind that this brokerage is the same one you use for a traditional investment account or a retirement account.

If they are successful in integrating cryptocurrencies into mainstream finance, crypto ETFs will be a game changer in the Future of Cryptocurrency.

Institutional Adoption Rises

Long-term cryptocurrency predictions frequently refer to institutional adoption as the most significant highlight. Mainstream companies from various industries have been putting their efforts and interest into cryptocurrency and blockchain. AMC, for example, is one of the big names that has announced its intention to accept cryptocurrency payments by the end of 2022. PayPal and Square are two other notable examples. The future of cryptocurrency in 2023 and beyond is bright as SEC and other institutions worldwide are putting in collective efforts to make it accessible. The Future of Cryptocurrency, with respect to other assets like NFTs, DeFi, GameFi, and Metaverse, is even brighter as tech giants are already getting into it.

Digital payment companies are laying the groundwork for proving that cryptocurrency is the next big thing. How? Both have enabled cryptocurrency payments on their platforms. At the same time, it is worth noting how Tesla, a household name in innovation, took the initiative of accepting Bitcoin payments before abandoning its promise. Even if Tesla did not keep its promise, the company still has billions of dollars in cryptocurrency assets.

One of the primary factors driving institutional adoption of cryptocurrencies is the enormous interest in crypto. For the time being, the future of cryptocurrency is dependent on how large and global corporations handle crypto adoption. The involvement of larger institutions can help improve trust and confidence.

  • Implications of Institutional Crypto Adoption for Investors

The only thing preventing cryptocurrencies from being used in mainstream financial applications such as everyday payments is a lack of visibility. On the other hand, the future scope of cryptocurrency may change as major retailers accept crypto payments.

Although the dynamics of how volatile cryptocurrencies can serve institutional use cases are still being researched, crypto users’ everyday value benefits may improve in the future of Cryptocurrency. With the massive scale of adoption, you may also notice improved price stability in cryptocurrencies.

It is critical to consider how real use cases of cryptocurrency in the real world can increase its value and demand.

Why cryptocurrency could be the future of money

In a best-case scenario for 2023 and beyond, regulators from around the world could agree on a global framework for cryptocurrency regulation. However, that appears unlikely today, given that international attitudes toward cryptocurrency range from “Bitcoin is an official currency” in El Salvador and the Central African Republic to “Crypto transactions are illegal” in China. In the short term, a global agreement on the issue appears unlikely. This is sufficient evidence that cryptocurrency is the future of money.

What is the future of cryptocurrency in 2030?

Crypto regulations are developing on a government level. To steer cryptocurrency regulation, the Biden administration has assembled a highly qualified team. The future of Cryptocurrency globally can be different as countries individually have a different approach to it and that is the reason why the Future of Cryptocurrency could be brighter in Latin America than the Future of Cryptocurrency in India or China. 

Over the next few years, the processes will percolate through the crypto market. Investors could not stand uncertainty, so even an overly strict regulatory framework is likely to be preferable to the current state of affairs.

Is digital currencies the answer?

While regulators will shape the future of Cryptocurrency or digital currencies, brands will also have an impact, as many are entering the market to meet the needs of the growing crypto market that governments have so far ignored. This could be accomplished by making trades more comfortable and safe for “newbies,” or by providing education and resources to curious intenders.

Whatever the future holds for digital currencies, there is a lot of work to be done to balance the risks and rewards, and there is a lot of opportunity for the brands and individuals who take on the task.

Do you think the Future of Cryptocurrency is bright? Let us know in the comments. At the time of writing Bitcoin is struggling to pass the $20,000 resistance. What is the price at the time you are reading it? 

This too determines the Future of Cryptocurrency, doesn’t it?

More to read:

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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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