The interest of ordinary people has grown significantly in cryptocurrencies all over the world, and half of this new financial market investors have declared that they would feel comfortable using crypto when paying for their groceries and services. Economic analysts predict that it’s possible for the cryptocurrency market to triple its total capitalization by 2030, given the rate of global crypto adoption, the trust that governments have in this sector, and the interest shown by institutional investors.
Unlike traditional financial markets, the history of crypto is quite small, so in order to imagine a future that belongs to this new technology class, we need to guide ourselves, keeping in mind the consumers’ and users’ needs and behavior. Whether we like the cryptocurrency space or not, it’s impossible not to recognize its tremendous size, proving even in the Bear Market that it’s a market that becomes stronger, it’s maturing, and it’s here to stay.
Cryptocurrency market regulations
Currently, cryptocurrencies are used as digital decentralized assets and methods of payment. Still, governments and regulators all over the world are trying to regulate this space and come up with ideas and theories that can apply to crypto. A form of regulation is important and required, especially for stablecoins, that, unfortunately, are not entirely backed 1:1 by actual US Dollars but have small differences.
After what happened with TerraUSD, it is more important than ever to see, prevent and work on the best possible scenario when it comes to people’s money. Also, the European Union has a list of cryptocurrencies in sight, which are included in the international Anti Money Laundering regulations – a list to which officials will add additional intentions and specifications during the coming months.
A greater global adoption
Bitcoin and other cryptocurrencies, such as Tether, are already an official payment method in several countries like The Central African Republic, El Salvador, and the Swiss city Lugano. At the same time, in many cities over the world that are crypto-friendly, it is possible to pay for goods and services with digital currencies. Prague, Vienna, and Lisbon are some of these crypto-friendly cities, and Portugal is recognized for its approach to this disruptive technology of decentralized finance.
Global adoption will grow by at least 10% over the next years, and several countries, like Panama and Uruguay, are considering adopting Bitcoin and other stablecoins. A tremendous impact also exists in Europe and other rich countries of the world that are planning to digitalize their own national currencies (such as USD and EUR). This move would also increase the citizens’ trust in classic currencies built on Blockchain, like BTC and ETH. We don’t know how easy it will be in the near future for everyone to order pizza from anywhere and pay using crypto. Still, surely Blockchain technology will infiltrate many aspects of our lives sooner than we expect.
Blockchain, used in various fields
The technology represents the transformation of the traditional system we’ve been used to, from affairs and businesses to personalized medical healthcare, education, agriculture, and other various applications we can imagine. Blockchain is also being researched by various governments and companies that want to innovate public and private services, changes that can be made together or separately from cryptocurrencies.
Together – because the growth of public sectors will increase the trust of public opinion towards cryptocurrencies, a sector that cannot be independent of Blockchain. And separately – because Blockchain, as a technology, can be used apart from digital assets due to the existence of several types of Blockchain that are malleable depending on peoples’ needs.
How will the industry develop over the coming years?
Most probably, crypto will go beyond what it consists of today – investments and decentralized finance – and will reach a whole new level. We know that regulations will continue to appear in this space – a factor that will transform the system into a hybrid one, bringing more safety to the market and probably placing a little pause on prices, which will not be as volatile as in the last cycles. Beyond how we will spend cryptocurrencies or keep our money in crypto, Blockchain will completely transform very fast because many projects work on how to solve existing problems, create solutions, and work on interoperability.
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