What does the future hold for cryptocurrencies?
The biggest trend in today’s times is cryptocurrency. It has, in fact, been a part of the culture for several years now.
Since the first big boom in the market, all people have been able to talk about are the different cryptos in the market and the impact that they are creating. Initially, only people in the financial sector swayed away and saw the potential that this asset held. Slowly, its grip grew and the world of crypto began to take over not only the economic areas but also big industries, TV and movie stars, icons of music, etc.
Regulations – The whole point of cryptos was that it was decentralized and not under the direct authority and control of a third party. Slowly, countries began to create and came up with certain regulations that would then govern the trading of this asset. Even cryptocurrency exchange in India became more streamlined as the government introduced taxes on the profits. Indian crypto traders are hopeful despite certain discrepancies and lack of clarity in the guidelines regarding the trade of cryptocurrencies. India has one of the fastest-growing markets and traders of crypto. The dramatic rate at which the trade has developed in our country is astounding as the experts predict India to play a huge role in the future of cryptocurrency.
Factors that influence cryptocurrencies – This asset is very nuanced and can be influenced by several factors. Some may be legitimate like pandemics or some might be simple rumors that may later turn out to be untrue.
Media and celebrities – Yes, cryptocurrencies by nature are volatile in themselves, however, they are also vulnerable to media coverage, portrayal, celebrity backing, influencer support, etc. The biggest example of this would be how the Dogecoin Price sees rapid and massive increases when Elon Musk tweets about it or mentions the coin in an interview. Musk also expressed his support for bitcoin and the prices for the same soared to 62,000 Indian crypto tradersdollars.
Economic trends – The price of cryptocurrencies is also influenced by the supply and demand that they create. Holding true, particularly for bitcoin, the future is said to expect a huge rise in the overall price of BTC as the supply of the total number of coins is limited and is reaching its end. Despite not having a hold and value in tangible assets, the future of cryptos is bright.
Crypto whales – Wallets or people who hold particular crypto in large quantities are called whales. Recent research has found that there are approximately 2500 wallets that hold 40 per cent of the crypto market. These owners have the power to move the crypto market significantly. In case these users decide to buy or sell their assets, it can cause a rise or dip in the prices.
Analyst predictions – Since the traction of the crypto market has taken the global economy by storm, analysts and financial experts have spent a lot of time trying to understand and predict the patterns of what the future of this asset would look like. Predictions state that the global crypto market will increase by more than triple by the year 2030. The overall valuation of this market would be close to 5 billion dollars.
This would mean that whether or not people have a direct stake in this asset, businesses, investors, brands, etc would not be able to ignore the high. Predictions have also been associated with increased growth of the profile of investors that are linked to this market. It is not just a niche hobby for people to engage in anymore. Everyday consumers have been benefiting from and using this asset class of investment to better their portfolios and gain more rewards.
Reasons for a bright future – The upside of investing in cryptocurrency is the attraction of institutions and financial sectors. These areas are rushing in to cater to the increased demand that this digital currency is seeking. The larger pool of investment also results in a greater potential for institutional adoption. A person virtually needs nothing to invest in a cryptocurrency apart from money and an internet connection. This desire to be a part of such a revolutionary concept is increasing not only in the youth but also among expert investors.
The future of cryptocurrency is predicted to see several rises in the graph. The popularity and benefits offered by Bitcoin and the other Altcoins have reached new heights and various sectors. This makes investment in cryptos a suitable prospect.
This story is provided by ATK to ANI. The Business Today will not be responsible in any way for the content of this article.