There is a lot of speculation as to what the future will hold for cryptocurrencies.
Cryptocurrencies, including Bitcoin, have had a massive resurgence in the first half of 2021.
Bitcoin has had an incredible year and is now the most expensive bitcoin we've ever seen. Other cryptocurrencies have grown much faster than Bitcoin, such as Ethereum or Litecoin - making big steps forward this year.
And who can forget the Dogecoin 😅
Although this is a very young industry, it is constantly evolving. While it's difficult to guess where things will go in the long term, experts will be focusing on themes such as regulations and institutional adoption of crypto payments in the coming months.
Bitcoin's (and other Cryptocurrencies) Regulatory Environment Across Different Countries
There are many countries around the world that have different approaches to regulating Bitcoin.
The United States has a mixed approach to regulating Bitcoin. In the US, exchanging Bitcoin for other currencies is legal, however, trading or investing in it is not.
In Canada, there is a very relaxed approach to Bitcoin regulation. Canada does not tax Bitcoin like it would with other currencies and transactions of over $10,000 CAD need to be reported to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Countries like China, Japan, and India have been taking steps to regulate cryptocurrency trading and mining activities.
Countries like Sweden are taking a wait-and-see approach, whereas countries like China have taken a more stringent approach in regulating crypto - leading up to its ban on all crypto trading and ICOs.
There are both positives and negatives to having such mixed approaches in different countries across the world.
Possible Crypto ETF Approval for Trading
Following a top securities regulator's announcement that an approval path for an exchange-traded fund targeting bitcoin could exist, managers are planning to create the first bitcoin ETF in the US.
A number of companies have filed plans for bitcoin futures depository receipts over the past two weeks, including ProShares, Invesco, and Valkyrie Digital Assets. It would be similar to buying stocks if the funds were approved to make bets on the future value of Bitcoins.
Gary Gensler of the SEC said in August that he was open to ETFs trading on bitcoin futures rather than actual cryptocurrency, subject to stricter rules usually reserved for mutual funds. Recently, the first bitcoin-futures-based mutual fund started trading in the United States and has been approved by the SEC.
Futures allow traders to make bets on the direction of an underlying market, like crude oil, gold, or bitcoin in this case.
Broader Institutional Cryptocurrency Adoption
With cryptocurrency gaining more visibility in the mainstream, institutions are investing in cryptos. This will result in increased adoption of digital currency.
Institutions and individuals are adopting cryptocurrencies as a form of investment. It's possible to invest in Bitcoin and other cryptocurrencies without actually owning the currency. This means it is easy to speculate on the rising value of cryptocurrencies while minimizing risk.
This is a perfect example of the way institutions are beginning to adopt cryptocurrency. Yale University began offering students the opportunity to buy Bitcoin this semester to teach them about the ways cryptocurrencies could potentially affect their future. CME, which offers Bitcoin futures trading, is an example of an institution that has adopted cryptocurrency as a form of investment.
As crypto continues to grow in popularity, more and more companies are accepting Bitcoin payments. PayPal and Square have both announced that they will be incorporating Bitcoin into their payment system. Though Tesla continues to go back and forth on its acceptance of Bitcoin payments, the company has accepted BitPay as a form of payment for its Model S cars.
I don’t think people should be paying for things in bitcoins or other cryptocurrencies right now but it might become a thing in the future
At this point in time, it's not worth the investment to spend Bitcoin on goods or services, but if more institutions adopt Bitcoin, there will be more ways for everyday people to use it. That could increase the demand for bitcoins and cause their price to go up.
The Future of Cryptocurrencies (predictions about what will happen)
Cryptocurrencies have been around for a while and they are still going strong. One of the most popular cryptocurrencies, Bitcoin, has been around since 2009 and it has been surging in value since then.
Bitcoin is a good indicator of the crypto market in general because it’s the largest cryptocurrency by market cap and the rest of the market tends to follow its trends.
We can predict the future of cryptocurrencies by assessing the current trends in the market. It’s important to look at the coins that are on a steady rise and see if they will continue to grow in value. If they do, then this is a sign that they are worth investing in.
Here are some obvious predictions for cryptocurrencies:
1. The total cryptocurrency market cap will continue to increase;
2. Bitcoin will be surpassed by other cryptos as it is slower and more expensive than other coins;
3. More regulation will be put into place for cryptocurrencies as more people start investing in them;
Between the pandemic, the increasing digitization of services, and general mistrust in the status quo systems that largely underpin daily lives, the perfect storm for crypto adoption has manifested at last.
In the last five years, three major forces have played a role in pushing bitcoin and other cryptocurrencies to the forefront of people's minds. The first is the financial crisis of 2008, which showed that even when the government steps in to regulate finance, it can still be subject to collapse. The second has been the rapid rise of digitization in our daily lives. And third, has been a general distrust of established
Given the uncertain backdrop of the global pandemic, the case for cryptocurrency has never been more compelling. The pace of adoption, especially on the retail level, continues to reflect that very notion.
With the recent market volatility, it has become apparent that the case for cryptocurrency has never been more compelling.
Not speculation, but the use of cryptocurrency is what will make it valuable and mainstream.
