The cryptocurrency space is becoming a game-changer, disrupting what we knew about money, investing and finances. However, the future of cryptocurrency does not rest solely on bitcoin. While bitcoin is the pioneer cryptocurrency, there is more to blockchain technology than bitcoin.
Does this mean bitcoin is not as important?
Of course not.
Bitcoin is still as important as it was in 2008 when Satoshi Nakamoto invented this verifiable digital asset.
However, the conversation among many of the ‘uninitiated’ in the cryptocurrency space has been on bitcoin, how it is a store of value and how volatile it is. Those in the traditional financial space also have strong skepticism about cryptocurrency because they feel the technology is unsustainable, that the lack of regulations leaves all involved at a high risk of getting burned, and burned hard!
They are right…to an extent.
So, what is the future of bitcoin?
The future of cryptocurrency is far more than just holding some bitcoin – or altcoins. Blockchain technology, which is the technology on which cryptocurrency is built, offers more to the world.
THE MATURE DIGITAL ASSETS INDUSTRY IS COMING
Digital assets utility goes way beyond just being able to use it as a store of value. The range of solutions that blockchain technology offers include medical, financial, entertainment, lifestyle, and many more. Crypto’s future is bright, and it involves a myriad of solutions to problems.
For one, the speed of carrying out financial transactions on bitcoin blockchain technology is fast, less stressful and has incredibly low transaction fees compared to the traditional methods.
Technology has always been a propellant in the financial space. Looking through the timelines of innovations in the financial space, it is easy to see how much technology has shaped how we use and see the money.
A quick rundown through recent history.
In the early 1950s, credit cards were used to make payments. Internet sales also started in 1994 with payment giants PayPal founded in 1998.
The influence of technology in the future of finance can’t be overemphasized. So, it is only common sense that blockchain and digital assets rule the finance of the future, a future being shaped by web 3.0.
A mature digital assets industry takes into cognizance the volatility of digital assets and works with some level of regulations.
We are beginning to see more involvement of the government in the cryptocurrency space. First, they know the future of money and investment is in cryptocurrency, so they want some level of stability. Second, the fear of having this future slip past them with no gains to the government coffers has prompted more involvement.
For example, following the hack against a major cryptocurrency exchange, Mt. Gox (there are lots of cryptocurrency exchanges such as Redot.com that learned from Mt.Gox’s hack and have implemented secure systems against users assets), the Japanese government, in 2016, enacted some regulations on digital assets.
As the cryptocurrency space continues to grow, with the help of platforms, the interest of regulators will continue to increase.
The reason isn’t far-fetched.
The success of any financial institution and the asset class is safety, protection and some level of predictability. With these factors, investors feel safe thereby leading more doubters into the space.
However, safety, predictability and protection are the three features that cryptocurrency doesn’t have.
The lack of safety has led more governments worldwide to find ways to have laws that provide a level playing field for all in the cryptocurrency space. The definition of a level playing field, though, can be misleading sometimes. But a level playing field is one where the rules of one financial asset, say Stock, isn’t so different from that of another asset, say bitcoin.
The commissioner for Commodity Futures Trading Commission (CFTC), Dan Berkovitz, in his displeasure for an unregulated cryptocurrency futures market remarked that it is unfair to have a regulated and unregulated market side by side.
The future of cryptocurrency and digital assets, as we have seen since the spark of NFTs and other innovative projects built on Ethereum, Algorand and other platforms, rests with what the investors, developers and users want.
THE INDUSTRY IS BIGGER THAN ONE TOKEN
The faster people who are unknowledgeable about cryptocurrency, bitcoin, blockchain technology and digital assets understand that there is more to digital assets than just bitcoin, the better for cryptocurrency’s adoption and growth.
One of the first places to start changing this perception that blockchain technology is all about bitcoin is the type of language we use.
Yes, cryptocurrency is a new asset. Yes, we don’t want the traditional crypto lingo such as FUSD, HODL to go, but we also need to start incorporating the language of traditional financial institutions into the cryptocurrency space. Language change will bring more people in, educating them on the immense benefits blockchain technology holds for not just finance but in every part of life.
Also, the growth of assets such as USDT, BAT, AUDUS, shows that people gravitate towards projects that offer solutions to problems. Tokens such as Trial, Gistcoin and BAT are typical examples of innovative solutions being the driver of a token’s success.
Blockchain can be used to solve problems, ranging from keeping medical records to safeguarding people’s financial data, to rewarding creators who engage with content.
SO, WHAT DOES THE FUTURE LOOK LIKE?
The future of bitcoin – and by extension cryptocurrency – lies in some form of regulation.
I know that sounds spooky.
Please hold on!
The future of digital assets will need more people involved, more stability, more protection. While cryptocurrency and digital assets have grown this far without any form of government regulation, there is still a need for some form of system, one that doesn’t leave investors and traders at the mercy of high volatility.
Agreed, the cryptocurrency and blockchain space has made so many people millionaires, still, we can’t rely on the high volatility for too long. If we do, there is a high possibility that the rich and powerful will manipulate the system and leave many in a shark-infested financial sea.
A system that allows for more people on the table, one that is open to the diversity of solutions on this new technology is what we all should be embracing. Cryptocurrency, blockchain technology is here to stay; we need to make them more accessible to all and sundry. Redot being a digital asset exchange offers traders a safe and financially sound environment for trading and exchange.
