10 years ago, Bitcoin made its entrance on the market as the very first cryptocurrency and it brought the blockchain technology with it. Today, the crypto market has vastly evolved and new technologies, as well as innovative ideas, have shaped the rise of cryptocurrencies.
Unfortunately, cryptocurrencies and their potential were overshadowed by exploitations and frauds. Due to the fact that there are no regulation or rules that will guide the market forward, as well as keep the users in check, the crypto market has experienced extreme volatility and uncertainty. It also resulted in people generally losing trust in the concept of cryptocurrencies.
Even blockchain technology development slowed down at one point. Now, people are wondering what will become of the trend that was rumored to be bigger than the Internet itself. With that in mind, here are a few ways how blockchain and cryptocurrencies are shaping up for the future.
Advancements in blockchain development
As mentioned before, blockchain development has slowed down at one point. However, it didn’t slow down because people lost interest in this particular technology. As a matter of fact, it slowed down because people were wondering and planning where best to implement this technology and how to best develop it so that they can utilize its fullest potential. Nowadays, blockchain is much more than the technology that supported Bitcoin.
Ranging from the Ethereum project that improved the original Bitcoin’s blockchain and introduced smart contracts all the way to global supply chain implementation, blockchain has come a long way in just a decade. The future predictions indicate blockchain technology to be used in app development, widespread distributed data models, autonomous trade and negotiations, improved security measures and much more.
Stablecoins to the rescue
It’s no secret that the cryptocurrency market wasn’t only plagued by high volatility. As a matter of fact, numerous frauds, hacks and scams also contributed to people losing their trust in the cryptocurrencies. This has resulted in the creation and rise of stablecoins.
Their purpose is to provide security and stability to not only the users, but also the market itself. Companies, such as Anchor AG have taken upon themselves to develop a stable coin that will help reduce the crypto market’s volatility and uncertainty, as well as protect investor holdings. All of that with the goal of encouraging people to place their trust in cryptocurrencies once again.
Unlike other cryptos on the market, stablecoins are pegged to assets in the real world, such as fiat money, precious metals, oil and other assets. With that in mind, the next big cryptocurrency that’s likely to surpass even the Bitcoins is most likely to be a stablecoin.
The future of cryptocurrencies
The entire purpose of cryptocurrencies was for them to be decentralized from any government or central bank regulations. In other words, cryptocurrencies were supposed to be everything fiat money isn’t.
However, the challenges that cryptocurrencies faced, such as the risk of losing assets due to the susceptibility to hacks and computer chases, lack of regulation, lack of widespread consumer acceptance and others, prevent them from becoming more widely used. Moreover, it also prevents them from becoming a part of the mainstream financial system. Fortunately, the future of cryptocurrencies is favorable, especially since new developments are focused on overcoming such limitations.
Some experts predict that government regulations are required to ensure stability and security even though that contradicts the fundamental purpose of cryptocurrencies. On the other hand, others predict that cryptocurrencies simply require a verified ETF (Exchange Traded Fund) that will allow cryptos to be floated on the Nasdaq stock exchange, as well as to make it easier for people to invest in crypto and to add credibility to blockchain technology.
Shaping up for the future
One of the things that are certain when blockchain and cryptocurrencies are involved is that the future is, in fact, uncertain. No one knows for sure what will happen but no one can deny the impact and the potential of both cryptos and blockchain technologies on the modern world either.
Even though there were setbacks, both crypto and blockchain aren’t about to be forgotten. The fact of the matter is that cryptos are being developed in a way that will satisfy the divergent criteria, which will allow them to be more widely spread and used.
They are becoming more mathematically complex to resist frauds and hack attempts, remaining decentralized but with proper safeguards and productions for users and they’re preserving a level of anonymity but without being used as means for tax evasion. On the other hand, blockchain is being used as a pioneer in revolutionizing modern technological systems. How things are going to develop further remains to be seen.
The future of both blockchain and cryptocurrencies is foggy at best. However, both of these trends have shown their potential and new technological advancements might carry these two into a whole new world of possibilities and opportunities.