Digital currency that is being created and managed by using the advanced technique of cryptography is known as cryptocurrency. In 2017 which was considered to be the best time for Bitcoin, investors poured in $6.2 Billion in the industry but that same year also saw many new currencies being launched and taking the center stage. Also, due to lot of new players in the market, cryptocurrency saw a decline and then this decline took the cryptocurrency into new innovation and product development.
When Bitcoin was launched in 2009, many thought that virtual reality to make money by keeping the identity secure same like cash transactions were possible. Many financial institutions felt the heat and got governments to bring in policies so that the rise of cryptocurrency doesn’t hit the share market of currency investors. Bitcoin started to take a big leap and sported a market value of $2 Billion at its peak but a decline of 50% thereafter sparked a debate in market about the future of cryptocurrency in general and Bitcoin in particular.
Many economists and market analysts believe that in the future crypto will have a big role to play and it is possible that cryptocurrency will be floated on NASDAQ. If this happens then the value for Blockchain technology and uses of crypto as an alternative to conventional currency will increase. The main issue with crypto is it is decentralized and not owned by an individual, every node in the network is taken as a repository and is updated by miners hence increasing insecurity of transactions. Many believe that crypto needs a verified exchange-traded fund for people to invest in crypto but there has to be demand.
The future outlook for crypto is the subject of much debate. While the financial media is proliferated by so-called crypto-evangelists, Harvard University Professor of Economics and Public Policy Kenneth Rogoff suggests that the “overwhelming sentiment” among crypto advocates is that the total “market capitalization of cryptocurrencies could explode over the next five years, rising to $5-10 [trillion].”
Crypto’s main benefits of transaction anonymity and decentralization have made it be used easily for illegal transactions and activity including money laundering, and drug peddling. With these issues, Financial Crimes Enforcement Network is tightening their noose around the crypto exchanges and are trying to push them to regulations. They went ahead and issued rules that defined administrators and virtual money exchange to bring them under service businesses so that they can be regulated within the ambit of government regulations.
Crypto that is trying to become the mainstream financial system has to satisfy a lot of criteria. It has to be mathematically complex ( to avoid frauds and attacks) but also easy for the customer to understand; has to have adequate consume safeguard and protection while also being decentralized; without being a conduit of tax evasion, nefarious activities will also have to preserve user identity. While this possibility looks remote, and are formidable criteria to satisfy it will be possible that most popular cryptocurrency in the coming time will have attributes that might fall in between today’s cryptocurrencies and heavily-regulated fiat currencies.