Cryptocurrency has recently become an intriguing and hot topic, particularly after Bitcoin’s nosedive in the past two months. Though there are also many pros, this article will highlight some significant upcoming trends you want to jump in.
Growth of NFTs
Over the last two years, NFTs have experienced a drastic explosion and are yet to regain stability. Their popularity continues to surge as artists and other creators use them to mint more benefits from their crafts. Developers of the casino.online platforms, for instance, use them to drive the gaming economy.
NFTs use a decentralized funding option, enabling buyers and sellers to confirm the authenticity of a digital asset, thereby preventing infringement of copyright laws.
Besides the gaming industry, they are also famous in books, artwork, iconic sports moments, ticket events, memes, and virtual fashion.
With their value expected to reach over $122 Billion by 2028, NFTs will continue taking the crypto world by storm.
Regulation
Owing to their volatility and constant fluctuation, cryptocurrencies are at great risk of being regulated now, more than ever. Though few governments have legally recognized them, they continue to significantly impact the economy, having penetrated key sectors like health, entertainment, automotive, telecommunication, and financial services.
If left unregulated, cryptos will continue to swing the markets beyond the estimated parameters drastically, and this will only cause more adverse impacts.
With cryptocurrency being a key investment portfolio for many millennials, governments worldwide are creating laws to protect investors by creating a safe investment environment. However, the regulations may highly affect the prices.
Increased adoption of Crypto by corporates
Businesses are adopting Bitcoin and other digital currencies to conduct their operations. The space has welcomed well-known brands like Delloite, Apple, Microsoft, Google, and Disney.
From quality assurance to audits, supply chain management, security, and smart contract, the integration of cryptocurrencies in corporates promote efficiency and faster interactions, as will be the case with Microsoft’s Share Point.
Clean energy adoption
The world is rapidly focusing on environmental sustainability, and cryptocurrency is on the receiving end, owing to the amount of carbon dioxide produced in the minting process. Bitcoin, for instance, uses approximately ninety-eight terawatt-hours and produces ninety-five million tonnes of carbon dioxide annually.
With such high levels of carbon emissions, it is necessary to find more eco-friendly and sustainable solutions that will facilitate amicable co-existence between species.
More pressure on Bitcoin
With Bitcoin being the flagship for digital currencies, it is expected to remain under pressure, particularly after its poor performance this year, whose value declined by at least fifty percent in the last two months.
Despite having a rocky start at $29.000, persistence in the bullish market could push the value back to over $100000, which many investors and anticipating.
However, even with the accumulation and surpassing these goals, bigger expectations will always loom over the Crypto.
Adoption of CBDCs
Recent global events like inflation are likely to act as a catalyst, forcing governments to look for alternative currencies to salvage the situation. Countries like the Central African Republic and El Salvador are among the first countries to have adopted Bitcoin as a legal tender in a bid to reserve their currency.
Even with the need for alternatives, the fiat currency is unlikely to be faced out any time soon. In response, however, the Central Bank Digital Currencies are attracting huge popularity with technological advancements.
India, for instance, announced through its finance minister that the Reserve Bank of India would soon roll out its digital currency during the 2022-2023 Union Budget reading. CBDCs are more stable, liquid, and, therefore, more desirable than volatile cryptos.
