Cryptocurrencies are already taking over. Think of it, they have become the talk of the day. They are covered everywhere from newspapers to the news, TV shows and even our everyday conversations. Think of world occurrences such as the presidential impeachment trial in the US earlier this year or the coronavirus that has caused anxiety and turmoil all over the world. Even pandemics like these seem unrelated to cryptocurrencies but somehow they have caused an increase in the price of Bitcoin and other cryptocurrencies. The main reason being that in times of despair and uncertainties, people tend to lean towards assets that can protect their wealth. This is just the beginning, there is no going back. So what are some of the possibilities that are in store for cryptocurrencies in this decade?
I’m not in any way claiming that I know what is going to happen for sure, I have based my predictions on the current affairs and on what experts are saying as well. I’ll start by saying that I think, we will see cryptocurrencies and other Blockchain applications spread to over 1 Billion individuals globally. Mass adoption is the future of most cryptocurrencies, this adoption is going to happen in emerging markets where financial systems are broken. A new crop of cryptocurrencies that are producing products people want is already emerging. By the end of the decade, most startups will have a crypto component just the same way most startups use the internet and the computer today. I can’t wait for the time when governments and other institutions will fully embrace the cryptocurrency space, because from where I see it they do not have much of a choice.
Decentralization is bound to grow
A crypto-to-crypto sphere is growing as more people adopt cryptocurrencies. Once you acquire yourself enough cryptocurrencies, you can enter a magical atmosphere of innovation that is purely crypto-to-crypto. In this magical world, we should expect a lot of new applications from new games, to online communities and even virtual worlds with their economies. Most of these applications will be regulated like software companies instead of financial services companies.
The pace of innovation is expected to accelerate dramatically and such innovations are going to be global rather than geographically restricted as is the case today. In this world, there will also be greater privacy considering the use of private coins and non-custodial wallets. Expect to see the rise of decentralized identities. Those identities are going to replace the current rating agencies with a more modern approach. With the growth of the crypto-economy, more people will be able to earn a living thus feeling a sense of empowerment.
There is going to be a rise in crypto startups
Just the same way that fintech startups have become quite common today, the new decade will have its trend which will encompass cryptocurrency. Remember the dot come craze that came with the invention of the internet? Now we are expecting a crypto-craze. Technology companies and even non-technical companies are already adopting several cryptocurrency uses. Soon, each tech startup will have some sort of cryptocurrency component.
If you are wondering what a crypto startup is, it is a company that is defined by the following characteristics. First, it will raise money using crypto; secondly, it will use cryptocurrencies to achieve market fit by issuing tokens to early adopters of the product. And lastly, it will unite global communities and marketplaces in a way that most companies do not. Of course, these startups are bound to experience hundreds of challenges just like any other startups.
I find it very impressive and interesting that millions of people who get exposure to cryptocurrencies do not set out looking for this information. Some experience it trying to play a game, or reading a random piece, or trying to earn a living through writing blogs, or just using a decentralized social network. Cryptocurrencies are becoming a necessity that is impossible to escape.
The Market structure is going to mature
Most of the cryptocurrency exchanges we know today started as brokerages, custodians, exchanges and clearing houses all rolled into one. In the 2020s we should expect the cryptocurrency structure to evolve in such a way that it will resemble the traditional financial world, regulated by relevant bodies. To some extent, this is already happening; take a look at a company such as Coinbase Custody, it has a separate company with its board regulated as a NY Trust Company.
Like in the traditional financial services world, customers of one product will be the competitors of another and cross-pollination will be quite common. Once this market is in place, I foresee SEC getting more comfortable with a cryptocurrency index fund for retail investors.
A transition from trading to utility
Cryptocurrency investments in the 2010s were dominated by speculations. Trading drove most of the activities and the best business models as well. This trend is going to cross over to the 2020s however, cryptocurrency companies will be driven by the desire to derive utility rather than just trade. I foresee companies using cryptocurrencies for non-trading purposes. This trend is already taking off with more customers doing non-trading activities such as commerce, earning, debit cards, borrowing, lending and staking as well.
Adoption of cryptocurrencies in emerging markets
Other than an expected increase in cryptocurrency startups, an increase in the adoption of cryptocurrencies in emerging markets is also expected. Countries with large remittance markets and high inflation rates will be the best platform for cryptocurrencies to shine. Cryptocurrency tools have already started to cross a threshold of usability in emerging markets, even in areas where unreliable internet and a lack of education are a challenge.
Just the other day, GiveCrypto.org made paid about 5,000 people using cryptocurrencies and about 90% of these people were able to create at least one transaction with a local store that accepts cryptocurrency or a local cash out partner. It should therefore not come as a surprise in the 2020s when we see cryptocurrency adoption in emerging markets scaling to hundreds of millions of users. Be sure that some countries will even have the majority of their transactions done in cryptocurrencies instead of fiat.
There will be a Flippening of the Billionaire
Today the price of one Bitcoin is about $200,000. Isn’t it crazy that was worth one papa Jones pizza in 2009 is worth a good car today? In a few years, half of the world’s billionaires will be from cryptocurrencies. Soon, the rich and mighty will be pro-technology individuals, therefore, it will not be surprising at all that such individuals will lean more towards science and technology investments. Exciting times, aren’t they?
Domination of the casino and gambling sphere
Cryptocurrency casinos are increasing in popularity and this is bound to get even better. Digital coin casinos are far more advantageous than traditional casinos. This is due to reasons such as increased safety for the money and identities of gamblers. Transaction times are also shorter when using crypto than when using any other payment method. The other advantage is that the player does not have to provide their details, which is something that most players dread because they want to protect their privacy.
There is also the issue of very low transaction fees. And last but not least, the games are fair because of something called provably fair casinos. There is every reason in this world for people to shift from traditional casinos to crypto casinos.
I don’t know how many of these predictions will turn out to be true but I am as anxious as everyone else to see where cryptocurrencies are headed and what is in store for them soon. I feel like the mass adoption is going to be achieved especially because cryptocurrency uses are going to expand from just trading too so much more such as real-world utility applications.