Cryptocurrencies have been subject to an unending debate since the launch of Bitcoin (BTC) more than a decade ago. Nevertheless, the burgeoning asset class has expanded into a $1.6 trillion market and it continues unlocking new milestones that have left financial experts struggling to decipher what the industry will look like in the future.
While some believe cryptocurrencies will transform how we interact with money and potentially become the currency of the internet, others believe cryptocurrencies are a fad that will result in a massive bubble.
According to Ivory Johnson, a certified retirement advisor and the founder of Delancey Wealth Management, cryptocurrencies will transform the financial sector because of their ability to facilitate swift cross-border transactions at little or no cost. He said that BTC will become the world reserve currency before 50 years end. In the worst-case scenario, he believes the leading cryptocurrency will make many people wealthy before it is dethroned by better technology.
Frederick Kaufman, the author of The Money Plot: A History of Currency’s Power to Enchant, Control, and Manipulate, believes the dollar will have more similarities with cryptocurrencies than with silver or gold by 2071. He added that it is pointless to doubt the potential of encrypted algorithms as stores of value and media of exchange.
Dan Egan, the Vice President of Behavioral Finance and Investing at American financial advisory company Betterment, said cryptocurrencies such as BTC have become key in the movement of money and speculation. To this end, Dan, who is also an expert in retirement planning believes it is unlikely that the coins will go away. However, Egan voiced concerns about the crypto industry’s energy requirements. On top of this, he claims governments might deem cryptocurrencies fiat competitors, pushing them to become darknet instruments.
Dragan Boscovic, the Founder and Director of the Blockchain Research Lab at Arizona State University, said the mere fact that regulators across the globe are developing crypto regulatory frameworks means the nascent sector is here to stay. According to him, financial watchdogs have already established that cryptocurrencies will dominate the digital economy. With this in mind, Boscovic believes cryptocurrencies will become mainstream in the next decade.
Predictions from players in the crypto scene vary, but most are bullish that BTC and alternative cryptocurrencies will surge in the long term. For instance, star investor Cathie Wood believes that BTC will surge past $500,000 in the next five years. Bobby Lee, the founder of Ballet Crypto, projects that BTC will hit $1 million in two decades.
Although there are different predictions on how the crypto sector will fare, it is becoming increasingly difficult to think of a future without them because of the numerous benefits they offer. These include, but are not limited to, serving as an inflation hedge and their ability to ensure financial inclusivity. The onset of the COVID-19 pandemic also helped uncover what is perhaps the most significant benefit of cryptocurrencies. The ability to facilitate secure, cashless payments has helped cryptocurrencies become part of the daily lives of many individuals across the globe.