The trailblazers of a new dawn in the modern fintech world, cryptocurrencies are a revolution in more ways than one. On one hand, they aim to democratize finance and on another, they let users to foray in Web 3.0 technologies like NFT and Metaverse. Fintech experts are divided in their opinion about the arrival of cryptocurrency in the mainstream. One group believes crypto is not likely to enter and thrive in the mainstream, especially because of lack of trust. Read more about crypto spot prices at Multibank.io.
However, a larger section of fintech experts are optimistic that either crypto has already entered mainstream or is soon to enter and mark its footprints in mainstream economy. In that light, it won’t be exaggerating to assert that the future of cryptocurrency is poised to witness a beaming dawn in the coming times.
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Crypto crash 2022 surges concerns
All the optimism and positive predictions aside, it would be unfair to discuss the future of cryptocurrency without mentioning the recent crypto crash last May. A catastrophe caused by multiple factors, the crypto crash led to a whopping overall loss of around $800 billion, if not more. Worse, the attack plummeted the crypto market cap from a glorious 2 trillion USD in 2021 to something around 1.25 trillion USD in just a few months. Put simply, the crash has naturally put a big question mark on the future of cryptocurrency.
Top facts and figures about rising crypto adoption
Below are some facts and numbers that will testify why the majority of the experts are positive about a bright future of cryptocurrency.
- Crypto adoption rate scaled up to 880% in 2021, thereby signalling a thriving future of cryptocurrency
- India dominates the crypto market, in terms of rate of crypto adoption
- Over 15,000 businesses use crypto
- Around 106 million worldwide hold account in crypto exchanges
- In early quarter of 2022, the crypto scene received a massive inflow $127 million from institutional investors
- The rate of crypto adoption has even surpassed the rate of internet adoption during the initial days of internet boom. It’s self-explanatory why experts are positive about the future of cryptocurrency in the mainstream economy.
- Number of crypto users is growing at a mindblowing rate of around 100%
- By 2024, the crypto scene will be bustling with 1 billion (if not more) users
- El Salvador has already entrusted legal tender to Bitcoin- a landmark step for future of cryptocurrency in mainstream economy
- Number of Bitcoin ATMs rose to over 33,000 in 2021 as compared to 15,000 in 2020
- US SEC has finally given nod to release of crypto ETFs
Crypto might come out stronger
Having said that, let’s not forget that the crypto scene has only emerged stronger every time it has come out of a crash or a bearish phase. A big bunch of crypto experts are expecting something similar this time as well. Some of the leading crypto market leaders have even stated that the crypto market, especially the Bitcoin market, is passing through a correction phase to reach a balanced state after its ATH. For further assurance about the future of cryptocurrency, it must be stressed that a good lot of crypto coins, including Bitcoin, have shown improvement in price in June 2022.
Major drivers behind crypto’s foray into mainstream
When it comes to the future of cryptocurrency, experts are positive that the crypto market cap is estimated to grow by 4-5x by 2030. And, this estimation has been calculated keeping in mind the recent crash last May. Going by that calculation, the future of cryptocurrency market cap is slated to scale up to $4-5 trillion in the coming 7-8 years.
So, what are the major factors behind the promising future of cryptocurrency?
Increase in crypto adoption
Crypto adoption rate has been growing by leaps and bounds with each passing year. Once a niche subject restricted among techies and geeks, crypto has now found reference in modern pop culture too. Even a school-going kid now has heard about crypto.
In the USA alone, over 40 million people use cryptocurrency and around 50 million are positive about owning or using crypto in the near future. Some of the biggest companies in the world are invested in crypto- including the giants like Microsoft, Virgin, Tesla, Walmart, AMC, Newegg, and more.
The rise in crypto adoption has been fueled by growing awareness about the benefits of both cryptocurrency and blockchain technology.
Newer uses of crypto
Interestingly, the crypto scene is witnessing newer uses of cryptocurrency of late. Crypto is no longer just used for investment, trading, and payment. A lot of crypto enthusiasts prefer to offer crypto as a gift these days. You can later on use the gifted crypto for investment and trading. Potential of versatile use cases beckons a highly promising future of cryptocurrency.
Support from institutional investors
Growing rate of institutional investment is a key factor behind a positive future of cryptocurrency in the mainstream economy. Bitcoin has received the maximum share of institutional investment- around 60+ institutional investors have invested in the coin. However, new coins like Shiba Inu, have also been able to pique interest from institutional investors.
Allows entry in new Web 3.0 technologies
This is another reason why most crypto experts are positive about a bright future of cryptocurrency.
NFT and Metaverse are two of the most phenomenal aspects of Web 3.0 technologies. Both are backed by blockchain technology and both require cryptocurrency for transactions. It implies that you need the help of crypto to delve into the futuristic Web 3.0 technologies. Both NFT and Metaverse industries are poised for a stellar growth which will have a positive domino effect on the future of cryptocurrency as well.
Incorporation in traditional stock exchanges
Crypto ETFs, the newest development in the crypto scene, don’t need you to open an account in crypto exchanges. You will be able to trade crypto ETFs from conventional stock exchanges. This way, crypto ETFs are enabling traditional investors to enter the crypto scene as well. The trend will lead to increased crypto awareness, adoption, and eventually a booming future of cryptocurrency.
It’s to mention here, some of the crypto exchanges today are offering the same kind of features as you find in a conventional stock exchange. The idea is to create a more familiar environment for traditional investors to increase crypto adoption.
Final words
A larger part of the world population is yet to embrace crypto, thereby raising questions about the future of cryptocurrency.
One of the major reasons behind this is the escalating rise in crypto scams and lack of trust owing to absence of strong regulation in the crypto scene. However, governments and lawmakers in major parts of the world are putting in thoughts to secure the future of cryptocurrency. They have finally softened their previous bias towards crypto and are looking for ways to regulate the industry. Best part is, banning crypto is not on their radar anymore which itself assures a thriving future of cryptocurrency. The idea is to draft regulations in a way that will help to keep check on the volatility and scam attacks- yet without undermining the blockchain technology. To ensure a secured and prospective future of cryptocurrency, the focus should be on laws that will make the industry immune to cyber scams and more trustworthy for investors.