What does the future hold for cryptocurrency? Here’s what experts have to say

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Disclaimer: The opinion expressed here is provided for informational purposes only, and is not investment advice. There is risk involved while investing so, you should always do your research before making any decision. Sociobits’ opinions are not necessarily being reflected here and we don’t recommend investing money that you cannot afford to lose.

There’s always something happening in the world but these days there are exceptional things happening in the world of crypto. If there’s something that makes it to the headlines every other day, after Elon Musk then it definitely has to be cryptocurrencies.

Cryptocurrencies have been seeing new lows these days. After Coinbase announced what the industry referred to as a “crypto-winter”, many crypto companies including Coinbase, Robinhood, and BitMEX decided on cutting down their staff.

Recently, it was also reported that Bitcoin fell 70% from its all-time high leaving investors fearing about what is going to happen with cryptocurrencies. The cryptocurrency market keeps seeing fluctuations all the time. It may have seen great highs but also seen very terrible lows. Although the market is fairly new to judge and there are a lot of factors that have contributed to its recent downfall, a lot of people have already invested in the market. So, questions like what is going to happen with cryptocurrencies in the future? And whether one should keep investing or not? are normal.

To give keep your brain at ease, here is what some of the experts in the finance and crypto market have to say about the future of cryptocurrencies.

Igor Zakharov – CEO of DBX Digital Ecosystem

Igor Zakharov – CEO of DBX Digital Ecosystem
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Crypto is seemingly hanging in the balance and the market’s future is as uncertain as crypto is volatile. There is absolutely no way of telling with absolute certainty what will become of crypto. However, considering some of the factors surrounding the current meltdown may help in making educated predictions.

First, it is worth mentioning that it was mainly external factors that brought about the current collapse. With the exception of the Terra incident, there have not been any significant failures in the structure and design of crypto as technology. The concept of crypto and a decentralized economy is thus still viable. That being the case, how did we find ourselves fighting the worst crypto winter yet?

While crypto has reached some significant milestones, it has also suffered some backlash from institutions as well entire countries. Concerns about the environmental impacts of crypto have been on the rise, so much so that Elon Musk, CEO of Tesla, said that the company would stop accepting Bitcoin as payment because mining Bitcoin requires too much fossil fuel-generated electricity. This and similar events caused a more rapid decline in the price of Bitcoin. 

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Additionally, some governments, in addition to the environmental impacts of crypto mining, are concerned about the role crypto and blockchain technology play in fraudulent activities and money laundering schemes. China is just one country that placed a ban on crypto and started pushing its own centralized digital currency. This contributed to reduced activity in the crypto space. 

All these events coupled with the hiking of interest rates by federal reserves in response to the inflation caused by adverse world events led to investors losing confidence in the crypto market and instead choosing to invest in other less risky assets. Crypto being a sentiment-driven market did not respond well to this and the situation worsened.

Although it may appear as though crypto is doomed, the factors causing its downfall aren’t permanent. With regards to environmental concerns, alternative crypto mining methods have been developed that require much less energy. For instance, Ethereum, the second-largest blockchain, is already working to switch from the energy-intensive proof of work mining mechanism to the much more eco-friendly proof of stake mechanism. Even for blockchains, like Bitcoin, that are less likely to make this switch, alternative sources of power are being promoted such as solar and wind.

Such positive moves will most likely improve crypto’s image which may lead to much wider adoption. Investor confidence is also likely to be restored once the current world conditions are resolved or if financial institutions find investor-friendly solutions to inflation.

A decentralized economy is still an enticing concept for many and this crypto winter may well be just another hurdle that crypto needs to overcome to evolve and become a better technology.

Leslie Radka – Founder and Financial Advisor of GreatPeopleSearch

Leslie Radka - Founder and Hiring Manager of GreatPeopleSearch
Leslie Radka – Founder and Hiring Manager of GreatPeopleSearch

Cryptocurrency is getting the attention of investors day by day. And with the passage of time is becoming popular and it will be impossible of investors to ignore cryptocurrency. According to the estimates of analysts, this industry will grow triple times in the year 2030. The value of cryptocurrency will be approximately $5 billion.

The growth of cryptocurrency is extremely fast, and the future holds much more for this digital currency. The peak time of cryptocurrency was started during the pandemic when a lot of people had some assets invested in this global market. And in the future cryptocurrency will get more importance and soon it will become the most widely used and preferred online trading and digital currency platform.

Investors of cryptocurrency currency are increasing day by day but in the future, this platform will get tremendous investors that will make it the world’s most widely used digital currency platform. A considerable number of investors is proof that this currency has potential. More institutions are getting involved in it and some countries have given it legal assurance.

Cryptocurrency has the potential to give financial freedom to its investors. People who have understood the phenomena and technology behind cryptocurrency are wisely investing in cryptocurrency. In the future, there is a chance of minimal risk and maximum profit in cryptocurrency for its investors. This blockchain technology will allow its users to get maximum profit out of it.

Hence the future of cryptocurrency is super bright for people, and those who are not taking it seriously and are thinking that there is nothing worthy in cryptocurrency, or that cryptocurrency is a total scam are in deep ignorance. Everyone should understand the importance and efficacy of cryptocurrency because in the future the world will be transformed into a digital world, where everything will be done via the internet.

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Eddie Rejcevic – Crypto Expert and Market Researcher at TastyTrade

Eddie Rejcevic - Crypto Expert and Market Researcher at TastyTrade
Eddie Rejcevic – Crypto Expert and Market Researcher at TastyTrade

One trend that I believe will continue to develop over the next few years is the adoption of self-custody wallets. People are starting to realize that not having total control over their assets is becoming a major liability. Institutional adoption of crypto will also continue, but only if they see use cases for the assets rather than simply investing in the assets. De-Fi will continue to grow, even with the recent hurdles, such as Celsius, hurting De-Fi’s reputation. The ability to put your crypto assets to work will appeal to the masses and become easier and easier to participate in.

“I do believe that in the next 12-18 months, dependent on the macro environment, we can see crypto return to a bull market,”

– Eddie Rejcevic

While I am not making the case for bitcoin to retest its all-time high in the next week or month, I do believe that in the next 12-18 months, dependent on the macro environment, we can see crypto return to a bull market.  It’s not uncommon to see large drops in the overall crypto space, but historically, we tend to see even larger price increases in the years to follow. Over the last 6 years, on a yearly basis, we’ve seen an average drawdown of -50% in bitcoin, but we then saw an average rally of 590% to follow. While it may not immediately lead to new all-time highs, it will be a time of higher highs and lower lows.

Ivan Hong – Head of Content at Request Finance

Ivan Hong - Head of Content at Request Finance
Ivan Hong – Head of Content at Request Finance

The future of cryptocurrency lies in going back to solving real-world problems: providing better ways to spend, save, and invest.

Crypto can provide better ways to spend. Blockchain-based cross-border payment rails can be superior – in nearly every measure of efficiency, cost, and speed – to the present system of running on SWIFT interbank messages, card processors, and paper invoices.

International trade, remote work, and e-commerce – each billion-dollar industry in its own right can be made more frictionless with cryptocurrencies. The fewer barriers to the movement of money, the more global economies can become.

These are not just castles in the sky from a distant future. For the first time in history, we have seen truly global labor markets, with the normalization of remote work in the wake of the global COVID-19 pandemic, and the mushrooming of remote-first Web3 companies and DAOs.

On top of that, we have decentralized finance, which can also provide better ways to save and invest. More efficient, accessible financial markets are enabled by smart contracts and programmable money.

The IMF Global Financial Stability Report 2022, illustrated how DeFi platforms can function as financial intermediaries at about a third to a quarter of the operational costs of banks and other NBFIs in advanced economies. In emerging economies, DeFi platforms can be up to seven times cheaper on average than their traditional financial counterparts.

The more global capital markets are, savers can get better returns on their savings, while entrepreneurs anywhere can raise money more easily and cheaply. Today, a person living in the Philippines cannot easily invest in the S&P500. Nor can potential unicorns in Africa access the sort of venture funding available in Silicon Valley. Crypto can, and in some cases has already changed that.

Throughout this period, we have witnessed participation in capital markets on an unprecedented scale. DeFi platforms and speculative investments in crypto have attracted users and entrepreneurs from virtually every corner of the globe in an incredibly short span of time.

Crypto can create the preconditions for more competitive, global, and innovative markets – from labor, to capital markets, and even in global commerce. The crypto winter will not change that. On the contrary, it has eliminated the misallocation of capital toward frivolous projects. The companies who are continuing to build in this bear market today will emerge to become the FAANG companies of tomorrow.

Carl Jensen – Founder of Money Mow

Carl Jensen – Founder of Money Mow

WIN OR ADOPT

Just look at the numbers to see that crypto is the way of the future. Don’t get caught up in the “empower the little person, fight the banks” nonsense; it’s an emotional tale, and you should invest in economic stories rather than emotional ones.

Crypto lowers the barriers to participation on the economy’s supply side, decreasing the need for middlemen (corporations) and resulting in more efficient economies. They will win in the end because they are more efficient; you can either accept them and win with them or fight them and lose.

Until we completely eradicate scarcity, which isn’t going to happen anytime soon, economics will always influence the course of the globe.

MORE AND MORE ACTORS ARE BECOMING RECEPTIVE

Cryptocurrency is expected to become a more generally recognized financial system in the near future. It has caught the interest of both the corporate and governmental sectors, and It is currently widely accepted in a variety of businesses. So far, both public and private institutions have formally recognized bitcoin as a part of their financial systems. Throughout the world, institutional investors, technology-focused corporations, and even national central banks have begun to accept cryptocurrencies into their operations.

In addition, as a result of its acceptance, new policies and regulations are being implemented to promote more consistent procedures in the future. As more players break into space, the policies are also being utilized to keep all players in control.

Richard Gardner – CEO of Modulus

Richard Gardner - CEO of Modulus
Richard Gardner – CEO of Modulus

Given that hundreds of billions of dollars of crypto wealth have been wiped out during the past several months, it is easy to ask questions. Many wonder what will become of the digital assets industry. But, I think it would be fair to consider that the industry split in two. Perhaps, even, it had been two separate industries all along.

Both industries were harmed during the past several months. Both suffered losses, mostly due to external factors. Both suffered from a lack of investor confidence. A lack of confidence stemmed from an unpredictable war in Ukraine. A lack of confidence from surging inflation due to unrestrained spending during the COVID pandemic. A lack of confidence was brought about by a wait-and-see game of how the Fed would react to said inflation. A lack of confidence is egged on by new strains of COVID which continue to produce surges.

Those factors, and others, led to the faltering of Bitcoin and other digital assets. Those same factors led to the same faltering in the traditional assets arena, including a day last month that saw the Dow Jones drop more than 1100 points. Those factors hit the two separate industries just the same. But the lasting impact – that’s where the industries will diverge.

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On the one hand, there’s the burgeoning blockchain economy. It is filled with innovative projects which are based on development, adding value to the industry and the world. There are cryptocurrencies that fall into this industry, as well as crypto projects and other blockchain-based technologies. In the other industry, too, are cryptocurrencies, projects, and other blockchain-based technologies.

“Some projects and tokens were outright scams. But, others were able to simply ride the bull run. They weren’t necessarily purposely toxic. They were simply redundant or useless, invented by those who were looking for a quick payday, cashing in on a trend, rather than developing the future,”

– Richard Gardner

So, one might ask, how can two industries emerge from one? It is simple really. One industry is based on innovation. It boasts innovators who have developed projects which aim to add value to the world. Innovators who engaged investors so that they could fund these incredible feats of human ingenuity. These projects lost some value. And those projects saw investors lose value. However, based on the strengths of their innovation and purpose, they will rebound, that much is sure. So, too, will the Dow. Eventually.

But what of the tokens and projects in the other industry? What about them? The second industry was one built out of greed rather than innovation. Those are the projects that we see make the news for swindling investors. Some projects and tokens were outright scams. But, others were able to simply ride the bull run. They weren’t necessarily purposely toxic. They were simply redundant or useless, invented by those who were looking for a quick payday, cashing in on a trend, rather than developing the future. These projects… most will not be able to withstand the dip.

The two industries diverge on intent, and those projects which are built with integrity and innovation in mind will rebound. And, in the end, those projects will be aided by this purge. This momentary dip will help mold the industry, as it moves into the future. While this dip wasn’t caused by the industry, that doesn’t mean that the industry won’t find strength in this dark time.

It’s time to take a long-term lens to view this short-term debacle. With increased ties to more traditional institutional money, it only makes sense that digital assets would follow the same drop due to external factors. Simultaneously, because of that increased institutional money, the industry will find traditional ways to mitigate risk. I think this drop will create brand new, increased interest in crypto derivatives. Used properly, they can mitigate risk from single asset price fluctuations. And, now, we’re headed towards a slimmer market – one which will have an increased interest in derivatives.

Bill Bernstone – CEO Marketplace Fairness

Bill Bernstone - CEO Marketplace Fairness
Bill Bernstone – CEO Marketplace Fairness

What is your opinion on the future of cryptocurrency?

The future of cryptocurrency is uncertain, but it holds great potential. Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and control the creation of new units. Cryptocurrency is decentralized, meaning it is not subject to government or financial institution control. This makes cryptocurrency an attractive option for those looking for an alternative to traditional currency.

Is cryptocurrency here to stay?

Cryptocurrency is here to stay. Despite volatility and some risk, the benefits of cryptocurrency are too great to ignore. Cryptocurrency is a more secure, efficient, and affordable way to conduct transactions. It is also a more accessible option for those who do not have access to traditional banking systems.

What will be the future of cryptocurrency?

The future of cryptocurrency is uncertain, but it is likely that it will continue to grow in popularity. Cryptocurrency is a more secure, efficient, and affordable way to conduct transactions. It is also a more accessible option for those who do not have access to traditional banking systems. These benefits are likely to continue to attract users to cryptocurrency.

What are the benefits of cryptocurrency?

Cryptocurrency offers a number of benefits over traditional currency. Cryptocurrency is secure, thanks to its use of cryptography. Transactions are also quick and efficient and can be conducted anywhere in the world. Cryptocurrency is also more affordable than traditional currency transactions.

What are the risks of cryptocurrency?

Cryptocurrency is not without risk. Volatility is a major risk associated with cryptocurrency. Cryptocurrency is also a target for hackers, and there have been cases of stolen cryptocurrency. In addition, cryptocurrency is not regulated by any government or financial institution, which means there is no guarantee that it will be worth anything in the future.

What challenges will cryptocurrency face in the future?

The future of cryptocurrency is uncertain, but it is likely that it will continue to grow in popularity. Cryptocurrency is a more secure, efficient, and affordable way to conduct transactions.

Steve Wilson – Founder of Bankdash

Steve Wilson - Founder of Bankdash
Steve Wilson – Founder of Bankdash

By 2030, the market for cryptocurrencies will have more than tripled, reaching a value of around $5 billion. Investors, companies, and brands can’t ignore the growing popularity of cryptocurrencies for very long, whether they want to or not.
However, contradictions tend to follow cryptography everywhere. Investors support regulation, but they are concerned about many of the effects it will have. They care about the environment, yet cryptocurrency has a significant carbon impact.

Understanding these subtleties is essential to foreseeing customer behavior in the face of a highly hazy future for cryptocurrencies as well as the general consumer mood.

While cryptocurrency investors have been on the rise globally for some time, recent growth has been spectacular.

Additionally, the characteristics of investors have changed. It’s no longer such a specialized passion in the era of meme stocks and stimulus cheques. Instead, regular people have viewed this new asset class as a means of bolstering their portfolios with potentially more lucrative, albeit riskier, assets.

“Future prospects for cryptocurrencies are still very much in doubt. Critics only see risk, while supporters see boundless possibilities.”

– Steve Wilson

Future prospects for cryptocurrencies are still very much in doubt. Critics only see risk, while supporters see boundless possibilities. Although Professor Grundfest is still skeptical, he acknowledges that there are some situations where cryptocurrencies can be a practical answer.

Comments from experts give us an idea of what the cryptocurrency market will look like five to ten years down the line. It is true that there have been a lot of factors that contributed to the current scenario of the market but many experts also rightly pointed out that there are numerous possibilities when we talk about crypto.

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