Home Technology Top 7 Predictions for Cryptocurrencies in the Future by Guy Galboiz

Top 7 Predictions for Cryptocurrencies in the Future by Guy Galboiz

126
0

If you are a part of or wish to be a part of the world of crypto, Blockchain and ICO, it is a given that you probably monitor various sources and dozens of news channels in order to keep up with the latest news. However, it is not an easy task to keep track of all cryptocurrencies and make up your mind about them because they change very quickly. But, this hasn’t stopped businesses from embracing the crypto market, tokens and the innovative Blockchain technology. As Guy Galboiz has said, more and more people as well as institutions are grasping the concept of Blockchain technology and exploring its applications.

So, what can we expect from cryptocurrencies in the future? It is a fact that Bitcoin is here to stay and will not simply vanish from the battle arena. But, what will be the fate of other cryptocurrencies? Some of them will fail and some of them will rise. There will also be other changes in the cryptocurrency market. As a matter of fact, some of the biggest industries have already begun to implement the newest Blockchain projects; energy companies and FinTech, healthcare and government, manufacturing, transportation, e-commerce shops and retail and also media and telecommunications.

In a nutshell, cryptocurrencies are expanding on a global scale and the whole world is taking a close look at them. Therefore, you need to be familiar with the top 7 predictions that have been made about this digital currency for the future, which are outlined below:

Prediction 1: Crypto regulations and blacklisting

It started last year and will continue to happen throughout 2018 and the future; more and more countries, organizations and banks have decided and are deciding to push towards stricter regulations governing the use of cryptocurrencies. Moreover, some of these regulations can actually turn out to be immensely helpful, especially when it comes to the speculative nature of ICOs. Blacklisting will be one of the instruments that will be used in this case. There are some companies that have a connection to criminal acts and process their dirty money through the exchange of ‘corrupted’ crypto addresses.

Thus, through blacklisting, it will become possible to prevent different merchants and exchange markets from accepting digital coins from these blacklisted firms and the addresses affiliated with them. A worldwide blacklisting program may not have been possible before, but things have changed a lot. These days, almost every exchange all over the world has adopted a technology for verifying a customer’s identity. Apart from that, a number of professional organizations have also developed numerous sophisticated Blockchain analytical tools that can come in handy.

It should be noted that cryptocurrency regulations and data protection laws would not be enough to serve as a barrier for a worldwide crypto exchange of private user data. However, there is a long way to go before blacklisting can be put into effect. First and foremost, any such measure would need to be integrated into private wallets to alert users immediately about corrupted coins as soon as they are received. Regardless, it will not be long before tangible steps are taken in this direction as there is a rising demand of cryptocurrencies.

Prediction 2: The introduction of Off-chain

Amongst other predictions that have and will be made regarding cryptocurrencies, one of the most notable ones is about off-chain i.e. non-blockchain data storing. What might come as a surprise is that rather than on Bitcoin, it is expected on Ethereum. There are a number of reasons for introducing these offchain payment networks like Lightning to first come on Ethereum. For instance, the Lightning network that exists on the Bitcoin platform is not promising anything new; it only suggests financial transactions that are not really so surprising anymore.

In contrast, off-chain Ethereum networks can be used for building entirely new apps such as applications without zero knowledge proof of transactions, decentralized marketplaces and also sophisticated contracts and almost every smart contract you might want. Furthermore, if people decide to build a decentralized world computer, going on-chain will not take them far. In simple terms, it would not be possible for any blockchain in the world to handle even a portion of the potential traffic for this computer. Only the Ethereum platform is better prepared to deal with this task.

Another thing to remember is the Bitcoin wallets are not familiar with the smart contracts that are needed for Lightning network so some learning will be involved. In comparison, Ethereum wallets already have the capability of processing a lot of contract code. The network’s general design consists of big contracts, making them a strong starting point when you are planning to create an off-chain network.

Prediction 3: Great variety in altcoins

Once Bitcoin reached its peak, the world became absolutely obsessed with the idea of cryptocurrencies and this has led to the existing market situation; the pioneer cryptocurrency is slowly, but steadily, losing its market share. There are other altcoins popping up, which include Nano, Ethereum, Ripple, QTUM and more and these are taking up the market share. Nonetheless, it is still not enough to fill the gap that Bitcoin is leaving behind. When there is a decline in the share of a single currency in the global cryptocurrency market, it will be divided by the other cryptocurrencies out there.

The predictions for this year and the next few years clearly indicate that the cryptocurrency market will continue to proceed further down the path of diversification and new altcoins will be introduced. Even though the world is mostly focused on Bitcoin and Ethereum for now, it is just temporary and things will change eventually. More and more cryptocurrency markets will be decentralized in the future and investors will respond to this by diversifying their portfolios. In return, cryptocurrency providers, along with payment platforms, will begin to accept a wide array of altcoins. This would mean that supporters of solo coins will simply be rendered irrelevant.

Prediction 4: Unicorns should be ready for slaughter

If you take a look at the cryptocurrency market right now, you will see that the market capitalization has surpassed the one billion dollar line and that there are more than 45 cryptocurrencies currently available. These are referred to as crypto unicorns. However, it should be noted that only a handful of these unicorns are used on a global scale such as Bitcoin, Litecoin, BitcoinCash, Monero, Ethereum, IOTA etc. There is also another handful of these cryptocurrencies, which serve as functional backup. They are like a fork for the coins that were named first such as Ethereum Classic, Zcash, Dash, Bytecoin and more like these. The remaining are nothing more than speculation.

It is quite obvious that an economically rational reason cannot be found for explaining the existence of more than 45 crypto unicorns. Most of these currencies are not practically viable. Even if the entire world does learn to adapt to the cryptocurrency reality, it is a fact that people will not need this many cryptocurrencies and in such huge numbers. For instance, future predictions that were made for ZRX crypto stated that the value of this currency would reach $5 maximum by 2020 and there are also other currencies that cost less than $1.

It is simply not possible for most of these cryptocurrencies to hold amongst the other major competitors. Therefore, the predictions for cryptocurrencies in the future indicate that some of these unicorns would be slaughtered.

Prediction 5: There will be turbulence for IOTA

IOTA is not just a cryptocurrency, but is in fact an extremely innovative platform that extends beyond Blockchain. As a matter of fact, it is operating as a technological resource-as-a-service principle. This means that IOTA has the ability of transforming all the possible tech resources into potential services for trading in the market without fees and in real time. This can be immensely helpful for organizations and companies because they get the opportunity for exploring different new B2B models.

Therefore, due to its uses, IOTA will have a pretty exciting year. From the end of 2017, IOTA has become an ‘Internet of Things’ cryptocurrency that has received a lot of attention from huge brands such as Bosch Telekom. Nonetheless, the expectations are quite high and it remains uncertain if IOTA will be able to handle this pressure or not. The answer to this query depends on whether it will be able shut down the centralized administrator successfully or will fail to do so. Moreover, there is also the concern about the stability of the network as well as its ability of eliminating spam.

Experts are still uncertain about whether IOTA will become more reliable if it experience an increase in its traffic volume. Thus, the future will bring some clarity where IOTA is concerned. If the answers turn out to be positive, then there is a good chance that IOTA will end up as a great candidate for one of the top currencies in the market.

Prediction 6: The trend relating to non-fungible tokens

Apart from the above mentioned predictions regarding existing cryptocurrencies, the future is expected to be a thriving party of a number of emerging ICOs. These are essentially token sales that represent a kind of value in a particular company, but without stakes of ownership or stock, as in the case of Tesla or Telegram. However, fungible tokens are used by most ICOs, which means that one token is exactly like the other. On the other hand, non-fungible tokens are unique in their own right and there is a huge demand for them in the market.

It is possible to use such tokens for law and securities service, selling real estate, art and insurances, financial bonds and shares, collecting various items or even playing games. In late 2017, the game known as Crypto Kitties already proved that these tokens are definitely a useful thing to have. This year and the upcoming one will show us that there has been a massive rise in these non-fungible tokens since a standard has also been established by Ethereum for creating them.

Prediction 7: The ICO boom is going to be quite common

As mentioned above, 2017 was the year when the era of wild-ICOs-west begun. Therefore, it is only reasonable that predictions for cryptocurrency in this year and the next promise a plethora of profitable opportunities for not just ICO startups as well as investors. It is a given that ICOs will still remain a very important tool in raising funds and involving a greater number of people from all over the world. As a matter of fact, even the non-IT and non-cryptocurrency companies have started showing interest in ICO campaigns.

Nonetheless, those interested in the cryptocurrency market need to bear in mind that such a boom in ICOs also means that plenty of unregulated ICOs will crop up. Hence, investors need to be extra cautious because they don’t want to become victims of malicious scammers. Anyone who is interested in investing their money in an ICO needs to consult a professional and ask them for advice. They will be able to tell you if it is a good idea or not.

These are the top seven predictions that have been made about the future of cryptocurrencies. It is quite apparent that we are a part of the most technologically advanced age in history. The recent adaptation of Blockchain technology in a large number of industries indicates that the predictions that were made about cryptocurrencies a few years ago have been fulfilled. The cryptocurrency world is getting more and more attention from people in different parts of the world, which would lead to new regulations and laws concerning cybersecurity.

As a result, it would lead to an entirely new chapter in the history of cryptocurrencies and the above mentioned predictions would also come to pass. Being aware and informed beforehand can be extremely beneficial for all interested parties in making the right decisions and staying ahead thereby protecting their investment in the best possible way.

Learn more: Where is Blockchain Technology Going? An Analysis by Guy Galboiz

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here