This year alone, we’ve seen Bitcoin hit several new all-time high prices, more institutional buy-ins from major companies, and full integration of Bitcoin as legal tender in a central American country. However, not only Bitcoin achieves new feats in the cryptocurrency market. Ethereum including several altcoins also followed Bitcoin’s step and achieved several new feats earning investors huge profit margins. With the crypto market showing a glimpse of its potential, investors’ interest in crypto skyrocketed this year. Plenty of hot takes about the future of crypto filled the news and prominent names like Elon Musk joined the discussion. However, as more people rushed into the crypto market, the U.S government began to look for the best way to protect its citizens. The Biden administration has now expressed its interest in regulating cryptocurrency within the United States. Even with the so much growth and widespread acceptance the crypto industry has witnessed this year, the industry is still only in its infancy. The crypto industry will continue to evolve and more opportunities will present themselves. In the long term, it’s difficult to predict the future of cryptocurrency. But looking at the events that surround the industry, some projections can still be made. What’s next for cryptocurrency? With the high influx of investors into the crypto market this year, three fundamental happenings can be projected to transpire in the nearest future. These include;
Stringent Cryptocurrency regulationsCrypto ETF approvalBroader institutional cryptocurrency adoption
Cryptocurrency Regulation Lawmakers and legislatures in Washington D.C and across the globe are trying to understand the best way to go about cryptocurrencies. A lot of countries have talked about regulations citing the need to protect their citizens against cybercriminals and fraud. So far, China has taken an anti-crypto stance, banning all crypto-related transactions within its territory. In the United States, things are still unclear as the government is looking for a possible way to regulate crypto. Sure, the US government is not looking to ban cryptocurrency. But they still must find a method to protect investors in the crypto market. One thing is certain though, that crypto regulation is coming sooner rather than later. Crypto ETF Approval There’s been a prominent breakthrough as regards ETF approval in the United States. The first Bitcoin ETF is already establishing itself on the New York Stock Exchange. This recent development indicates a new and yet traditional way of investing in cryptocurrency. The BITO Bitcoin ETF enables traders and investors to purchase cryptocurrency directly from conventional investment brokerages. All investors have to do is open an account with this brokerage such as Vanguard or Fidelity to buy crypto conventionally. However, many claim that the BITO ETF is not ideal because even though the fund is linked to Bitcoin, it does not actually hold the crypto directly. Instead, the fun holds Bitcoin as a figures contract. Also while Bitcoin futures follow the normal trend of the crypto market, experts suggest that BITO ETF may not track Bitcoin price directly. The SEC has been trying to approve ETF several times over the last few years. BITO is the first of its kind so these drawbacks are quite expected. Hopefully, there’s a continuous upgrade on the system, or better still, the SEC approves another kind of ETF. Broader Institutional Cryptocurrency Adoption Lots of mainstream firms, companies, and organizations have taken interest in blockchain and cryptocurrency in general. For instance, AMC announced this year that it will accept Bitcoin payments starting by the end of this year. Fintech companies such as Square, and Paypal are also taking a chance on crypto by enabling users to buy on their platforms. Tesla on the other hand continues to dabble in and out on accepting Bitcoin as a payment option. However, the company holds a lot of crypto assets in billions of dollars. Conclusion Even though the future of cryptocurrency lies in the hands of legislatures, brands can greatly influence the outcome. Presently brands are already jumping into the market to fill the market needs that the government has so far dismissed. Brands are also setting the trends but they still need a positive push by the law markers. No doubt if the lawmakers create an enabling environment for brands to tap into the crypto industry, the crypto industry will skyrocket!! But the reality is still from this ideal situation. Frankly, it is still difficult to predict what actions government will take next or the reaction of top companies to such actions. Hence, it is difficult to predict the future of cryptocurrency. But, if the market continues to move in this direction, the future is indeed bright.
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