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The future of cryptocurrency seems promising right now? But is it, truly?
In the last six months, globally, we have witnessed significant developments and achievements. However, one major achievement has been the growth of cryptocurrency and its widespread adoption. Investors, financial institutions, organizations, etc. are making new amendments with respect to cryptocurrency holdings and encouraging crypto transactions. Having said that, what do you think is the future of cryptocurrency?
Goldman Sachs is now making Bitcoin funds available to some high-end clients, Paypal has allowed users to leverage cryptocurrency holdings to pay its online merchants internationally, etc. This clearly indicates that cryptocurrency in the future will surely impact business operations.
Nonetheless, cryptocurrency has also gained a lot of attention from regulatory bodies. However, the administrative field is still trying to speed up with regard to major players in the virtual currency field. Yet, there have been enforcement activities and an updated focus around the regulation of crypto activities and users.
Criticisms Faced
One of the serious criticisms of crypto is that there is no inherent worth. In fact, the worth it has is the worth that the world gives it. Nonetheless, experts believe that this is applicable for global fiat currencies as even they have not received any gold standard.
Solid supporters for holding gold knew for quite a long time that outrageous printing of money would cause a devaluation in the currency. Since gold has a generally limited inventory and has truly been viewed as significant, they use it as a fence against inflation and a method for keeping the government away from their bank accounts.
Curiously, the absolute staunchest cryptocurrency users hold coins for some reason that individuals hold gold. The fundamental distinction between the two is the fresh blood of cryptocurrency, having no demonstrated history of long-term value.
Joseph A. Grundfest, Professor at the Stanford Law School also adds that cryptocurrency is a trustless system. Since it is not directly related to any government or state, people have a hard time trusting cryptocurrency.
However, Joseph argues that this is not the case with regard to future trading crypto. Cryptocurrencies rely on infrastructure, much of which is operated from China. So, chances are the Chinese government could introduce changes in cryptocurrencies by forcing its will on the data miners who keep them running.
What Next?
Despite everything, many countries have started adopting and legalizing cryptocurrencies. This indicates a positive attitude towards cryptocurrency as well as the future of crypto looks promising. In India, the Supreme Court overturned the crypto ban, yet regulations will soon come into the picture.
Not just India, many other countries that have effectively adopted cryptocurrency have put regulations in place to ensure economic viability and progress, without harming the interests of the public.
Just like we have heated discussions of how important it is to regulate artificial intelligence to ensure AI is used ethically and responsibly, similarly, regulations on cryptocurrency are vital too.
It’s time we use each technology responsibly as recently a lot of legal challenges are piling up on tech giants like Amazon, Google, Apple, etc. on the grounds of antitrust issues.
With regards to the future of cryptocurrency, we will definitely see more growth and adoption. Yet, with China’s ban on a cryptocurrency exchange, it is quite uncertain how things might turn out for cryptocurrency trading in the future. A ban from a strong and powerful nation is something we should ponder on. Are there certain aspects of cryptocurrency that we don’t know? Or the future of the crypto market is completely dependent upon its volatility?
Right now, it’s too soon to carve out or predict the future of cryptocurrency. We are yet to explore more about this growing field. Nonetheless, it is absolutely a change agent in the financial industry as well as for investors.
