Future of crypto in the next 5 years

Cryptocurrency has come a long way since the Bitcoin whitepaper was published in 2008. From a niche community building a digital cash network to a major worldwide asset class that is the envy of banks and investment firms, the landscape has changed dramatically.

So what’s next for the crypto industry? Where will crypto be in 5 years?

Crypto technology will become more advanced

In some ways, it is nothing short of a miracle that cryptocurrency has grown as much as it has between 2010 and 2020.

The ICO craze of 2018 raised approximately $15.7 billion for crypto projects. Now seen as something of an economic bubble, this trend has seen many projects with little or no unique selling proposition rake in huge sums as excitement continues to grow.

Like the net bubble of the ’90s, most of these projects failed, but the hype wasn’t entirely unfounded. Funding accrued based on the promise of what blockchain and crypto could potentially achieve, and that’s where the value lies: in the potential.

Today we don’t have to wonder whether blockchain will change things. We are seeing numerous real-world integrations of blockchain and crypto technologies proving that the technology is becoming practical.

For example, Fetch.ai is being used to optimize the performance of a smart city project in Munich. Europe’s busiest port, Rotterdam, now uses blockchain to track shipping containers.

Progress from here is anyone’s guess. There are talks about integrating blockchain into voting systems for safer elections, medical records systems, and many other applications. St. The Federal Reserve Bank of St. Louis released a statement praising some of the achievements of the decentralized finance industry, and we can expect to see continued advances in DeFi technology as time goes on.

Companies like Visa and Mastercard have taken a big step towards adoption by integrating crypto payments. Countries around the world are also considering introducing central bank digital currencies (CBDCs), a type of cryptocurrency issued and controlled by federal governments.

Within five years, crypto and its associated technologies seem likely to become much more intertwined with day-to-day operations in industries such as supply chain tracking, finance, manufacturing, information technology and more.

Crypto market value looks likely to rise

This is the kind of statement that can easily be misunderstood. There is no guarantee that a particular cryptocurrency will increase in value, even Bitcoin, which has exceeded expectations for years.

However, it may be easier to evaluate the direction in which the general market value of crypto assets is moving. The future of cryptocurrency investing is bright, with Bitcoin ETFs now offering more avenues for institutional investment than ever before and cryptocurrency becoming less volatile as the industry matures.

The amount of money invested in Bitcoin ETFs on May 21 was $300 million, indicating the purchasing power of heavy investors now involved in crypto.

Crypto may even surpass current figures within 5 years. Of course, it all depends on the regulations.

Regulations will affect the future of cryptocurrencies

One of the most talked about topics when it comes to crypto is international regulation.

SEC doubled the amount of lawsuits it filed against crypto projects between 2021 and 2023; most notably, it has sued Ripple and Coinbase, and plans to sue decentralized trading platform Uniswap are also currently being discussed.

US regulation against crypto has a huge impact on regulations worldwide; Small countries often take inspiration from SEC guidelines.

So how exactly might regulation affect crypto?

Crypto and Unlicensed Securities

Let’s take Ethereum as an example. SEC Chairman Gary Gensler recently stated that the SEC considers Ethereum a security, but certain precautions must be taken. If the ETH cryptocurrency is officially designated as a security, this would mean that exchanges selling the currency would be obliged to sell securities without a license.

Aside from decentralized exchange services that allow users to exchange ETH for other assets, buyers may also be legally liable. This will of course also be reflected in the DeFi industry, which is primarily built on the Ethereum network.

The SEC lawsuit against the Ethereum community is by no means a sure thing and is not even considered likely by many crypto users at the moment. But the examples serve to highlight the risk of crypto projects falling foul of national and international regulations.

In China, of course, selling and even mining crypto assets is completely illegal; The United Kingdom, on the other hand, prohibits UK companies from selling crypto derivatives to residents of the country.

Crypto enthusiasts are often concerned about the impact of regulation on the future of cryptocurrency. Of course, it’s worth noting that a complete lack of regulation could be just as damaging to the industry’s longevity as bad actors have free reign without oversight.

What will be the future of cryptocurrencies?

All the above factors we have mentioned so far are heavily interconnected. Considering the past few years, advances in crypto technology and adoption are likely to continue. If that happens, it would mean open season on crypto investing as more and more people look to make money, aided by developments like crypto ETFs.

On the other hand, if worldwide regulations were to heavily restrict the sale or development of cryptocurrencies, then there would be a major hurdle the industry would face, as this would deal a blow to both the market capitalization and the funds available for crypto and blockchain research in general.

Is crypto the future?

In our view, yes, crypto is extremely well positioned to play a significant role in key industries in the near future. It’s rare to see a new technology like blockchain and cryptocurrency adopted so quickly, and progress will likely continue that way.

The world’s governments know that their residents, industries, and even national banks are now investing in the crypto industry in one way or another, and it is hoped that by seeking a balance between overly restrictive and overly lax regulations, the industry will be allowed to thrive. protects its users from harm.

If technology, investment and regulation can find a balance over the next five years, there’s no telling what the future of cryptocurrency will bring.