02-26-2023 icon

Inside scoop on where cryptocurrency will be in the next five years

By Lucy Adegbe

As the technology industry advances, we’ve seen the development of several cryptocurrency-related projects such as decentralized finance, non-fungible tokens, Web 3.0, and several others. Currently, Artificial intelligence seems to be leading the way.

While this happens, the major question in the minds of the teeming crypto enthusiasts is where crypto will be in the next few years. Will it be soaring? Will investors and project owners keep battling with the crypto winter? Will crypto vanish?

In the past year, we saw several crypto projects crash. From Terra/LUNA to Celsius, Three Arrows Capital, Voyageur, and several others. All companies filed for chapter 11 bankruptcy. The effect was far-reaching and prompted the crypto winter.

When the industry thought it had seen it all, FTX, which was the second-largest crypto exchange by trading volume, came crashing to the ground. The contagion was drastic. Projects with ties to FTX and its sister company, Alameda Research, sank.

Right now, the concepts of booms and bubbles seem strange to crypto. With over 3000 crypto projects packing up in 2022 alone, it appears that only the strong will make it. No wonder crypto evangelists will say the strongest projects are built during the bear market. 

All the happenings in the last year such as the numerous hacks, the bankruptcy cases, and even the bear market may appear as though we’re going to see crypto vanish into thin air.

Hell no! All these will pave the way for factors that’ll shape the future of crypto.

A closer look at the future…

To many, the future of crypto is uncertain. It shouldn’t be. However, the future of crypto is subject to various factors such as government regulations, technological advancements, and market adoption. However, many experts believe that cryptocurrencies and blockchain technology have the potential to revolutionize various industries and reshape the global economy. 

Some of the potential benefits of crypto include increased efficiency, lower costs, and greater accessibility for individuals who are unbanked or underbanked. Nevertheless, the future of crypto will depend on how well it can address current challenges such as scalability, security, and environmental sustainability, as well as how well it can integrate with existing financial and legal systems.

It’s important we take a look at some factors that are likely to shape the future of cryptocurrencies. These factors include:

  • Adoption: Widespread adoption of cryptocurrencies by individuals, institutions, and governments. Just as is the case with Mastercard, Pay Pal, and El Salvador.
  • Regulation: Development of clear and comprehensive regulatory frameworks to govern the use and trading of cryptocurrencies. The Financial Conduct Authority, U.S. Security and Exchange Commission are examples of two bodies that are working to achieve this.
  • Technology: Advances in blockchain technology and the development of new cryptocurrencies with improved features.
  • Security: Improvements in security measures to protect against cyber attacks, theft, and fraud.
  • Environmental concerns: Development of more eco-friendly mining and transaction processes to address concerns about the ecological impact of cryptocurrency.
  • Interoperability: Integrating different cryptocurrencies and blockchain networks improve cross-chain functionality and facilitate seamless transactions.

The future of money or maybe not…

It is difficult to predict the future with certainty, but cryptocurrencies have shown significant growth and potential in recent years. While some believe that cryptocurrencies have the potential to become the future of money due to their decentralized nature and other advantages, others remain skeptical due to concerns about volatility, regulation, and adoption. 

Ultimately, only time will tell whether cryptocurrencies will become the dominant form of money in the future.