Recently, there have been many shocking developments surrounding the cryptocurrency industry. For instance, China recently took a firm stance against cryptocurrency trading, essentially banning both financial institutions and trading companies from providing services related to crypto. However, they have not stopped people holding these digital currencies, despite warning of the danger attached to them.
With significant changes and action like this, it is worth exploring the future of cryptocurrency. Is it destined to become the future of financial trading and a key part of the global economy as a whole?
The Rise In Speculative Trading
It’s clear that there has been an increase in speculative trading in recent months and this isn’t just tied to cryptocurrency. For instance, many people decided to invest in GME to stop Wall Street traders shorting it. This led to a massive rise in value for the company and many people saw significant gains after essentially starting with nothing.
Something similar happened with Doge coin at the start of 2021. Doge coin was originally a meme cryptocurrency, created to mock the crypto trend in its infant stages. However, it was embraced online and even gained the support of Elon Musk. Musk garnered significant controversy after investors noticed that his comments surrounding crypto could lead to a rise and fall in value. The most shocking example was the impact Musk had on Bitcoin after claiming that it wasn’t sustainable and Tesla would no longer be supporting it.
Speculative trading is an issue in the market, but it’s not tied to the future of crypto. So what is shaping the path here?
There have already been several instances where different cryptocurrencies have been divided into new options on the market. One example of this would be the Bitcoin Cash hard fork. This currency is now valuable in its own right and was designed to plug the technical weakness with Bitcoin itself. It’s likely that there will be more of these hard forks in the future because they are a great way to improve existing cryptos and respond to issues with currencies that have grown significantly in value.
We could also see the creation of countless new cryptos, some of which might climb to the top of the market. However, it’s worth noting that like any investment, investing in a new crypto always comes with a high level of risk. There are a lot more cryptocurrencies than most people realize and most reach a fraction of the value of the main players.
A Main Currency?
Cryptocurrency is still seen as a side currency. The value of Bitcoin is impressive but it’s not fully embraced or accepted by most financial institutions. Crypto isn’t backed by law and operates outside of the main financial markets. That’s part of what makes it so appealing.
To become a main currency cryptocurrency would need to be embraced as a main form of currency. You would have to be able to walk into a store and buy a product or service using your chosen crypto. This is slowly starting to happen and it’s possible in five years or more, cryptocurrency will be fully embraced. After all, the potential it provides is virtually limitless thanks to the blockchain technology at its core.