Investors, businesses, and policymakers are all playing a role in shaping the world around cryptocurrency as we know it. After more than a decade of conversation around this controversial asset class, future trends in cryptocurrency suggest it’s only growing. Despite being on pace for growth, the where, when, and how are all up for discussion.
If you’re considering buying and selling cryptocurrency within the next twelve months, here are the cryptocurrency trends to be aware of.
Bitcoin Market Dominance
Bitcoin will remain the dominant cryptocurrency for the foreseeable future. Despite not being as efficient as competitive coins like Ethereum, Bitcoin’s price trajectory will likely continue upward.
Arrival of Crypto ATMs
The crypto ATM is a popular and convenient way to buy cryptocurrency. They allow anyone to buy and sell at a global level. Accessibility to crypto assets continues to expand, shortening the distance between traditional finance and the digital.
Crypto Exchange-Traded Funds
Expect to see more cryptocurrency ETFs in mainstream investment circles, with potential changes to come, including in-kind creations and staking. This is a potential way to reduce the risk surrounding cryptocurrency.
Search for Greener Crypto Projects
Environmental sustainability has become a major priority for cryptocurrencies. Not only is there regenerative finance, or ReFi, targeting ecological restoration projects through blockchain, but cryptocurrency could also be on the verge of being integrated into global environmental goals with public and private partnerships supporting a greener future for crypto.
Unbalanced Regulatory Environment
Cryptocurrency is regulated differently depending on the area of the world you are in. The fragmented regulatory environment worldwide has impacted emerging markets and economies, with some countries supporting cryptocurrency trading and others forcing an outright ban.
More Regulations Maturing the Market
More regulations surrounding crypto is not necessarily a bad thing. For investors, the bright side is that regulations typically offer more protection and foster growth while encouraging more investment in the space.
Further Exploration of Blockchain Technology
Governments, corporations, and non-profits are exploring blockchain as an efficient and transparent way to send and receive funds.
If adopted at a global financial level, this could solidify cryptocurrency’s role worldwide.
Decentralized Finance Is Flourishing
DeFi, decentralized finance, uses cryptocurrency and blockchain technology to disrupt traditional banks. DeFi can eliminate intermediaries and provide faster, more affordable financial services, providing individuals with loans, insurance, and blockchain-based savings accounts.
Stablecoins Will Grow to Be More Stable
Stablecoins offer security in a volatile market. Many stablecoins are pegged to fiat currencies or similar assets. They provide a way to make smooth transactions, including at an international trade level. They are a key category of cryptocurrency to search for when banking at a crypto ATM.
More Cross-Border Transactions
Cryptocurrency is a fast, cheap way to transfer money internationally with very few fees, if any. Crypto ATMs can help with this. They allow one user to send money to another in different countries while navigating around the costly traditional banking systems.
Central Bank Digital Currencies (CBDCs)
Central bank digital currencies are being developed and rolled out in various countries, modernizing payment systems and promoting crypto inclusion. Some 134 countries are presently exploring digital currency projects, from explorations to full-scale launches planned this year.
Privacy and Centralizations Are Controversial
As national economic policies are reshaped or challenged by cryptocurrency, and existing financial systems are on track to be forced to integrate crypto assets within them, expect more intense debates surrounding privacy and centralization in areas where the government wants strict control.
Assisting Underbanked Populations
All over the world, there are regional populations where traditional banking is not appealing, not offered, or is too expensive. Cryptocurrency initiatives target these areas, offering underbanked populations a secure, low-cost alternative.
More Dispute Resolution Mechanisms
Blockchain networks are growing. More users can mean a stronger need for on-chain governance systems and smart contract-based arbitration.
As disputes arise in decentralized ecosystems, there’s been more push to offer conflict resolution services sans traditional legal intervention.
An Interest in Crypto From Real Estate
Many real estate investors have shown an interest in crypto and using it to allow for fractional real estate ownership. This may make this type of investment more accessible for the average person.
Expanded Services at Crypto ATMs
Most brands’ crypto ATMs are fairly basic by design. They will undoubtedly increase in complexity in the coming years as CBDCs are introduced, NFTs may or may not be accepted as a crypto-adjacent asset, and AI is integrated into cryptocurrency trading.
AI-Curious Cryptocurrency Features
AI has not had a significant impact on the world of crypto assets. AI tools can improve market analysis and recommend specific trading strategies in the face of the data. For investors, AI can make transactions smarter and more efficient.
