Cryptocurrency is a digital currency or digital asset, which is used for making payments as well as to store funds for a rainy day. This type of digital asset can be of various types, such as Bitcoin, Altcoin, Litecoin etc. Each of these can be traded for each other, as well as for money with the right Bitcoin value.
Due to this reason, a lot of value is associated to these virtual currencies. Each and every day, a lot of fluctuations occur in the prices of cryptocurrencies like Bitcoin – which makes investors anxious about the future of these digital currencies.
There could be some regulation on cryptocurrencies
Cryptocurrencies like Bitcoin are not legal in quite a few countries but even in all those nations where this kind of digital currency is getting acceptance, some kind of regulations are inevitable in the short or long run.
The Indian government, for instance, is already making attempts to find out a way to bring cryptocurrencies like Bitcoin under the regulatory framework. It is coming out with the proposed Cryptocurrency Bill – similar to many other nations across the globe. In India, crypto exchange heads agree that some kind of regulation is actually required for proper overseeing and management of crypto assets. Only time will tell what kind of regulations cryptocurrencies will have to abide by.
According to market analysts and investors, the growth in the popularity of cryptocurrency and a surge in its demand (that refuses to wane) will lead to a greater number of regulations. With so many infamous Bitcoin brokers in existence at the moment, it is becoming quite tough for Bitcoin traders and investors to ensure safety of their money. Naturally, there is a rising demand for more laws. This is likely to make government organizations come up with a greater number of regulatory measures for Bitcoins and other cryptocurrencies.
There will be a growth in alternative digital currencies like Altcoins
At the start of the year 2021, over 70% of the market share of all cryptocurrencies was owned by Bitcoin. However, in January 2022, its share was somewhere in the range of 40 % – with a greater number of digital currencies and coins beginning to gain more and more power. Other cryptocurrencies like Ethereum, Solana, Cardano and Altcoins are getting wider acceptance and a greater number of investors are purchasing them. This is due to the rise of so many projects being constructed on the strength of these alternative platforms.
Due to this reason, and many other factors – such as the launch of the Metaverse, Defi projects and the boom of the NFT market in the cryptocurrency industry, Bitcoin is not the dominating currency anymore the way it did in the initial days. It is a truth that – based on the kind of blockchain project that catches your interest you should purchase your cryptocurrency. For instance, if you are more interested in NEFTs, it can be a sensible decision to choose Ethereum over Bitcoins.
It is also a good idea to set up an account with some top cryptocurrency exchanges, which lets you purchase alternative cryptocurrencies and offers a safe platform to help you manage all your cryptocurrency assets.
Fake Bitcoin influencers are likely to come up in more numbers
The crypto industry is already witnessing so many people who are prepared to scam BTC investors at the drop of a hat. It is expected that there will be a growth in the number of fake Bitcoin influencers across the world in the days to come.
Also, it might not be sensible to follow the usual Bitcoin predictions and influencers either. Some of their statements and opinions might prove to be right, but in the long run they are unlikely to be useful necessarily.
Bitcoin-related services will be launched by banks across the globe
Centralized institutions do not have a warm relationship with Bitcoins and other digital assets that are decentralized. However, centralized banks, of course, would like to benefit from the enormous range of opportunities offered by digital currencies. At the moment, top banks across the globe are undertaking various projects that reflect on the decentralized form of digital currencies and are setting up such programs as per the needs of customers.