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The future of cryptocurrency: Top trends that will change the world by 2030
Cryptocurrencies are no longer a gamble for cypherpunks and tech enthusiasts. The problems of our traditional financial system, as well as the way we live our lives, have long been indicating a need for upgrades.
While people are currently choosing to buy Bitcoin for its profit potential, others are already looking a decade ahead, trying to understand how this new concept can completely change the way we live our lives.
There are certain trends that you should also be aware of as we enter what could very possibly be the most turbulent decade of our lives. And in this article, we introduce them in short. So kick back and get ready to delve in. Let’s get started.
The Metaverse
The somewhat futuristic idea of a completely virtual world is slowly gaining ground, as cryptocurrencies continue to build out a scalable economy on the web. But that’s not the only thing that a Metaverse needs to operate successfully. Another growing trend is that of NFTs, otherwise known as non-fungible tokens. In short, NFTs enable users to create unique versions of everything physical, making it easy to trade it on the web, and thus adding an element of scarcity.
Due to this, we already see several decentralized platforms selling digital real estate (Decentraland, Sandbox, Etherland) while the most popular application is currently the sale of digital art. Both form the foundation of a smart contract-based economy which should become the norm within the Metaverse by 2030.
If you wish to learn more about the Metaverse, as well as understand the application of cryptocurrency projects to help it scale, we recommend reading this article.
Institutional adoption
Over the past year, we have seen a lot of institutions showing interest in and buying Bitcoin with their cash reserves. The trend did not come as a surprise to experienced investors with an understanding of Bitcoin’s fundamentals, as it was only logical to eventually see this momentum build up.
It started with Microstrategy, a publicly-traded software company. Its founder and CEO, Michael Saylor, did not only allocate 95% of the company’s liquid cash reserves into Bitcoin but even took an additional $1,65 billion in a loan form, in order to buy more. Shortly after, we saw the likes of Square, Tesla, and others follow a similar path.
Why is this important? Well, in a government operated but state-owned institutions, this move signifies the first step of the adoption curve. What comes next will be even more radical. Sooner or later, we will see governments buy into Bitcoin with their cash reserves in an attempt to not become victims of a potential dollar collapse through hyperinflation. As soon as the popular cryptocurrency attains geopolitical significance it will no longer be a race for profit, but rather of economic survival. As such, the price of Bitcoin will not be the primary source of motivation for the countries that decide to buy-in.
Unstable economy
What does the future hold for cryptocurrencies if the current economic uncertainties continue to play out? In most cases, they will become the default option for wealth storage and value exchange.
That’s right. The massive inflation that we are about to experience as a result of the $10+ Trillion of bailout packages, paired with the never-ending lockdowns have already made many people look into Bitcoin. This is especially true for institutional investors who wish to preserve their wealth. And much like social media completely changed our way of communication towards the more efficient, so cryptocurrencies will completely change the way we see and interact with money.
Of course, the instability of the economy is nothing new. Ever since 1971, when gold stopped backing the US dollar, we have seen a steady decline in the value of money (an unseen tax if you may) that further separates the rich from the poor, creating a society that lacks financial balance. The first “hit” of this was observed in the financial crisis of 2008, and many claim that we have never recovered since. One of these people is Yannis Varoufakis.
Wrapping up
While the three trends we discussed above are certainly not the only trends you should be aware off, they will play the most important part in the change of our world within the next decade.
To summarize, here are the trends we discussed:
- The introduction of the Metaverse (decentralized virtual realities)
- Institutional adoption, which paves the way for government adoption
- The inability of governments to control a failing economy
If you wish to learn more about each point, make sure you continue your research, looking into each and every point in more detail.
We hope you found value in this basic introduction and take things over from here.