The tale of cryptocurrencies has been full of ups and downs, but the bounce back from the 2018 crypto crash was of such strength that it took many critics by surprise. Cryptocurrency has been embraced by some big players in tech, finance, and other industries, indicating that it’s technology that’s here to stay. But how will it change over the next five years? This article examines the next big trends in crypto, ensuring you can keep your finger on the crypto pulse.
The future of cryptocurrencies is guaranteed to be interwoven with that of AI as these two technologies continue to grow in a symbiotic relationship. Intelligent machines equipped with natural language processing and machine learning will increasingly be able to play the role of accountant for most of the general public’s accountancy needs. Concepts such as the crypto cost basis that are challenging for human minds will be trivially analysed by artificial intelligence and real-world accountants will be increasingly relying on AI in their analyses.
At the same time, chatbots will become the brokers of cryptocurrency transactions. AI-powered chatbots have exceptional power to analyse data, so each chatbot can be well equipped with current information on the relative strengths of markets. This will enable chatbots to make the best decisions based on data-crunching algorithms, taking a lot of the risk out of cryptocurrency trading.
After a slow start where cryptocurrency was embraced primarily by those outside of the mainstream, the big players of the tech world are beginning to recognize the power of cryptocurrency and get involved. In 2019, Facebook announced Libra, their own cryptocurrency which enables Facebook users to bypass things like PayPal and make purchases with minimal fees. Bitcoin is being embraced by the tech giants and e-commerce is going to increasingly rely on cryptocurrencies as an integral part of its business model. The market for cryptocurrencies is guaranteed to grow as the tech and finance giants get on board.
JP Morgan and Fidelity, an asset management group based in the US are two examples on the finance side of corporations hitching themselves to cryptocurrency. This is a trend we don’t expect to taper off any time soon.
Cryptocurrencies emerged as a way of decentralizing finance and traditionally they were perceived as a thorn in the side of hegemonic power. Governments and financial institutions sought ways to undermine the uptake of cryptocurrencies and they used their sway over financial regulatory industry bodies as a way of limiting their growth. One growing trend we see in the crypto market is the discovery of solutions to these regulatory issues.
Recently, cryptocurrency has been increasingly accepted by the mainstream, and governments and financiers are acknowledging crypto is here to stay. This has meant, to some extent, an undermining of the independence of cryptocurrencies as governments find ways to manage them and although this made lead some away from the crypto-anarchic visions they originally had, it means that cryptocurrencies are being perceived as legitimate investments and designated secure assets. Over the next five years, regulatory issues with cryptocurrencies will be continually diminished and the market for currencies will grow alongside this.
Blockchain has always been the technology at the heart of cryptocurrencies and its fate has often been perceived as inextricably interlinked with that of crypto. When crypto crashed in 2018 many saw it as a death toll for blockchain technology, but cryptocurrency revived as did blockchain tech, and the applications of blockchain extend far beyond cryptocurrencies.
Walmart and IBM are two corporate giants utilizing blockchain to secure transactions and record keeping. For the next five years, blockchain technology will be increasingly used in the Internet of Things (IOT). Superior encryption enabled by blockchain technology makes it perfect for the diverse networks required by the IOT. As a network made up of connected devices the IOT provides many points of attack for cybercriminals. But blockchain encryption is decentralized, which means it can’t be hacked by a single point of failure.
As AI continues to advance, regulatory issues are resolved and blockchain technology infiltrates the IOT, the role of cryptocurrency is guaranteed to grow. The future’s bright for crypto.
Michael Dehoyos is a content marketer and editor at Dissertation Writing Service and Origin Writings. When he isn’t writing about the latest tech news, he gets away from it all hiking in the mountains near his home.
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