2021 was, indeed, the year when cryptocurrencies crossed a new frontier. Many experts even position it as a year of crypto “breakthrough,” after which this type of digital asset ceased to be a subject of niche interest and became a popular topic of discussion among the broadest masses of the population. First of all, this situation arose due to the establishment of a new record price of Bitcoin in the spring of this year. Be that as it may, the positive dynamics in the development of cryptocurrencies could not go unnoticed. Today, aspiring and established investors are trying to figure out what the future of cryptocurrencies will be to use this information to their advantage. Let’s also try to understand this issue based on the ideas of experts regarding the direction in which the cryptocurrency market will move.
Scenario one: State regulation.
First of all, cryptocurrencies gained enormous popularity among the general population because they were completely independent. No state claimed the field of crypto payments and did not regulate their circulation by any legislation. However, now that cryptocurrencies have become impossible to ignore, many states are beginning to promote narratives about crafting legislation to regulate them or even creating official national cryptocurrencies as an alternative to independent ones. The prospect of regulation is welcomed by the vast majority of crypto-investors who use virtual coins because of their convenience and potential. In turn, it is quite natural that those who resort to payments in this format to avoid taxation or commit cybercrimes are strongly opposed to such developments. Thus, the prospect of extending government regulations to cryptocurrencies may be positive; however, in order for such a result to be achieved, it is necessary for these regulations to be transparent and fair.
Scenario two: Adoption in the private sphere.
Cryptocurrencies have come into the lives of people from the private sector. Naturally, no matter how much states try to regulate them, it is the private markets where these currencies can unleash their potential to the fullest. We already know examples of companies that have announced a course for the wider adoption of cryptocurrencies. For example, in early 2021, Tesla announced its decision to accept Bitcoins as a means of payment for their products. Although this decision was later revoked, it set a precedent for other companies to follow suit. Experts believe that, over time, large companies will begin to accept payments not only in Bitcoin but also in other reputable cryptocurrencies, such as Ethereum. In addition, major fintech companies are also likely to start using digital currencies more widely in their transactions, introducing the possibility of token transactions. Thus, most experts agree that, in the near future, cryptocurrencies will increase their importance in the private sector, becoming acceptable means of payment and more for key corporations around the world.
Scenario three: Solidification of positions on world exchanges
Today, crypto is already an important asset in world markets. Most brokerage organizations allow you to trade them both directly and through a variety of futures and other derivatives. For example, on the https://nsbroker.com/currencies, you can trade CFDs on cryptocurrencies using their price fluctuations without having to create e-wallets and purchase real tokens. However, currently, all trading transactions taking place in the markets are carried out with the involvement of individual cryptocurrencies. In turn, experts predict that if the role of tokens in world markets continues to be as significant as it is today, it is highly likely that leading exchangers will introduce an exchange-traded fund (ETF) for cryptocurrencies. It will be a kind of basket of cryptocurrencies whose movement will reflect the general situation in the market of virtual money transactions. Some of the world’s most influential organizations, such as the US Securities and Exchange Commission, are already hinting that such a scenario is highly likely. If such a fund is introduced, this event will change the approach to cryptocurrency trading operations forever.
The three scenarios described above do not exhaust the full range of potential ways in which cryptocurrencies may develop. Each of them can occur separately, or they can all occur simultaneously (which is more likely, because these forecasts relate to different fields). Be that as it may, the cryptocurrency market is definitely not planning to stand still. It had come a long way from the introduction of the first recognizable cryptocurrencies in 2009 to the moment when the price of Bitcoin crossed $ 60,000 in April 2021. Such assets simply cannot disappear from people’s lives without a trace. Therefore, regardless of the scenario in which the cryptocurrency market will develop in the future, one thing is certain: virtual coins will not lose relevance in global markets soon. Therefore, it is important to seize the opportunity to profit from their dynamics while it is possible.