What is the future of cryptocurrency after COVID-19? As an investor, you might be worried of what will it be. In this article, we will discuss what changes are expected in the cryptocurrency market and what coins are predicted to have a bright future in 2021.
Crypto Market Predictions
Year 2020 has put the world in the most in a whirlwind. With concrete effects of the pandemic, the economy has generally followed an unpredictable trend. As experts start to understand the dynamics of this new normal, we give you the cryptocurrency market predictions for 2021.
Bitcoin will continue to govern
Despite having a painful fall on the onset of the pandemic, Bitcoin speedily recovered from 3,000 USD to 10,000 USD. For the rest of the years, it generally maintained, if not increased, value closing at around 25,000 USD for 2020. The stability given by this coin is unprecedented in the short history of cryptocurrencies. Experts say that this will continue to be the most reliable digital asset to invest.
More and more cryptocurrencies come into play, but there is still nothing beating this coin that started it all. It is almost as if cryptocurrency and Bitcoin has been synonymous to market players. Safe to say, whatever the future of cryptocurrency is for the next year, Bitcoin is here to stay.
Stablecoins on the rise
Stablecoins seem to be the best compromise we have between the digital speculative value of cryptocurrencies and real-world economic value of flat currencies. With its characteristics, more and more people are putting their bets in this type of digital coins. From its introduction, it has been rapidly accepted and adopted by market players. The utilization of Stablecoins seems to serve more business sense to those who remained skeptical about cryptocurrencies.
Safe to say, its sharp rise is not only a fad. It has concrete basis to support its value. It will continuously serve its niche to bridge for incumbent payment processors.
Tax implementation to tighten
One serious govern concern upon the popularity of cryptocurrencies is the tax implementation. Having a decentralized consensus, the accumulation of this digital assets was not governed by any tax laws. However, the Internal Revenue Service (IRS) has been making several adjustments indicating the seriousness of how tax charges will be dealt with moving forward.
Taxes, however, will not be US government issue alone. With cryptocurrency market players operating all around the globe, it is expected that other governments will be starting to develop their own implementation guideline as well.
Blockchain expansion of use
As a matter of fact, there are already certain cryptocurrencies that proved how the blockchain technology can be innovative and useful in fields outside financial services. The list of this field will continue to expand with the hope of the blockchain network penetrating the mainstream and wider range of the economic sectors. With the innovation needed during the pandemic, healthcare and transportation may be two sectors that will utilize the blockchain technology.
Cryptocurrencies with bright future
If you are asking what is the future of cryptocurrency to look for the right coins to invest in, here is a list of the best coins that is predicted to continue to make names in 2021.
This coin does not need much explanation. With the stability shown in 2020, Bitcoin is here to stay. It continues to be widely acceptable. With a conservative prediction of reaching up to 30,000 USD, it may be a good idea to hold on or add Bitcoin coins in your investment portfolio.
Certain experts give a fearless prediction of the Bitcoin value reaching up to 100,000 USD in 2021. The City Bank even released a forecast that it will grow 15x its current value. This might sound like too good to be true. But we know how Bitcoin gave investors surprises in unprecedented ways.
The Ripple company has blown away players with its innovative ecosystem which has a digital platform, bank networks, and a native coin – XRP. The creators of this system were genius to package to XRP with their services that lead to benefits including extremely low exchange rates and instant confirmation for transfers. This is possible due their own validation process that bypasses the central bank.
To add to the credibility of Ripple, their network includes banks and other financial institutions with big names. RippleNet’s impressive roster of membership includes the Bank of America, SBI Holdings, Santander, American Express, Royal Bank of Canada and Moneygram. Knowing this will make you imagine what is the future of cryptocurrency with Ripple. It must be a positive one.
Litecoin remains to be the silver to Bitcoin’s god. It features the best characteristics of Bitcoin and modified some troublesome ones for certain consumers. The 10-minute transaction time in Bitcoin is only less than 3 minutes in Litecoins.
What makes the future bright for this coin is that it enables mining using less sophisticated computers. This opens another window of opportunities to small players. The PC you own know might be enough to meet its mining demands! With a supply ceiling of 84 million and a high block reward of 25 LTC, the future of cryptocurrency is bright with Litecoin.
What is the future for cryptocurrency? In the case of Ethereum, game changing might be an understatement to describe it. Ethereum took a leap further by introducing a new way to decentralize the internet by creating worldwide system of nodes that can replace servers. In simple terms, it innovated technology by introducing a system that can utilize a single computer for the whole world.
With the utilization of what they call as smart contracts, developers are now able to launch desktop and mobile decentralized applications behind blockchains, opening a wide window of opportunities and possibilities for the digital arena. This ultimately ensures that millions of developers and companies will continuously need Ethereum. The future of cryptocurrency in expanding into the mainstream might just have started here. Discover more about the future of cryptocurrency here!
Predictions are never 100% accurate. However, the above statements answering what is the future of cryptocurrency are given by experts with an extremely high degree of confidence. With the current trends and predictions, cryptocurrency investors need not to worry about losing the market altogether. Just play your cards well, be smart on which cryptocurrency to invest and the future must remain bright.