In the seventies and eighties, Hollywood movies depicted dystopian worlds, where human society was completely different from what we have now. The only aspect that appeared in these movies out of those who have now is digital currencies. While they are not legalized in every country, some steps to this legalization were made. It all started with the introduction of Bitcoin, back in 2009.
Bitcoin is now officially 13 years old. Not every economist out there agrees with the role the concept of digital currencies will have in the future, still, they all agree that BTC is a key factor for the future of global economics. If you’re interested in learning more about this influence, be sure to visit widgetbox.com. All the trends we have today revolve around digitalization.
So, it is safe to presume that cryptocurrencies will make a significant chunk of the future. While BTC still holds the prime spot in this market, many are unsure whether it will be as important in the future. That doesn’t mean that it will disappear, but its influence will not be as it is today. Today, we want to present you with a couple of reasons why the future of BTC is not as clear as it may look. Let’s check them out.
1. The Competition
For almost a decade, BTC was the only major player in the market. But, when you take a look at it today, you’ll see that there are a lot of new cryptocurrencies, that have significant potential. We are talking about Ethereum, Ripple, and Cardano, just to name a few. The story about Dogecoin is pretty much a joke, and there is no real potential behind it. But, others can have serious improvements in the future.
Numerous papers provide us with some crucial information that says why the future doesn’t have to be as successful for BTC. Not to mention that the developers responsible for Ethereum, have started working on a completely new project. According to them, they want to implement a wide array of different factors that will make new cryptocurrencies much more environmentally friendly.
The next aspect we want to talk about is the concept of NFTs. For those who haven’t heard about this term, we are talking about digital assets that have entered the market recently. NFT stands for non-fungible token. The only difference between these and cryptocurrencies is that they have a visual aspect. Meaning, they are manifested as images, GIFs, and many more formats.
For this reason, they can appear to be much more interesting for a majority of people than basic digital currencies. If you take a look at some examples of NFTs, you’ll see that a high number of them have been sold on the market for high prices. In some cases, these prices have reached millions of US dollars. From what we can see, they have a massive potential that just needs to be unlocked in the future.
3. National Cryptos
If you follow all the latest trends on the crypto market, you’ll see that some countries have started thinking about creating their own national digital currencies. The global pandemic of COVID-19 has postponed a lot of work in this field. Still, some of them are on the road to launch them pretty soon. The most obvious example is the Chinese digital currency Yuan Pay, which was released in 2023.
Alongside Yuan Pay, there is some news about South Korea, Russia, India, and Germany, releasing their own. While there is no way we can say when these will be released, it is clear that the plans are in motion for quite some time. Since national currencies will become a part of the crypto market, chances are that some of them will have more influence than traditional ones, like BTC or ETH.
4. The End of Mining
For many people, the mining process was the first thing they have heard about BTC. In 2009, it was announced that this crypto will have 21 million coins. However, all of them will be mined through the next couple of years. When this process is complete, the currency will become much more stable, especially when it comes to the price. In 2023, 90% of these 21 million are already mined.
So, you can see that the room for mining in the future is minimal. Also, the process itself has become more complex than it was before. The reason is that miners will need to purchase some special equipment to do it properly. Plus, the competition is pretty steep. Mining on your own is not something that will provide you with many benefits. Instead, joining a pool will provide you with much more chances.
5. Security Issues
Last but not least, we would like to mention something that a vast majority of experts do not consider. We are talking about potential security issues. We all know the story about how it is impossible to crack down on the security system of the blockchain system. Still, that doesn’t mean that this will not be possible in the future. In fact, chances are that hackers will become more skillful in the future.
Maybe cracking these will be possible in a couple of minutes. We mean, there are no guarantees that it will remain untouchable forever. Thankfully, some developers openly speak about upgrading these systems constantly. Still, the problems with security systems can arise suddenly and create big problems. While it is unlikely that this will happen in the future, it is certainly advisable to be cautious.
In 2023, BTC is still a significant factor in the market. Without any doubt, there are no guarantees that this will be the case in the future. In this article of ours, you can take a look at a couple of reasons why this situation can change. Being aware of these scenarios can provide you with quality insight into what moves you should make in the future. Be sure to check them out and come with your own conclusion.