Everyone is talking about cryptocurrencies and their future. If you aren’t familiar with the term, cryptocurrencies are digital tokens that are designed to be used as a medium of exchange. They can be purchased or sold like stocks or other assets, but they usually have a much different purpose. 

The Future of Cryptocurrency in the Next 5 Years: What Will Happen and What to Expect

For example, bitcoin is the most famous of all virtual currencies because it is the first one that was created and has sustained its value for so long. Moreover, after the initial release of bitcoin in January 2009, over 700 alternative tokens (known as “altcoins”) have been created. Each one has a slightly different use case and target audience. This article covers everything you need to know about the future of cryptocurrency in the next 5 years – what will happen and what to expect from this new asset class moving forward.

What Is Causing the Rise in Cryptocurrency?

There are numerous reasons why we are seeing such a rise in cryptocurrency in 2018. First and foremost, the technologies behind them are becoming more accessible. Major companies like Microsoft, Apple, and Google have introduced support for altcoins and cryptocurrency exchanges. This means that a lot more people can take advantage of these currencies and their benefits. The second reason behind the rise is that countries are beginning to see the advantages of this new decentralized system. 

This is particularly true of the financial sector. Many governments are realizing that blockchain technology has the potential to transform their financial systems and reduce costs. Furthermore, the financial industry is being hit by the rise of fintech companies that provide financial services and compete with traditional banks. This is encouraging governments to look into how they can use cryptocurrency to create new systems that can compete with and beat fintechs.

The Future of Bitcoin and Its Culture

The first cryptocurrency and the one that kicked off the frenzy was bitcoin. It exchanged for around $900 per token at the beginning of 2018, and its total market capitalization was about $150 billion. The first thing to note about bitcoin is that it is not controlled by the government. In fact, it is completely decentralized and has no central authority. This is one of the reasons why it has become so popular, but it also means that it has no inherent value. The rate of bitcoin is decided in basic terms via way of means of deliver and demand.. If more people want to buy it, then the price will rise. 

Conversely, if more people want to sell, then the price will fall. Unfortunately, this means that there is no accurate way of predicting how the price will change. Unfortunately, there are also several scandals surrounding bitcoin, and this is likely to slow its growth in the future. The first scandal is that only 21 million bitcoins will ever be created, and an unknown group of people already owns around 17 million of these. To make matters worse, it is believed that these people will try to hoard them in order to increase the value of their existing tokens. This may cause the price to crash if it gets too out of control.

The Future of Ethereum and Smart Contracts

The next cryptocurrency on our list is Ethereum. Like bitcoin, it is decentralized and does not rely on a central authority. The difference is that it is also a Smart Contract platform that can be used to create applications. Ethereum allows developers to create decentralized applications that run on the blockchain. This means that the applications are not controlled by any one person. 

They are also completely transparent, and there is no need for a middleman. Unfortunately, the technology is still in its infancy, and it will take some time for Ethereum to really take off. In addition, it is not controlled by any one government, which means that it can be used by anyone. This is each a blessing and a curse. It can be extremely helpful but also pose a significant risk to people if the technology is hacked.

The Future of Ripple and XRP

Ripple is a very different kind of cryptocurrency. It is centralized and has been created by a company known as Ripple Inc. This has caused many people to call it a “coin” instead of a “token” because it does not truly meet the definition of a cryptocurrency. Nevertheless, Ripple is the most popular cryptocurrency that is connected to banking and financial institutions. It is designed to be an instant and cheap way to transfer funds between countries. 

In fact, a number of banks, including Banco Santander, have already adopted Ripple as a means of transferring money. Unfortunately, this also means that Ripple is not decentralized and not as trustworthy as other tokens in the marketplace. It is also not very transparent because banks prefer to keep the transactions private. Unfortunately, there is also some speculation that Ripple is a security and not a cryptocurrency. This is because the token has a regulator and is controlled by a company. If this is the case, then it is highly likely that Ripple will be heavily regulated in the future.