To a casual observer, the cryptocurrency market is exciting, mysterious, and scary. The pioneer of cryptocurrency, Bitcoin, has dramatically surged in value. In recent months, it steeply dropped and was picked back up again. There are some financial advisers who are still skeptical of the digital currency. However, it is impossible to ignore the huge amount of money that is invested in the field. Needless to say, cryptocurrency is here to stay.
Experts believe that in 50 years, cryptocurrencies will replace about 25% of the national currencies. After all, the way they run is more efficient. The increase in the investment in cryptocurrencies in the past few years shows the legitimization of a new asset class that is emerging alongside the global economy. In the coming years, there will be an increase in new investment vehicles from cryptofinance.
There is no denying that cryptocurrency has disrupted the banking industry. The lack of oversight and intermediaries in cryptocurrency and its operating on peer-to-peer transactions is what makes it so attractive to investors. The fees for financial advisers and banks are cut out from these transactions.
In the next couple of decades, the future of the commerce industry will be shaped by cryptocurrency. There will be more exponential value and less friction between the sellers and buyers of all products.
However, up until now, blockchain has made the users essentially anonymous allowing them to evade their civic duty of paying taxes. This will change and the government will play their role. They will provide prudent regulations that will encourage and accept innovation with cryptocurrencies.
