The Future of Bitcoin, Cryptocurrency, and Blockchain

Bitcoin Cryptocurrency

It’s safe to say that the first part of 2021 has been a watershed moment in the crypto industry’s development.

However, the industry is still developing and in its infancy. Trying to gauge the industry is tough in the long term. The blockchain industry is growing and developing and requires more and more professionals. Jobs in blockchain is a very popular request. Still, analysts will be watching issues like regulation and institutional acceptance of crypto payments in future months to better understand.

Exact predictions are difficult, so we’ve looked at the possible future of bitcoin, cryptocurrencies, and blockchain.

Possible Cryptocurrency Regulation

A crypto investor already needs to keep track of their capital gains and losses, but new proposed legislation might make it easier for the IRS to discover cases of tax fraud using crypto. Investors may find it easier to correctly record crypto transactions under the new guidelines, though.

By law, exchanges will be required to furnish 1099-B tax forms providing cost basis data to investors if the legislation is passed. The crypto tax filing burden will be greatly reduced as a result of this.

Cryptocurrency prices in already turbulent markets can be affected by regulatory statements. Due to market volatility, investing experts advise investors to limit their cryptocurrency holdings to no more than 5% of their whole portfolio and to never invest money they can’t afford to lose.

Numerous industry professionals agree that regulation is beneficial in the long run for the sector as a whole. Regulation that benefits the public is always a good thing. Because of this, people are more confident in crypto, but it’d be best to take our time and do it correctly.

Nonetheless, the current lack of regulation seems to be one of the attractions for people looking to make anonymous transactions.

Bitcoin’s Future Outlook

Because Bitcoin has the greatest market value and the remainder of the market generally follows its patterns, it’s a solid indicator of the overall crypto market.

The price of Bitcoin has been on a roller coaster ride in 2021. It saw a rise from a high of $60,000 in April to a low of under $30,000 in July. Bitcoin’s price has lately surged back up to $50,000. 

But how high can Bitcoin really go before it becomes obsolete? The history of Bitcoin may hold some useful lessons. Since 2011, the price of Bitcoin has experienced numerous large increases, followed by declines. In the short term, however, we expect BTC to be volatile, with long-term growth expected.

More Retailers Will Accept Crypto Payments

While most individuals don’t see the benefit of paying with cryptocurrencies right now, as more businesses begin to accept them, the scene may change. It’ll be a long time before spending Bitcoin on products or services is a wise financial move.

Still, increasing institutional adoption could lead to more everyday use-cases for everyday consumers, which could impact crypto values in the long term. Buying cryptocurrencies as a long-term store of wealth offers no guarantees, but the more “real world” applications a currency has, the more likely usage and value will rise.

Crypto Volatility

Cryptocurrency is still a new and risky investment with little history on which predictions may be based. We can guess what value it will have for buyers in the months and years to come (and many will). The truth is that nobody actually knows, regardless of what a particular expert thinks or claims to know. As a result, you should only invest money you can afford to lose and focus on more traditional investment strategies for long-term wealth accumulation.

Never prioritize your crypto investments over other financial goals, including retirement savings or paying down high-interest debt. Keep your investments small.

Blockchain Could Aid Cybersecurity

Because blockchain is a new technology, projections regarding its potential are divided. Seventy percent of respondents to a TechRepublic Research survey stated they had never used blockchain before. However, 64% of those polled said they expect blockchain to have some impact on their industry, with the majority expecting a favorable outcome.

Following is a forecast provided by Gartner’s Trend Insight Report:

  • By 2022, only 10% of companies will use blockchain to make significant changes.
  • At least one creative blockchain-based enterprise will be valued at $10 billion by 2022.
  • The added value of blockchain to a company will reach $360 billion in 2026 and $3.1 trillion in 2030.

Among the most promising development areas for blockchain technology is cybersecurity. Data tampering is a problem that affects companies of all sizes. When combined with other cutting-edge security features, blockchain technology can be applied to keep data safe while also enabling users to verify the legitimacy of a file.

Hence, the growth of cyber security may create more jobs in blockchain.

Final Thoughts

As the acceptance of cryptocurrencies, blockchain, and NTF grows, the need to invest with caution becomes even stronger.             

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.