With the advent of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, cryptocurrency is gradually becoming “the new cash”. Many transactions are now being made easy, hassle-free, and cost-effective. As they gradually penetrate the global economic system many are concerned about its future.

What is Cryptocurrency?

Cryptocurrency is a digital (virtual) currency that is encrypted through a complex method called cryptography, which serves as its security. Hence it is difficult for it to be duplicated or counterfeited. Cryptocurrencies are not regulated by financial authorities such as The Central Bank. It is rather a decentralized monetary system, whose control and regulation is effected through blockchain technology.

Due to its decentralized system, cryptocurrencies are immune to the influences and manipulation of government (they cannot control its circulation and production). Bitcoin emerged as the first known blockchain cryptocurrency, gaining fame globally. With time, however, others emerged some of which are Ethereum (ETH), Dash (DASH), Z-cash (ZEC), Litecoin (LTC) among others.

Cryptocurrency History

Although cryptocurrencies such as Bitcoins appeared recently, the idea of cryptocurrencies very certainly not a recent one. Various cryptocurrencies such as Electronic Cash and B- money were developed, but they had a major obstacle which impeded their progress, this is singular issue was; how to avoid the double-spending problem i.e. the using of a cryptocurrency twice. There was a need to prevent it from being duplicated and counterfeited.

In the early 2000’s, however, the first breakthrough seemed to have occurred with regards to this problem, because the first popular decentralized currency surfaced. The breakthrough came by way of the very popular Bitcoin, in precisely the year 2009, packing features which resolved the prior issues former cryptocurrencies faced. Bitcoin has a very secure system known as the blockchain technology which prevents it from being duplicated or used twice. The emergence of other cryptocurrencies hereafter followed one of which is the Litecoin(LTC) which was released in the year 2011.

What Does the Future Hold for Cryptocurrencies?

The decentralized and encrypted nature of cryptocurrency has made a rapidly growing and very recognized means of payment globally. However, one basic feature of the cryptocurrency, its finite supply, has caused a growing concern among many about its future. Many express optimism about its future prospects while others are pessimistic about it. Many counties such as the United States, the United Kingdom, and Australian have accepted the use of the cryptocurrency, many are hopeful to the possibility of the currency gaining acceptance and usage in more countries of the world.

Popular Optimistic Predictions

A number of predictions have been made with regards to the future of the cryptocurrency some gaining popularity.

Lori Beer, J.P. Morgan Chase CIO 

Blockchain will replace the existing technology.

Kim Dotcom – Advises his fans to buy cryptocurrency:

Dollars are gradually becoming worthless.

Jeff Sprecher, CEO of NYSE (world’s largest stock exchange):

Cryptocurrency is the first worldwide currency.  

Pessimistic Statements

Other than the positive prospects cryptocurrency has for the future, people are still skeptical about it. A notable expression of pessimism was relayed through the person of Vitalik Buterin, the creator of Ethereum (the world’s second-largest cryptocurrency):

The Blockchain industry is about to hit the ceiling, there is no room for growth.

The Future of Cryptocurrency Looks Bright

Global Usage:

The traditional means of payment, i.e. paper currency, though still largely used by people all over the world, there is a prevalent belief that people will switch over to the cryptocurrency in the future, especially businesses, because with this they can evade middlemen costs from various businesses. This, in turn, will make services cheaper for end users. All these they believe will happen whether people are aware of it or not.

Government Agencies:

In the future, with the availability and security of the blockchain, the government will adopt cryptocurrencies for the management of their states, because, in the future, cryptocurrency will manage the cash flow in the country.

Exchange Trading:

More currencies are emerging and in the future more will still come and their prices will rise. Many would start trading in different cryptocurrencies.

When the prices of other cryptocurrencies like Ripple, Ethereum, Litecoin, and Stellar rise, they will have massive influence in cryptocurrency exchange and crypto world.

Financial Industry / Banking:

Since the cryptocurrency is rapidly growing and making business transactions, banking and other financial industries may experience hindrances in their operations, hence to avoid this, bank will have to accept cryptocurrencies to stay relevant and when this happens, cryptocurrency currency bank accounts will be available and people can open them instead of computer wallets.

Cryptocurrencies would gain wide usage such that debit cards would be made available to facilitate transactions. Generally, this optimistic believe that in the future, cryptocurrency will replace fiat currency and the world evolve to a point of cashless transactions.

What’s Happening Now?

Though many predictions have been made some engendering hope and others while professing the arrival of subsequent doomsday, we have to observe the happening around us with regards to the cryptocurrencies.

Many industries are presently adopting and promoting the usage of cryptocurrencies, some of which are:

• IBM, Barclay, CLS partnered to form ledger connect to launch blockchain apps for usage in banks.
• Iran announced to make crypto mining industry.
• Cyclean, a blockchain company based in Singapore, is launching blockchain-enabled electric vehicles that will mine crypto as people travel.
• New York medical school founded and launched a research center focused on how to apply blockchain in healthcare.
• Kaliningrad, Russia, now offers cryptocurrency as a means of hostel room payment.
• Major Cineplex, a big movie theatre in Thailand, is integrating payment in crypto, to allow customers to pay with cryptocurrencies.

Conclusion

Although pessimists have given their takes, we can see from the predictions and cases that cryptocurrencies definitely have a bright future ahead of it. With the rapid and constant growth of the blockchain industry (the engine of the cryptocurrency), trends suggest that cryptocurrency will be the new money of the future. That future is gradually coming to play as more and more people and businesses are now subscribing to cryptocurrency for their everyday transactions.