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The world of Bitcoin has been on a rollercoaster over the course of the year, with some of the world’s largest companies getting involved. MicroStrategy, Tesla and Square all rocked the Bitcoin world by putting portions of their balance sheets in Bitcoin thanks to its reputation as a store of value of the future.
But, will this trend continue, or is it just a fad to grab some media attention? Research suggests that the trend is here to stay, bolstered by a few other exciting crypto trends.
Let’s take a look at some innovations and cryptocurrency trends from the crypto industry in 2021 and see how they integrate with the world of startups!
Improved Risk Assessment
Bitcoin has always been unpredictable, which is arguably one of its biggest perks as an investment. In just a few short hours Bitcoin has the power to rise or fall by thousands of dollars. But, as time goes on, risk assessment models will get better and more accurate. This will allow traders and investors to time the market more effectively, preventing companies and individuals from suffering large losses. This is one of the cryptocurrency market trends that offers unmatched opportunities for startups looking to become part of it.
DeFi Will Become the Norm
At the moment, decentralized finance (DeFi) is still pretty new and yet, the market expands at roughly $40bn a year. But, as time goes on we’re going to see decentralized finance become more stable and more widely accepted. It’s already progressing down the right path, and if we give it time, soon everyone will be borrowing and lending via DeFi, to finance the purchase of their next house, car, vacation or large purchase.
The Rise of Crypto Advertising
Display advertising has primarily been done with Google and Facebook, but as these two media giants continue to show their shady practices and misuse of personal data, more and more people leave these platforms. As a result, we’re seen a huge boom in crypto advertising networks and their success is still growing.
By taking advantage of powerful and advanced tools, PPC advertisers can harness crypto advertising platforms to supercharge their marketing campaigns, seeing more success than ever before.
In conversation with Matvey Dyadkov, CEO at Bitmedia, he outlined: “Blockchain has had an imperative effect on the marketing industry. Not only did it open up a new audience medium for advertisers, but also helped us to reimagine how we monitor marketing effectiveness. This space carries incremental benefits to the off-blockchain world and remains to be the go-to place for crypto projects looking for traction”.
Transaction Costs Will Change
Transaction fees are the talk of the town in the crypto world, with some blockchains costing a small fortune to use. To send an NFT on the Ethereum network, it can cost upwards of $60 during peak times, which is less than ideal.
There’s a trend emerging where blockchains are all working on ways to reduce the cost of transactions. As 2021 rolls on and we move into 2022, we’ll see transaction fees drop drastically, giving blockchain a fighting chance at going mainstream.
Central Banks Will Launch Their Own Digital Currencies
Digital currencies have a myriad of perks over the current system, and as a result, we will see central banks introduce their own digital currencies. These Central Bank Digital Currencies (CBDCs) will run on private ledgers controlled by the banks, much like we see with Ripple and XRP.
Once this takes place, we’ll see banks turn into DeFi like entities, offering varying interest rates that anyone under the jurisdiction of a particular central bank can use. This will likely have the most impact in Europe, opening up incredible opportunities.
More People Will Get into Crypto
Cryptocurrency has the power to reshape our lives, and as time goes on, more people will get into crypto. Within the next 5 years, we’ll definitely see crypto accepted at virtually every store and business in the pro-crypto countries. There are so many advantages, and with inflation rising all around the West, crypto looks like the safest bet for the future.
Speaking on the future of blockchain and crypto, Tanya Petrusenko, Head of Business Development at Bitmedia, said: ”The crypto world is fast evolving, and as the top crypto ad network, we’re watching it unfold before our eyes. The types of products and services being advertised on our platform are developing at an incredible pace and each of them is set to change our lives for the better!”
Everyone Will Have NFTs
Did you ever collect trading cards, stamps, coins or teddy bears? Well, eventually there will be a non-fungible token (NFT) for all those things. As the digital age enters full swing, everything will be stored on the blockchain. Pictures, music, videos, creative digital avatars and even 3D models will do. Also, when creating a token, you can add blocked content that only its owner can see. You’ll collect your trading cards as NFTs and battle with them in blockchain based games. Other collectibles will be paired with NFTs, verifying your ownership and the legitimacy of the item indefinitely.
Crypto Tax is Inevitable
For the most part, crypto tax is still rather confusing, but that’s just because it’s so new. As more governments look to control the crypto world, we’ll see sweeping tax regulations put in place. This is great for crypto as finally coins and tokens will have defined classifications and tax rates. It will also likely lead to many paying less tax on their crypto investments than they currently do.
5G Will Make Crypto Mining Exciting
As it stands, to mine crypto you need 2 things – power and the internet. As 5G goes mainstream and makes the world even more connected, crypto miners will be able to set up shop anywhere they can get power. They can then hook up their farms to the 5G network and utilize its ultra-low latency to join the mining network.
It will also allow crypto traders to trade on the go. Wherever you are in the world, you’ll be connected to the web via 5G. This gives you, as a trader, instant and low latency access to exchanges, meaning that trades settle instantly, and you won’t miss your price.
Millennials Will Get More into Crypto
Millennials are now coming of age where they’re getting jobs and can afford to get into cryptocurrency. They’re also the ones that are moving into the industry for work, bringing ideologies and new theories with them. This will supercharge the industry, taking crypto and blockchain to the next level, beyond our wildest imaginations.
A Crypto Crisis is Coming
Crypto is fantastic, and the blockchain technology that powers it is evolving at a crazy rate. As this technology becomes more powerful, we’ll likely see a crisis whereby the current norms rebel against crypto and blockchain. It won’t be pretty and only a handful of old-world tech companies will survive the jump, but it’s a crisis that is coming and needs to happen if we’re going to evolve technologically as a race.
The Future is So Exciting!
The future holds so much for us, and blockchain unlocks even more potential. The ride might be bumpy, and we could see a lot of things change, it will all be for the betterment of humanity and our technology.
