The concept of the blockchain was created to solve the problem of digital trust. Many in the cryptocurrency space feel that this technology will allow our world to operate entirely online. They believe this because blockchain technology provides the ability to record information in an area that can’t be removed and allows everyone to see changes that do occur. This makes the problem of deception and tampering more difficult. This is the one reason why many economic experts are beginning to speculate that world governments and big financial institutions will eventually create their own cryptocurrency or at least, incorporate aspects of the technology into fiat currencies.
While Bitcoin and the second closest rival Ethereum (which is the platform Ether is used on) have proven they have staying power, the market and technology are continuously experiencing innovation. Expect to see potentially unknown coins become stronger as there is room for more competition even with the hundreds of cryptocurrencies already on the market.
ICOs Will Change How Companies Raise Capital
An ICO (Initial Coin Offering) is an unregulated means of crowd funding. ICOs are becoming an attractive option of raising capital for startups, or even for more established companies. For
example, there wouldn’t be a need to personally find, meet and convince individual investors to invest in your business as anyone can participate as an ICO investor online. Check this out Cryptocurrency :The New Normal
Regulations Will Be Created
Right now, the cryptocurrency market is in an awkward growth stage and governments, banks and other officials are still trying to figure out how to handle this technology. Elena Kvochko, Chief Information Officer of the Security Division at Barclays, said that her
bank had talks with regulators about Bitcoin, blockchains, and their ilk. The officials appear to be open to the idea as long as “know your customer” laws are obeyed, and countries are already coming with ways of accommodating the new technology.
The Market Will Become More Stable
Cryptocurrency prices can and do fluctuate, sometimes drastically. Bitcoin, the oldest of all the coins, has gradually become more stable over the years and so there is a reason to believe the rest of the market will as well. The case for this depends on whether a strong argument can be made that beats using traditional money. The hope is that as more and more of the world begins to interact with each other online, cryptocurrencies will be more of an attractive option because of their many benefits.
Cryptocurrencies Will Force Payment Processors to Improve
Payment processors such as Visa or MasterCard charge fees whenever you use your cards. It has been pointed out by Nicko van Someren, Chief Technology Officer of the Linux Foundation, that the charge exceeds the cost to clear or settle transactions. Should the world increase its adoption of cryptocurrencies, this could force these payment processors to become more competitive. These companies, as well as banks, would need to adjust their pricing closer to the real cost of handling transactions. See The future Of Cryptocurrency And The Nigerian Economy.