- At this point, cryptocurrency is a form of digital asset based on pure networking that is distributed across several heavy-load computers.
- Presently, crypto has a few advantages as well as disadvantages.
- It has a faster mode of money transfer using decentralized systems while having a chance of eventually appreciating, with the downside being that the price volatility can reflect in the depreciation of value.
Long-Term Thought
In the next 5 years, the world will see plenty of great innovations and technological advancements, which will bring our tech world to another level but also create a lot of chaos. Long-term predictions are very hard to make, but they are a good experiment. Five years is sufficient time for any unexpected and outrageous event to happen.
Crypto Becoming A Unit Of Account
One of the major changes one could see in the field of cryptocurrencies is that Bitcoin may become a unit of account on par with the U.S. dollar or euro.
For many years now, the primary unit of account has been the U.S. dollar, which is also the currency in which most cryptocurrencies are valued, including Bitcoin, Ethereum, etc.
The two primary functions of money, payment and value storage, are being steadily replaced by cryptocurrencies on a daily basis.
Once crypto becomes the leading candidate for the role of a unit of account, there will be a major mental shift that will signify cryptocurrency as victorious.
What Needs To Happen?
For the above statements to become reality, one not only needs advancements in crypto but also some prerequisites to happen, like a sharp drop in the confidence vested in the U.S. dollar as well as the Euro. While this happens, crypto should be able to capitalize on this situation accordingly.
This would just be the start; crypto would need some other scenarios to help as well, like the inflation stage becoming much worse than expected, an economic crisis, or some kind of epidemic breakdown
Geographical Borders
It is not very difficult to imagine a future in which some cryptocurrencies have different values depending on what state or country one belongs to, which is unlike the case right now, where crypto is a global currency without any kind of bias towards any country or region.
Conclusion
There is always a probability of drastic radical change, which might affect the smallest as well as the biggest parameters related to the field of crypto. Some of the most stable coins might witness a fallout, while others are not so famous. The whole process is quite slow, which is not necessarily a negative thing for the field.
Finally, one can never predict the future with 100 percent accuracy, but it should be very safe to say that cryptocurrency will have a huge impact on the economy and will most definitely play a huge role in every country’s economic and financial side.
