Cryptocurrency may have started with Bitcoin, but it is far from being limited to one coin. There are thousands of different types of cryptocurrencies, also known as altcoins. While some are worth only fractions of a penny, others are worth much more.
Many people speculate on which coins will become successful in the future. However, nobody knows for sure. Furthermore, it is hard to say which altcoin will stay afloat after the next major cryptocurrency crash. This crash is due to come at some point; even Bitcoin has had major corrections.
For now, cryptocurrency remains an exciting and profitable market for investors.
1. More Crypto-Focused Exchanges
The heavy hitters in the cryptocurrency market are the familiar names, such as Coinbase and Binance. However, there is a race to build out crypto exchanges for altcoins that every company has its platform.
These smaller exchanges offer convenience in that you can buy, sell, and trade different types of cryptocurrencies on one platform. However, they also offer a lot of instability. If a single platform has half of the market share for an altcoin, it is hard to say what will happen when that platform crashes.
2. Blockchain’s Adoption for Non-Crypto Purposes
While most people think of blockchain as a way to invest in cryptocurrency, it is useful for much more than that.
The blockchain revolution is forcing the creation of new technology to store data on decentralized platforms. This is an attractive idea for some people because it gives them back power over how their information is stored.
We will see more and more of this technology moving into different industries.
3. More Regulations of Crypto
The lack of regulations on cryptocurrency has caused a lot of people to be wary. If cryptocurrency is not regulated, then how can people trust it?
Governments are establishing federal guidelines on cryptocurrency. The purpose of these guidelines is to help prevent fraud and money laundering while also ensuring innovation in the industry continues to grow.
4. New Taxes on Crypto
Cryptocurrencies are still anonymous in some cases. While blockchain does publicize wallet addresses, it is possible to keep them unlinked to names and identities with some work.
Because of this anonymity, many governments worry about crypto’s potential use for criminal activity, such as money laundering or tax evasion. They want to be able to collect taxes on these transactions.
As a result, there are increasing calls for the United States to create new laws about cryptocurrency. Many people are calling for increased security measures on crypto transactions so that it will be easier for governments to track them.
5. Cryptocurrency Will Have Less Influence Over ICOs
Initial Coin Offerings (ICOs) allow companies to sell tokens that represent shares of their company. ICOs are like IPOs, except the investor receives a token rather than stock.
More and more companies are turning to cryptocurrency as an alternative means of raising money for their projects without going through traditional IPO channels. This is especially true for blockchain or crypto-related companies. However, cryptocurrency is not always an ideal means of raising funds.
Cryptocurrency as a whole is gaining momentum as it develops. Even as the crypto market continues to crash, people are realizing the usefulness of blockchain technology and cryptocurrencies for everyday transactions.
Zara Raza is the Marketing Lead at Sunvera Software. Sunvera is a local software development firm based in Irvine, CA, providing intelligent software solutions for small and mid-sized businesses as well as entrepreneurs and startups.