Many people have already started using cryptocurrencies in their daily lives. By 2030, Deutsche Bank expects there will be 200 million bitcoin users in the public sector. The mass adoption scenario for crypto enthusiasts is now closer to reality than ever before. Even during the Covid-19 outbreak, many cryptocurrencies like Bitcoin have performed quite well compared to financial markets.
The Rise of Blockchain Technology
The use of blockchain technology is growing exponentially. Although DLT technology originated in the cryptocurrency world, it has found application in a wide range of other industries including medicine, finance, and education.
It all boils down to trust and the immutability of linked data. Spend less money because there is no middleman. But can these characteristics prolong the industry’s growth?
Looking at the progress of cryptocurrencies today, we make five predictions for the future development of the technology and its prospects in 2030.
The Global Cryptocurrency Market Will More Than Triple by 2030
The term “cryptocurrency”, which was only understood by a small group of people before, is now a household word. We predict that the value of cryptocurrencies will rise to $7 billion by 2030, more than triple the current market cap of $2 billion. It would be foolish for investors, businesses and brands alike to ignore the growing crypto wave for too long.
These details are critical to understanding general consumer attitudes and predicting consumer behavior regarding cryptocurrencies in a highly uncertain future.
More Governments Accept Virtual Currencies
Governments can use virtual currencies with the help of blockchain. Governments will have to find a way to integrate some virtual currencies to keep up with current trends and participate in the economic growth that comes with them.
We already have examples, such as digital currencies in countries and Petromoneda, backed by oil and mineral resources in Venezuela, which have developed their own digital currencies.
Over time, the use of price-stable tokens regulated by monetary rules and backed by collateral will begin to gain momentum. Governments that have had less luck with cryptocurrency creation may turn to stablecoins.
The Impact of Cryptocurrencies on the Global Economy
Global supply chains can greatly benefit from the use of blockchain technology. Current global trade is characterized by disjointed and unreliable corporate relationships.
Grey markets such as medical equipment, medicines, clothing, auto parts and food supplies can be a source of life-threatening counterfeit products, as many people die each year as a result.
Therefore, it is expected that the majority of global trade will be conducted using blockchain technology. Before this can happen, blockchain technology needs to do several things.
This will allow cryptocurrencies to grow in the ecosystem, thereby promoting economic growth and improving conditions and standards based on trust, immutability and transparency.
Obtain Value-creating Assets on the Basis of Decentralization
Thanks to the widespread tokenization that can be done through the use of blockchain technology, previously only those with substantial financial resources can now make it available to the public. A luxury hotel is an example of an asset that requires significant capital and upfront risk to acquire.
When huge amounts of assets are tokenized, everyone can now own a portion of income-generating assets. Tokenization is becoming a reality at every level, as evidenced by NBA players converting their contracts into digital tokens.
Potential Cryptocurrency Alternatives
With the rapid development of blockchain technology, there may be some exciting new things in ten years. However, in the long run, it is feasible that the blockchain will grow significantly thanks to the work of various developer groups.
A true immutable ID system that claims to root out identity theft, and even blockchain voting that prevents voter fraud are two of the more interesting blockchain applications. From this vantage point, 2030 looks exciting.
