In such a volatile market, is it wise to start making cryptocurrency predictions? With daily changes occurring in the digital space, is there a point to making long-term forecasting? In the traditional investing space of stocks and bonds, predictions and “futurecasts” are made all the time. Why should it be any different in the digital currency arena?
Predicting the Future of the Cryptocurrency Market
It would be an understatement to say that digital currency and assets have had an effect on the financial sector. Existing for less than 10 years, the cryptocurrency market has spread or attempted to spread to countries around the globe. From nothing to an overall market value in the hundreds of billions and then dropping down to tens of billions. Volatility and speculation have practically become synonyms for cryptocurrencies.
The technology underlying crypto is attractive to many industries. Blockchain tech either has been adopted or attempts have been made to adapt this data tech to travel, real estate, traditional banking, and other industries.
The results have varied.
Stripe, a technology infrastructure, was unsuccessful in their attempt. All they wanted to do was incorporate a Bitcoin payment option. Too many problems to overcome.
FedEx and UPS are testing and incorporating blockchain technology in their businesses. They are establishing use standards. Customer issues are beginning to be solved thanks to blockchains. These and other companies are discovering best uses for this tech in their businesses.
There is an overarching belief that cryptocurrencies continuing to develop. That the technology will continue to improve. That innovation will fuel more and more successful uses of crypto and blockchains.
Is Enough Known to Make Predictions?
Despite the extreme ups and downs of the crypto space, trends have emerged. These trends aid in predicting the digital space future.
Here’s a look at a few cryptocurrency predictions being made:
Institutional Investors Will Increase Their Cryptocurrency Involvement
Government regulation of the cryptocurrency market has been increasing. More regulation is viewed as a stabilizing effect on the market. Stability equals a higher comfort level for high dollar institutional investors. As comfort increases, so does investment.
Global Regulation is On The Horizon
For many, lack of regulation means a lack of security. The SEC claims that cryptocurrency exchanges are operating without any worthwhile amount of regulation. Contrast that with the high level of governmental and banking regulation of traditional money.
Movement is happening. International regulation of cryptocurrencies is progressing. At the recent G20 summit, “directives were made for global regulation”. The overriding opinion is that this is new so trust must be won. Using regulations to increase security is seen as the foundation of long-term blockchain success.
Volatility Will Remain
There’s just too much going on with crypto. This prevents the death of volatility. More regulation of the coins and of the markets will mitigate some volatility, but it will not wipe it out. Anyone putting money into this space should take that to heart.
Along with the speculative nature of cryptocurrency, the predictions made in this article are speculative too. Only time will tell if they come anywhere close to being accurate.