Since Bitcoin was created in 2009, the cryptocurrency market has been very volatile. While there are still many legal or technological obstacles, cryptocurrency still has the potential to revolutionize various industries.
Here are 4 crypto trends that are likely to occur over the next 5 years.
1. The regulatory issues will be solved
Cryptocurrencies are designed to eliminate the control of governments and institutions, which means its goal is to achieve freedom and decentralization in the field of finance and information.
However, speculation and price manipulation coupled with the increasing number of money laundering crimes have made governments increasingly tighten regulations.
While this may seem to contradict the original idea that Satoshi Nakamoto thought of when creating the first decentralized cryptocurrency, we have to admit that the cryptocurrency sector can only exist when It involves the partial organization.
Many countries have begun to have laws regulating this area, and it has made traders believe that cryptocurrencies are safe assets to invest.
For example, organizations in the United States, the Middle East, Asia, and the Pacific have issued guidance on ICO services and investing in cryptocurrencies, while several other governments have begun to support blockchain projects.
Therefore, we can expect the official laws in the cryptocurrency market, which will contribute to its stable growth.
2. There is increasing interest in cryptocurrencies
Facebook announced Libra in June 2019, allowing you to send money to others and make purchases at almost no charge.
Social media hopes to create a developed and advanced cryptocurrency version of PayPal and make a breakthrough in the financial industry by introducing a simpler, more efficient, and affordable payment method. Considering the average fee of sending money abroad is 7% of the deposit amount, we can see how this new system will benefit users.
The case of Bitcoin, even though it is more aware than any other coin, is never considered something that people can use every day until Shopify announces integration. This move paved the way for Bitcoin to be accepted in the e-commerce industry.
Fidelity, a U.S.-based asset manager, has started offering its institutional clients the opportunity to invest in Bitcoin. At the same time, JP Morgan announced that they would launch their own cryptocurrency.
While the increased interest in cryptocurrency investment is due to the saturation of traditional investment as well as low returns on stocks or gold, it's undeniable that investors are seeing great opportunities in the cryptocurrency market.
3. Chatbots will revolutionize cryptocurrencies
The synergy of these two new technologies will help users gain more access.
Cryptocurrencies operate on the cloud, which in fact will allow automated systems to operate. Combined with machine learning and artificial intelligence, these automated systems can be used for financial management as well as predicting and handling trading risks.
AI-powered chatbots can play different roles in the cryptocurrency industry and maybe it will act as advisors. Chatbot has a great advantage in analyzing huge amounts of data.
And the great thing here is that you can give your trading chatbot all the relevant information like current prices and transactions, then they will be analyzed with the help of algorithms. Big data, so the best decisions will be made without your intervention.
Chatbots can also be your personal financial advisor.
Many people cannot manage their property properly. By leveraging an intelligent chatbot, you can create budgets and plan spending wisely. And there have been many applications that can help you with this problem.
We believe that something similar will appear in the cryptocurrency market. It acts as a major crypto financial advisor, who informs you of potential risks. Moreover, if authorized in advance, it will even likely prevent you from making bad financial decisions.
4. Blockchain will be used in IoT (Internet of Things)
Blockchain is a technology that supports cryptocurrencies. For now, it's still one of the most popular technologies today, and giants like IBM and Walmart don't want to give up on blockchain because they believe it will show real value in terms of record-keeping and delivery.
One area where the use of blockchain technology has doubled in 2018 is the Internet of Things. Superior encryption is used to secure digital ledgers, helping prevent cybercriminals from gaining access to computer networks. The decentralized nature of blockchain poses another obstacle for hackers because it doesn't allow them to circumvent security just by disabling a single point of failure.
And that's exactly what makes blockchain perfectly suited to IoT. We are talking about a network of devices that are connected and controlled remotely via applications, which is obviously very detrimental to hackers. Many IoT devices are suffering from security issues that can be overcome with the help of blockchain technology. Most hackers will not be able to hijack IoT devices and control them using DDoS attacks.
The cryptocurrency industry is still in its infancy, though there are some uncertainties along the way. The new trends mentioned above will help the industry strengthen its position and become more popular than it is now.
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➤Learn more: What is Bitcoin? Everything you must know - Should you invest in BTC?