Since 2013, the number of digital currencies has increased. Since blockchains are generally open source and cryptocurrencies are unregulated, anyone can easily generate a coin from start. Because it is simple to create a coin, the market is currently overrun with 15,000 different cryptocurrencies.
Since 2013, approximately 775 digital coins have been produced annually, according to data. In light of this, analysts believe that the number of cryptocurrencies may increase in the future, most of which will be worthless.
Meme currencies have already been dominant in 2021 as a result of the achievement of well-liked options like Dogecoin and Shiba Inu inspiring a large number of imitation altcoins to emerge.
Of course, the inverse is also possible—there can be a significant consolidation in which only a few coins survive.
Bitcoin may become the world’s reserve currency.
Another audacious forecast about the future of cryptocurrencies is that by 2030, Bitcoin would overtake the dollar as the world economy’s reserve currency. Despite its volatility, Bitcoin has experienced a positive run in 2021, with its price reaching new all-time highs.
The Human Rights Foundation’s chief strategist and Bitcoin specialist Alex Gladstein claims that “Bitcoin is a technology whose mission is to replace the dollar as the world’s reserve currency.”
Gladstein contends that Bitcoin has an edge over fiat currencies like the dollar, which have undergone a wave of Federal Reserve money printing, due to its fixed supply.
Gladstein continued, “Looking at the balance sheets of the Fed or the European Central Bank, it is astounding and historic how much new money is being created.”
Due to its decentralized nature and lack of centralized control, bitcoin offers an alternative to currencies issued by central banks. According to Gladstein, it may take decades before Bitcoin overtakes the dollar as the world’s reserve currency, but the transition is unavoidable.
Gladstein thinks that because Bitcoin is the most challenging form of money and a superior store of value, governments will be compelled by self-interest to adopt it.
The regulation of cryptocurrency will increase
Cryptocurrency is still mostly unregulated, however, efforts are being made to make it a secure investment for all parties.
The bitcoin industry will become less appealing to cybercriminals with clear and progressive laws, and fans, developers, and investors will be better protected. Experts expect greater regulatory attention on the cryptocurrency industry in the future.
American regulators have already released a statement outlining a strategy to enhance the supervision of banks involved with cryptocurrencies.
As cryptocurrencies become more widely used, regulators are starting to focus on the sector to stop money laundering and other financial transactions.
Additionally, the Financial Action Task Force (FATF) recently unveiled a series of guidelines intended to assist governments around the globe in defining and establishing legal frameworks for cryptocurrencies and businesses that provide services connected to cryptocurrencies.
All of this points to a time when cryptocurrencies will spread widely under complete regulatory control.
Conclusion
Although the popularity of cryptocurrencies is growing, Bitcoin has only been around for a little over ten years. Even while it is challenging to anticipate with precision what the industry perspective will look like in 10 years, present events provide important hints about what lies ahead.
Regulators are currently paying greater attention to the sector, new cryptocurrency-based ventures are constantly being launched, and Bitcoin is more prepared than ever to supplant the dollar.
