Cryptocurrency is nothing but digital cash. This means that you earn online as well as spend online. What fascinates and attracts people is the fact that there is no central bank or government to define the transaction rules and limits in case of cryptocurrency. There are also several other advantages such as no imposition of taxes, easy international transfers and guaranteed security as cryptocurrency works on the “push” mechanism. Recently, the surge in the value of Bitcoin was exemplary. However, the question still remains whether cryptocurrency has a safe journey ahead. Read ahead now to find out the future of cryptocurrencies.
• FedCoin is similar to a Federal Reserve for cryptocurrency. It has a technology, named “blockchain”. This technology is useful in the sense that it maintains a track record of each block that is time-stamped. Thus, it gets difficult for frauds to make any changes or forge any data whatsoever. This is one of the best means to ensure cryptocurrency safety. If, cryptocurrency continues with its outstanding services and keeps giving immense benefits to the clients, then it can replace traditional banks. People are, in such a case, like to keep digital cash and invest in liquid assets through mutual funds, bonds, equity, share market, etc. The banks may be out of the scene.
• Bitcoin may either be a total mess or an absolute booming business. This means that there may be an extreme situation where either of the aforesaid options are possible. In fact, Bitcoin has already face a low in 2018. This implies that it is not steady yet. Here, the Government too has a role to play. Recently, the Central Government of India and the Reserve Bank of India had stated that they will not accept cryptocurrency and Bitcoin wallets. Thus, what ensued was total chaos. Now, if it so happens that a country refuses to accept digital cryptocurrency, then the citizens will have no say in it.
• There is an ongoing war between those who wish to engage with cryptocurrency and those who totally oppose it. Those who are doing well and earning easy in the digital currency sector, seem to have no end of their obsession. On the other hand, top world players such as Facebook, Google and Twitter have blocked cryptocurrency advertisements. In fact, a few leading banks have also banned credit card purchases of cryptocurrency. These is also a state of frensy due to the uncertain future of cryptocurrencies. It is debated that in case the values drop to too low, who are the customers supposed to turn to, as there is no central bank in the cryptocurrency world.
• Competition in future is also uncertain. There have been talks that market leaders like Amazon and Walmart may bring about their own cryptocurrency. This means that there is a possibility of tough competition and only time will tell us who the winner is.
There have been several propositions for the future of cryptocurrencies. Some say it will totally replace cash while some say that it will die a natural death when the fad ends. Let’s see what really happens.