Before you read my cryptocurrency prediction lets, look how cryptos have progressed and regressed so far. The future is often a reflection of the past in many respects, and the past may be a good indicator for cryptocurrencies.
So far in 2018 cryptocurrency has not captured the imagination of people like it did last December. Many people saw the staggering rise of Bitcoin last year and had dreams of instant wealth. But alas reality set in as a price correction phase started in January. Sadly, the dreamers had to go back to being doers with their jobs and careers.
Many cryptocurrency enthusiasts fantasize about the day of worldwide mass adoption of cryptos. As the mass adoption of cryptocurrency globally expands, the value of cryptocurrency would grow exponentially. Wouldn’t it be wonderful if you had a unique type of cryptocurrency and the whole world wanted it? For people who are just beginning to look at cryptocurrency, let’s look at it from a non-crypto perspective.
Imagine that you built a new widget (cryptocurrency). Imagine your new widget worked so well that everyone you talked to about your widget wanted to buy it. The people that used your widget told their friends and families about this wonderful widget they purchased, and now all those people wanted your widget as well. Pretty soon news about your widget went viral, and there was a massive demand for your widget across the world.
One of the things that people liked about your widget is that it contained a formula which said how many widgets would ever exist. The formula made your widget more valuable because everyone would always know the limited supply. Eventually, your widget became so valuable that most people couldn’t afford to buy a whole widget. To solve that problem you broke each widget into tiny pieces so everyone could afford a piece of a widget.
As the demand for your widget continued to grow, the price of your widget continued to increase. People who bought your widget early now had a valuable asset which could be traded or held for investment
Other people, seeing how successful your widget had become, begin to build their own widgets. One competitor made a widget (cryptocurrency #2) that worked a little faster than yours but didn’t have as many bells and whistles. Another competitor built a widget (cryptocurrency #3) that solved a new problem. Now there were three widgets that all worked well and were in demand by people all over the world. Soon widget makers popped up all over the globe, each trying to make a better, faster, more useful widget for people to buy.
To stay competitive, you needed to keep improving your widget. So you put together a top-notch team to innovate and implement new ways to keep your widget on the cutting edge.
Over time the widgets that solve the most critical problems with the greatest speed and for the lowest cost get used the most. Other widgets that aren’t as useful fall by the wayside.
The widgets that remain have a stable value as people buy, sell, and trade them. These widgets are so valued and trusted they now are used like regular money all over the world. These widgets have achieved mass adoption and are used as global digital currencies.
Cryptocurrency is nowhere near the point of mass adoption or being a worldwide payment system. It’s clear that cryptocurrency is still in its infancy with only small-scale commercial approval. The process of buying and selling cryptocurrency is too complicated for most users. The storage of cryptos, in digital wallets, is also not people friendly and is open to hackers in some ways. People demand ease of use and security of their funds. These two issues must be solved before widespread use will occur.
For cryptocurrency to become a reality in everyday use, it must continue to progress. History shows that great inventions often took strange paths. Cryptocurrency may be another example of change over time. Look at the following example of change over time with automobiles.
In 1768 Nicolas-Joseph Cugnot invented the first steam-powered vehicle. In 1832, 64 years later, Robert Anderson built the first electric car. And in 1885 Karl Friedrich Benz made the first gasoline-powered automobile. From the first reported designs and models for transport vehicles, of Leonardo da Vinci in the 15th century, we have seen millions of cars. The progression of automobiles took centuries and experienced many changes.
Then and Now
The World Wide Web went public in 1991, and less than 1% of the public used it. Today, its estimated over 60% of the world’s population is connected and using it.
Modern-day credit cards were created back in 1959 by American Express. However, they didn’t gain popularity until the 1980s. Today, estimations place credit card purchases at 60% to 80% of all retail purchases.
The smartphone was released in 1991 by IBM. By the year 2000, we saw the Blackberry, iPhone and the LG Panda buy yet only 3% of the public used them. In 2017, 78% of the U.S. population used a smartphone.
According to a Bitcoin.com survey, only 8% of Americans currently own a cryptocurrency. The trend for all these inventions appears to be rather obvious.
It Is Happening
Cryptocurrency is on the same path as many other historical inventions and concepts. Cryptocurrency makes the transfer of money faster, cheaper, and more secure than traditional methods for vendors. Using cryptos to transfer money is currently happening on a significant scale and growing daily. Bitcoin and Ethereum are presently reaching over $8 Billion in transactions a day.
The technology behind cryptocurrency is known as the BLOCKCHAIN. The blockchain is transforming the way we use the internet and many business functions. Furthermore, the way data is stored and transmitted has been changed by the blockchain technology. The blockchain has arrived and is influencing our world every day.
Here Comes The Big Money
Many people are waiting to see what happens in the cryptocurrency market. All eyes were on last December’s Bitcoin price when it was $10,000. As the value of Bitcoin went down so did active interest. What many don’t remember or understand is last year at this time Bitcoin was just over $4,100 and today its trading at $6,436, a whopping $2,000 increase.
Most cryptocurrency enthusiasts agree that times are about to change with cryptocurrency. Anticipation is high that very soon institutional investors will enter the crypto market. With institutional investors come massive amounts of money and new high values on cryptos. The anticipation is also high that sometime soon the SEC will start approving cryptocurrency ETF’s. ETF’s are Exchange-Traded Funds, which is a basket of securities you buy or sell through a brokerage firm on a stock exchange.
Most investors believe that when the SEC begins approving cryptos as ETF’s we will see quick acceptance of cryptocurrency. ETF’s will bring big money into the cryptocurrency investing and can be an excellent vehicle to achieve an investor’s investment goals.
My Cryptocurrency Prediction
As we look at the past, present with anticipation of the future, it appears cryptocurrency is here to stay. Growth maybe unstoppable as crypto wallets get more secure, and governments regulate crypto exchanges for security. As the big markets from ETF’s are organized and institutional money lunges in, values will grow proportionally. Institutional trading should build consumer confidence and commercial acceptance of crypto coins. Just like the links of a chain, so are the links to cryptocurrency mass adoption. Similiar to automobile inventions each step of progress takes time. Unlike a hundred years ago with automobiles, today advancements can move by leaps and bounds in a short time frame. How fast or how far-reaching cryptos will be only time will tell.
Buying and selling cryptocurrency is a game of speculation and should be done with caution. Cryptocurrency price fluctuations are constant, and investors should always investigate any investment option. Due diligence is a must when investing, always double check your information and spend wisely.
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