The Future of Cryptocurrency: What Will Crypto Investing Look Like in 10 Years?

Future of Crypto Investing
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Is cryptocurrency a bubble or a boon? Some experts have warned that the industry is a bubble that may burst anytime and leave millions of people scrambling to salvage something from the wreckage.

That's the grim version of the future.

The cheery version? Bitcoin and other digital tokens continue to ride a crest of acceptance. Institutional investors swan into the arena like welcome messiahs, pumping even more funds into the system. Popular tokens keep gaining in value. New use cases for crypto are discovered. The bridge between fiat and crypto blurs and everyone starts using crypto to pay for goods and services.

The truth is that nobody really knows the future of crypto in the next 5 years and beyond. That should not stop you from trying to rationally analyse what could happen. This will help you make sound investment decisions.

Is Crypto the Future of Money?

Money is something that is generally accepted as payment for goods and services. Money is verifiable, storable, scarce and acceptable. If crypto is going to replace fiat on a wide scale then it must meet all of these conditions.

Crypto as a Medium of Exchange

For something to be a medium of exchange, it must be capable of being both usable and acceptable as payment. It must encode value which can be transferred from person to person.

When you buy a car for fifteen thousand dollars, the money encodes the value that the car has to you and which the seller believes the car has to you. You and the seller agree that dollar notes are an acceptable way to exchange value. Furthermore, the seller believes they can exchange that money for a similar car or something else of similar value in the future.

Bitcoin and stablecoins are already used as media of exchanges in certain industries. Freelancers across a wide range of specialisations get paid in crypto. You can buy cars, pizza, electronic equipment, air tickets with crypto or bitcoin your way to an expensive vacation. The evidence so far indicates that this trend will continue into the future. More and more sites and physical stores will start accepting crypto.

Crypto as a Unit of Account

A unit of account is a standard with which prices, costs, debts and income can be calculated. It provides a stable framework to measure incomes, gains and losses. It must be divisible, fungible and countable.

You can certainly divide 1 bitcoin into smaller fractions, all of which collectively total 1 bitcoin. If you divide 1 BTC into 4 equal parts, each ¼ BTC is exactly the same in value as any other ¼ BTC. This makes BTC fungible. Finally, BTC is countable because you can subject its units to mathematical operations like addition, division and subtraction.

However, BTC and crypto in general are relatively volatile compared to a strong fiat currency like the US Dollar. This makes crypto less reliable as a unit of account. Whereas you can be sure that 200 dollars next month will be greater than 150 dollars today, barring the collapse of the US economy, you can't say the same for bitcoin. If the price of BTC falls sharply in the interval, 200 BTC then can actually be worth way less than 150 BTC now.

Fortunately, crypto has a solution for this: stablecoins. These are coins pegged to a stable fiat currency like the USD. In ten years, people might just be paying each other in USDT, or a national or regional variant, skipping fiat altogether.

Crypto as a Store of Value

For crypto to function fully as money, it must be usable to maintain and create wealth. So far, BTC and ETH lead the way. The rest of the altcoins are a mixed bag. The occasional bear runs complicate matters as a lot of value is lost when the market is red.

Suffice it to say that, over the long term, Bitcoin and Ethereum have proved to be very strong stores of value. This looks likely to continue far into the future, as long as general interest in crypto doesn't plateau. The recent adoption of BTC as a legal tender in El Salvador is a step in the right direction.

Bitcoin and the Idea that Birthed a Future

Bitcoin future chart

To understand why crypto finance might be the future and what it might look like then, let's take a trip into the past.

Bitcoin was created for two main reasons: anonymity and ease. Traditional payment systems came inbuilt with features that allowed governments to know the parties to a transaction. BTC offered a way to send money without interference.

Cross-border money transfer could be painfully slow. The money had to pass through multiple checks before getting to its target. BTC simplified this. By using the network, people can send and receive money in minutes rather than hours or days.

Privacy and speed have become important keystones of modern trade and interaction. The appeal of crypto is clear. Making payments via the blockchain is faster, easier and cheaper than traditional methods.

Governments know this too. Hence there has been research to create digital versions of national tokens. The US government is researching the creation of a digital dollar. The Nigerian government recently launched eNaira, a virtual version of the local currency.

There's still a red flag in all these. Every central bank digital token created will still be under centralized control. It will provide the ease of crypto without the anonymity.

As a result, conventional cryptocurrencies will maintain their status as efficient payment systems. As adoption increases, so will usage.

Future Cryptocurrency Predictions

 Cryptocurrency Predictions chart

Predicting the future is a game for fools, gamblers, and Nomdtradamus. That hasn't stopped crypto analysts from forecasting what could happen to the industry in a decade and more.

If you're an investor, you might wonder about the potential trajectory of bitcoin and other crypto coins in the next ten years. This is normal. It's probably wise to make sure that you're not putting your investments into something with a short shelf life. You need as much information as you can. This way, you can focus on areas that offer the best prospects for growth and least risk of disappointment.

Here are some common questions about the present of cryptocurrencies and crypto future predictions.

Is Cryptocurrency Really the Future?

A report by Deutsche Bank claims that digital currencies could one day replace traditional cash as the preferred means of payment all over the world. The study hinges the prediction on the growing preference among the general public for anonymity and privacy of financial transactions.

According to the study, the focus will gradually switch from centralized financial institutions to decentralized digital payment platforms that are not beholden to regulators. It projects that over 200 million users could be using digital currencies by 2030.

In other words, the answer to the question: "Is cryptocurrency the future of money?" could be "Yes". But, a lot still needs to fall in place for this to happen.

Right now, complexity of use is a significant barrier. Many people just don't understand crypto jargon and back out at the first sign of a hurdle they meet. Operating wallets and trading on exchanges are a bridge too far for many.

Another issue that needs to be cleared is government regulation. Government won't just give up control over the finance. Whether governments embrace crypto and how they do so will be important in deciding how fast crypto replaces money in the future.

Ultimately, it's user adoption that will decide the gate of crypto as either a substitute for traditional money or its replacement. If most people decide that they prefer to spend and receive crypto, then we will be waving goodbye to paper notes and traditional bank accounts.

Will the Crypto Industry Experience Another Crash?

The crypto market is very volatile. Much more than the stock market. This is something every investor in digital currencies has to deal with.

The "crypto winter" of 2021 wiped away more than half of the entire industry's value. Following this event, many are wondering if something like that will happen again. Currently, the industry is in the middle of another strong run and has a valuation above $2.6 trillion.

Opinions differ but macro trends can provide a clue. BTC currently hovers around $60k a pop. This means it's tripled in value since January. Each significant dip this year crested a higher support and each major pump created a new all time high. On April 13, BTC reached an ATH of $63,375. On October 20, it created another ATH of $66,930.

Clearly, the coin will keep fluctuating as it reacts to market forces and external news. As it rises and dips, rises and dips, analysts expect it to keep creating higher highs and higher lows.

That said, the cryptocurrency has lost 80% of its value 3 different times since it was created. Therefore, you should always expect the unexpected.

Will Cryptocurrency Go Back Up?

If a crash happens, what then? Would that be the end or will crypto go back up?

The short answer is: there are no guarantees. Bitcoin has always bounced back after each crash. Sometimes it took a few days or weeks. Sometimes it took months. But it always happened.

Altcoins are a different breed. Ethereum, by virtue of its eminence in the smart contracts space, now feels too big to be totally sunk by a crash. Other big tokens with an established user base and utility also figure to survive long-term.

Coins with minimal popularity, minimal use case, or both, can disappear completely after a crash. If not that, then their value could crater irrevocably, never to rise again.

Therefore, always keep an eye on the coins you invest in. Establish a preference for tokens with sound economics, durable use cases, wide acceptance and healthy prospects.

What Makes Cryptocurrency Go Up?

Demand and utility. Those are the magic things that, over time, will make the price of a coin trend upwards.

Sometimes, it's kind of a chicken-and-egg situation. Some coins launch with an established use case already set. At other times, increased demand forces the developers (or core community) to find a use for the token so that it can stay popular.

When demand for a coin outstrips supply, the price goes up. The best coins to invest in are those that are assured of being in constant demand. If it also has a max supply and deflationary tokenomics, so much the better.

Which Cryptocurrency Will Survive?

How many currencies are there? Right now, there are over 5000 available cryptocurrencies and new ones emerge every single day. The crypto boom is an unending tap that gushes out new entrants all the time. However, most of them will make little or no impact and eventually fade away.

Of the coins that have gained traction so far, many won't be around in five, ten years. History teaches us that the crypto market moves extremely fast. Any number of things can spell doom for a once-thriving coin.

So, which crypto will survive? Who knows? The only certain thing is that if only one digital token survives the next ten years, it's likely going to be bitcoin.

Why? Because it's bitcoin. It's the first crypto ever created and so has a big first mover advantage. It's also the biggest crypto out there. Bitcoin accounts for more than 40% of the entire crypto market share. That's a big number and the main reason it ain't going anywhere.

BTC is also the entry point to crypto for basically everyone. It is synonymous with cryptocurrency. Nobody can imagine crypto existing without bitcoin. When big capital invests in crypto, it's almost always bitcoin. ETFs and other institutional crypto products feature BTC as the main asset. BTC is also a deflationary token with a max supply. This encourages people to park their money in bitcoin to accrue more value.

Other than bitcoin, some altcoins also look primed to survive in the long haul.

The smart contract space is getting crowded but several coins have distinguished themselves from the pack. They look poised to go from strength to strength far into the future. Ethereum might have already lost the battle of speed but it is poised to win the long-term war. Other platforms like Cardano, Solana (SOL), PolkaDot (DOT), Terra (LUNA), AVAX, LINK, VET, FTM and MATIC have carved out their own niches. They look like sure bankers in the long term.

Of course, with crypto adoption increasing, more user sign-ups and trades will happen on exchanges. Several exchanges have a native token used for settlement, discounts, rewards, staking and other perks. If the exchange manages to stay relevant, so will the token.

Existence, however, doesn't equate profitability. It could be that certain exchange coins like BNB are already at or near their price ceilings. It might be worth taking a punt on the native token of a new crypto exchange platform like Kyrrex. The platform is new and the token is available at low prices. If the stars align, you can ride the coin all the way to the top in the next few years.

Of the payment networks, Bitcoin Cash (BCH) and Litecoin (LTC) might still be around in ten years. Stellar (XLM) looks like upstaging XRP as the best and most reliable platform for institutional crypto-based cross-border settlements. Monero (XMR) and Zcash (ZEC) might keep flying the flag for privacy coins.

Many meme coins have faded away as quickly as they appeared. Two in particular, Dogecoin (DOGE) and its derivative Shiba Inu (SHIB) look like they'll stick around for a long, long time. This is despite neither of them having much in the way of utility. At the moment, both comfortably nestle among the top 20 crypto coins in the world.

In decentralized finance, Uniswap (UNI), PancakeSwap (CAKE) and Raydium (RAY) have become central to liquidity on their respective blockchains. They don't seem to have any challengers that can steal their crown.

Gaming and NFT marketplaces are a developing area worth keeping an eye on. If you're wondering what is the fastest growing cryptocurrency, it might be Axie Infinity (AXS). This token already took the crypto world by storm in 2021. Who knows what it will look like in 5 years? Decentraland (MANA), Alien Worlds (TLM) and Enjin Coin (ENJ) also look interesting.

These coins are some of the best in the crypto market today. They can represent the next currency to invest in. But it doesn't mean they're 100% guaranteed to remain so strong or even exist in ten years time.


How to Research Cryptocurrency

 Research Cryptocurrency

If you want to position yourself to make big bucks in crypto, you need to do some research. You can't just FOMO based on the current top gainers list. This is particularly true if you want to choose coins that will remain worthwhile investments in the future.


To thoroughly research a coin, keep an eye out for these five metrics:

  • Market Cap. The current value of a cryptocurrency can tell you whether there is still room for growth. Coins with bigger market capitalization are generally safer to invest in but may yield less returns.
  • Price. The price can tell you the current market sentiment regarding the coin in question. If the price is rising, it might mean investors are bullish. You can check its historical price to make a more nuanced judgment.
  • Volatility. A coin that swings wildly from one extreme to the other is probably not what you want. Even though crypto is volatile by default, the degree of volatility can help separate good long-term projects from pump-and-dump schemes.
  • Volume. Volume is an indication of a coin's liquidity level. The higher the daily/weekly/monthly volume, the bigger the general level of interest in the coin.
  • Supply. Supply is the total units of the coin in circulation. Always check the max, circulating and total supply before you buy a coin so you don't get hoodwinked by a deceptively low price.

Crypto Investing and the Future

Making sound investments should be the goal when putting money in crypto. When choosing a coin to invest in, what might happen in the next weeks and months is as important as what's happening now. Especially if you want to keep the coin in your portfolio for the long haul.

Some coins have established a niche for themselves, becoming household names. Pay attention to them. Staying power is an important element in crypto. It shows that the project is solid and investors trust it.

You can also turn your attention to the best upcoming coins. The most popular coins right now may not fit your needs. There are lots of new gems out there. In general, those who emerge from the crowd are bringing something new to the crypto table.

Always remember that, new or old, coins generally rise and fall based on the reception to their purported utility. A popular coin right now can disappear if the world moves on from what it does. Another cryptocurrency might even supplant it by offering the same utility with better features.

You can aim for "coin from the future" type investments once in a while. You can reap huge rewards from a new token like KRRX that, when fully deployed, will service a hybrid ecosystem of crypto trading, cross-border payments, and eCommerce.

Challenges to a Crypto Future

Challenges to a Crypto Future

This article makes a happy forecast for crypto in the next ten years. The picture, however, isn't completely rosy. Even as more people join the crypto space, new challenges keep arising.

Some countries have begun to take a tougher stance on mining of crypto and its usage. China, for example, has carried out a complete obliteration of crypto activity in the country. Miners are banned. Citizens are forbidden from using cryptocurrency as a medium of exchange. And the country's banks are barred from servicing the crypto industry in any way.

Many countries that haven't moved against crypto in the same way have started to implement tougher regulation. Some now require crypto platforms to be registered and provide KYC for customers.

Then there's concern about how much energy is being used and wasted by blockchains. This issue is very important in an age where climate change poses grave danger to the planet. Cryptocurrencies like Cardano (ADA) have however emerged as cheaper and cleaner alternatives to energy-inefficient networks like bitcoin.

Conclusion

Though it's already reached trillions in total value, crypto is still in its infancy. Thefastest growing cryptocurrency right now may no longer exist in a decade.

Proponents of crypto hope that it can provide the future for money and also act like an investment asset class. Different digital tokens can serve different roles.

Stablecoins can take over from fiat as the new mainstream medium of exchange. Bitcoin can maintain its dual role as a payment system and speculative asset. Smart contract platforms can keep leading the way in the dapps revolution.

For the investor, bitcoin and the top dozen or so alts will likely continue their prominence. Perhaps there will be one or two big-time casualties. Beyond them, opportunity abounds in projects that can leverage emerging tech or introduce something new.

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