You either love it or hate it. The principle behind Cryptocurrencies is a truly great idea. Everything is going online, so why not payment methods? But like most things that humans come in to contact with, they too have been bastardized to serve illicit means. It is well-known that Cryptocurrencies have made the life of drug traffickers and money launderers much easier. But Cryptos have done more than offer an anonymous currency, they have spawned an entire industry built up around them, with Blockchain products for medical, sporting, property, financial, the list is endless. After the invention of the internet, the Blockchain is arguably the greatest invention of our time. Can the same be said for Cryptocurrencies though? And if so then what does the future look like?
Before we look into our crystal ball, let’s take a minute to understand why cryptos were created in the first place.
The History of Cryptos
The first successful cryptocurrency is Bitcoin and it was created by an autonomous person or group called Satoshi Nakamoto. The purpose of Bitcoin is to provide people with control over their finances by facilitating electronic transactions in a secure and decentralized peer to peer environment.
With that in mind, it’s easy to see the future in which Satoshi Nakamoto envisioned. If Bitcoin or other cryptocurrencies can achieve fast, secure, and cheap transactions without the need for intermediaries, the question becomes- Why wouldn’t cryptocurrency replace the current financial system? However, there are still many hurdles and obstacles to overcome, which makes the future of crypto uncertain.
Scalability, Security and Decentralization
For instance, for Bitcoin or other cryptocurrencies to replace the current financial system, they need to be able to scale and handle thousands, hundreds of thousands or even millions of transactions per second. This is a very difficult task to accomplish while maintaining a high level of security and decentralization. Scalability solutions are being developed for Bitcoin and other cryptocurrencies, but it is uncertain which ones will work and come out on top. It’s only a matter of time until a viable scaling solution or cryptocurrency is found.
Government Regulation of Cryptocurrencies
Another factor influencing the future of cryptocurrency is government regulation. While the majority of cryptos are decentralized, they can still be affected by government regulations which can hinder the development and adoption of cryptocurrencies. However, governments could have put a stop to Bitcoin and cryptocurrencies years ago when they were smaller and unheard of, but they didn’t. Governments continue to let the crypto environment innovate and grow, which is why we believe they will continue to do so.
The Future Looks Bright
All in all, the future of crypto looks bright. The future may be uncertain, but it’s clear that cryptos are not going anywhere. We don’t know whether Bitcoin will come out on top and replace the financial system, or numerous cryptocurrencies and tokens will be used in conjunction with one another. But it is certain that crypto has a significant place in our future, and to see this future through, we need to start using and accepting cryptocurrency.
Today, there is one project that is working diligently towards this future and it has created a way to spend cryptocurrencies in the current financial system we have today. This project is called Digits, and what Digits does is allow people to spend cryptocurrencies by using their personal debit or credit card. Yes, that’s right, Digits turns any debit or credit card into a crypto payments card, allowing crypto payments to be accepted anywhere a debit or credit card is accepted. Digits has the potential to be the most vital step in the right direction towards a future in which cryptocurrencies are accepted everywhere.