Cryptocurrency Predictions: Long-Term Expert Predictions
It might be the most fun part of being in the crypto space – making bold predictions and comparing notes with experts across the industry.
Crypto has had a huge influx of new names and faces over the past couple of years, so there are plenty of predictions floating around. You don’t need to look far to find one, just hop on social media to be overloaded by hot takes and wild opinions.
Today we’re making some long-term predictions while keeping things grounded in reality – no hype or unfounded claims here. We’ll draw on some of the trends we’ve observed in the past few years and explain what we think will happen in the crypto space down the road, offering some facts, figures, and general ideas about where things are headed.
Whether you’re a longtime crypto enthusiast or you’re only just getting into the space, there’s bound to be something that catches your eye in this article, so let’s get right to it.
Overall Market Growth
At the time of this article’s publishing, the global cryptocurrency market stands at around $1.6 billion, bolstered by a significant bull run in the wake of the Covid-19 pandemic of 2020.
According to ReportLinker, the market is expected to grow at a compound annual growth rate of 7.1% over the next five years, bringing the total over the $2 billion benchmark sooner than anyone expected.
The explanation for the current crypto boom has been attributed to many causes, including aggressive monetary stimulus (printing and borrowing), plus the fears of inflation and meltdown that follow.
Just as precious metals have long been used to protect wealth in times of economic uncertainty, assets like Bitcoin (BTC) are now viewed as a viable alternative store of value, explaining why it has earned its name “digital gold.”
Besides, there have been plenty of celebrity endorsements in the crypto space recently, bringing more attention to the technology and inspiring many first-time investors to dip their toes – athletes, entrepreneurs, and even popular rappers and musicians are all getting in on the game.
As crypto becomes even more accessible and accepted for everyday use, these impressive growth rates will likely only continue on the upward trend, even despite short-term dips and corrections.
ETFs, Institutions, and Widespread Adoption
Perhaps the most interesting response to the recent crypto craze has been mainstream adoption from financial institutions, governments, and big banks.
Visa, for example, broke the silence with a collaboration with trading platform Crypto.com, toppling the first domino and pressuring competitors to step up with comparable products and offerings.
The initial entry into crypto has been somewhat tedious for legacy finance, which finds itself at odds with some of the fundamental stated goals of the crypto project in general.
Still, more leaders in the space are arriving at one common conclusion: If you can’t beat ‘em, join ‘em. This is a prevailing sentiment in the crypto world, and we see the same story play itself out over and over again, despite environmental concerns.
Now, crypto ETFs are tracking assets like Bitcoin Cash and other technologies related to blockchain projects. The accessibility of these institutional investment products has opened the floodgates further for the crypto space at large, and this trend will likely continue its momentum.
Just by the simple fact that purchasing and storing cryptocurrency is becoming easier by the day – this should be a sure sign that the industry is only just ramping up for a massive influx of interest from retail investors and institutional forces alike.
Altcoin Excitement on the Rise
For years, cryptocurrency was viewed as interchangeable with Bitcoin, the primary digital asset in the space. Bitcoin is still the most talked-about coin with the highest market capitalization by far, but we’re watching altcoins -- such as Dogecoin and others based on internet memes -- step up in a big way right now, with plenty more runway to accelerate and take off in the future. There's no doubt that some altcoins will see an exponentially higher market cap within the next few years.
Just look at the gains of coins like Ethereum, Litecoin, Cardano, and Ripple in just the past 12 months. These communities are finally getting the attention they deserve, and some of those gains are just too tempting for smart investors to ignore, especially those fascinated with decentralized finance (DeFi). The ability to purchase crypto-assets outside of Bitcoin has completely changed who has a say in what.
This isn’t to say that the legitimacy or staying power of Bitcoin is diminished by any means. It will be here for the long run.
However, healthy altcoin markets show that cryptocurrency goes far beyond Bitcoin price and has stronger foundations than many predicted. That isn't to say that altcoins don't face the same type of market volatility, if not worse.
Prices – What the Pros are Saying
We’re not in the business of making price predictions, nor do we think it’s a very helpful way to discuss cryptocurrency.
A far more productive pursuit is to gauge the public opinion of Bitcoin, altcoins, and other types of blockchain technology to get an idea of how people feel about the subjects and how that sentiment will show itself in the markets over time.
With that said, we do believe that cryptocurrencies of all kinds have plenty more room to grow, although with things stabilizing across the industry, quick and massive gains may not be so commonplace in the new crypto paradigm.
Stay tuned to long-term price predictions from across the web, do your own research, and if you genuinely believe in a coin or project, take the risk you see fit.
Blockchain Applications Expand
Crypto is built on the concept of building and securing a blockchain ledger that verifies transactions in a decentralized manner. Still, financial applications are just the tip of the iceberg for this technology.
Watch closely as developers and innovators leverage blockchain technology for a wide range of practical yet exciting uses in the future, ranging from security and logistics to legal and government applications.
These industries are in need of accuracy and innovation, but there are other ways that blockchain can be used for non-business activities like art, gaming, and everyday communication.
Just look at how content creators earn cryptocurrency by producing videos, games, music, and digital pieces such as NFTs and digital tokens. The future is very bright for blockchain and all of its forms, so think beyond coins and broaden your idea of what’s possible in years to come.
Energy Remains a Hot-Button Issue
There is one problem facing the cryptocurrency community that doesn’t seem to have a clear solution: energy usage for mining and transactions.
With issues like climate change and carbon output at the top of the docket for many western nations and non-government organizations, energy seems to be the weak link in the otherwise strong argument backing crypto at the moment. Tesla co-founder Elon Musk recently reversed his company's stance on accepting Bitcoin payments to take a stance on energy consumption in the crypto industry.
As it becomes more competitive and difficult to mine for assets like Bitcoin, the profitability of these operations is in jeopardy, even if the value of the coins rises according to predictions.
With that said, crypto mining innovators seek ways to harness the power of nature for clean, renewable energy, introduce a new chapter for the mining industry, and overcome one of the main issues faced by the crypto space in general.
The transition will not happen overnight, nor will it be a complete fix for the energy problems facing other coins like Ethereum, but it is certainly a step in the right direction and a good precedent to set for the industry as it grows and evolves in years to come.
Conclusion
Time will tell what becomes of crypto, blockchain, and renewable energy mining down the road. Keep these predictions in mind as you observe, invest, and enjoy the ride.
Sources:
Long-Term Price Predictions | CoinPriceForecast