CRYPTOCURRENCY AND ITS FUTURE

A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography. The currency started making its presence with Bitcoin in 2009. The price of bitcoin when introduced in 2009 was $0. At that time people were unaware of these of it as it was a new concept but still very few like-minded people bought it who knows the future of cryptocurrency. I wish I could even purchase it but unfortunately I was 9 years old at that time. Talking about the present bitcoin crossed $60000 today which was a phenomenal increase.

Talking about the future of cryptocurrency, Over the years it has been observed that the cryptocurrencies have been highly volatile and component, especially the Bitcoin. This volatility mainly depends on the decisions taken by the United States' financial regulators on the usage of Bitcoin. However, the future of Bitcoin can be summarized as follows -

·   With its increasing popularity, Bitcoin users predict that by 2024, almost 94% of different types of Bitcoin will be released

·   A forecast by Jeremy Liew, Snapchat's first investor, estimates Bitcoin to hit a staggering $500,000 by 2030.

·   The popularity of this form of currency is expected to grow exponentially, as it is decentralized, safe, and anonymous

·   The fact that a huge section of technology-savvy individuals and companies are favouring the decision of using different form of encrypted currencies clearly indicates that the future of Bitcoin or cryptocurrencies as a whole is going to be bright.

While Some economic analysts predict a big change in crypto is forthcoming as institutional money enters the market. Moreover, there is the possibility that crypto will be floated on the Nasdaq, which would further add credibility to blockchain and its uses as an alternative to conventional currencies. Some predict that all that crypto needs is a verified exchange traded fund (ETF). An ETF would definitely make it easier for people to invest in Bitcoin, but there still needs to be the demand to want to invest in crypto, which might not automatically be generated with a fund.

Last month, Treasury Secretary Janet Yellen called Bitcoin a “highly speculative asset,” voicing concerns over its sometimes-illicit uses and large environmental impact to “mine” the currency i.e. to limit the number of bitcoins in circulation, users have to complete complicated mathematical equations using computer server farms that consume a huge amount of power.

So everyone has different perspective regarding the future but according to me till 2050 the future of cryptocurrency is in good hands. After 2050 the crypto market may crash due to the limited supply and unlimited demand.

5 MUST CRYPTO CURRENCIES TO INVEST OTHER THAN BITCOIN

1)  ETHEREUM (ETH)

It is a decentralized software platform that enables Smart Contracts and Decentralized Applications to be built and run without any downtime, fraud, control, or interference from a third party. The goal behind Ethereum is to create a decentralized suite of financial products that anyone in the world can have free access to, regardless of nationality, ethnicity or faith.

2)  LITECOIN (LTC)

It was launched in 2011, following the footsteps of bitcoin, and often has been referred as the silver to Bitcoin’s gold.  Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses "scrypt" as a proof of work, which can be decoded with the help of CPUs of consumer-grade. Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate and hence offers a faster transaction confirmation time.

3)  CARDANO (ADA)

This crypto should be there in everyone’s wallet as this could be the next bitcoin in coming 10 years according to many economic analysts. It is an “Ouroboros proof-of-stake” cryptocurrency that was created with a research-based approach by engineers, mathematicians, and cryptography experts. The team behind Cardano created its blockchain through extensive experimentation and peer-reviewed research. The researchers behind the project have written over 90 papers on blockchain technology across a range of topics. This research is the backbone of Cardano.

Due to this rigorous process, Cardano seems to stand out among its proof-of-stake peers as well as other large cryptocurrencies. Cardano has also been dubbed the “Ethereum killer” as its blockchain is said to be capable of more. That said, Cardano is still in its early stages. While it has beaten Ethereum to the proof-of-stake consensus model it still has a long way to go in terms of decentralized financial applications. 

4)  POLKADOT (DOT)

Polkadot is a unique proof-of-stake cryptocurrency that is aimed at delivering interoperability between other blockchains. Its protocol is designed to connect permissioned and permissionless blockchains as well as oracles to allow systems to work together under one roof.

Polkadot’s core component is its relay chain that allows the interoperability of varying networks. It also allows for “parachains,” or parallel blockchains with their own native tokens for specific use cases. 

5)  RIPPLE (XRP)

This crypto should be there in everyone’s wallet. XRP is the native cryptocurrency of the Ripple protocol. Ripple is both the blockchain network that XRP is transferred over, and the name of the company that created the crypto token and helps to push its adoption at banks and other cross border payment companies.

The XRP coin is designed to improve speeds over existing cryptocurrencies, making it especially attractive as a payment currency. For example, Bitcoin takes as much as 10 minutes to confirm a transaction, while confirmations using Ripple and XRP take as little as 5 seconds. It’s easy to see why Ripple is considered one of the best investments in the cryptocurrency industry.

I hope this article helped you all in knowing about the crypto currencies and its future.