Over the past decade or so, you have probably heard about the terms of bitcoin and blockchain more times than you can count. There is a good reason for that, and unless you have been living under a rock, you probably have a general idea of what they are. Despite these technologies and trends being over ten years old, however, there is still a ton to be desired as they are nowhere near their potential.
For various reasons, bitcoin as the leader of the cryptocurrencies as well as the technology that powers them all in the blockchain is still not mainstream. Due to the lack of government and bank effort to push them forward, they have stayed in a weird place for all these years. Constantly prominent and appealing but never quite there yet. More people have to know about cryptos and start investing in them, that much is certain.
In this article, we look into the immediate future and examine the likely scenarios that await us next year. The dreadful year of 2020 is finally coming to an end, and in less than a month and a half, a new one will arrive. Everyone is eagerly expecting 2021 looking at it like a savior that will deliver us from all the bad that has happened this year. Therefore, there are high hopes for the trends regarding bitcoin and blockchain. In the following section, we will talk more about them. To learn more about the whole industry, make sure to check out awesomejelly.com and educate yourself further.
1. Banking will become more digital
The whole world has seen that we do not really need all the bureaucracy that is generally thought to be the best way of doing things. In practically every government institution there is a ton of paperwork to be filled out, queues to be waited in, and countless employees to talk to. This is especially true with banks where you literally always have to wait your turn no matter what you came in for. Considering how much the COVID-19 pandemic has changed all of this, people now know that most of this can be done online. Going digital with such activities and needs makes it easier for everyone involved, which is why online banking in every form will surely enjoy a renaissance next year. This is important for bitcoin as digital currencies will lead the way and become more used by everyone, while blockchain and all of its benefits will be used in developing the necessary software and platforms. Mobile banking is another important thing already, and it too will become bigger next year as a part of the global digital change.
2. Blockchain is not only for cryptocurrencies
Although they are practically synonymous, there is a lot this technology can be used for except digital currencies. The first blockchain was developed in theory all the way back in 2008 and came to existence a year later thanks to the founder of bitcoin. These are practically ledgers of all transactions done in a given virtual currency, and anyone can access them and view them. Financial institutions and governments are very hesitant to incorporate such a decentralized network because they do not want to share such information with everyone, and also because it would mean no more intermediaries and third parties overlooking every transaction and taking a small part. This prevents blockchain from helping people in other areas as well, for example, the speed of transactions, tracking assets, stopping hackers and cybercriminals, and verifying the authenticity of things. Blockchain is a technology that can also help in medicine, voting, communication, and storage, and virtually any business can incorporate it in some way, shape, or form. More of this will surely happen in 2021.
3. Regulations will be tightened
As mentioned a few times, cryptocurrencies have been in existence for more than 10 years, 11 even. While not nearly enough people are recognizing their potential yet, those savvy enough are actively investing and enjoying the benefits of bitcoin and its many cousins. They are entering the mainstream media more and more, and considering the fact more of them appear all the time, they can only grow in popularity and importance. Still, governments are trying to impose their laws over cryptos and limit their use, afraid that it will push them out of people’s decision making regarding finances and render them useless. The banks are the same, but they are still crucial in dealing with money. Both of these institutions are extremely slow in responding to tech issues and advancements, and most of the top politicians and bank senior employees are completely tech illiterate. Once this changes and when younger generations become more involved in decision making, crypto regulations around the world will become more clear and set. Since the aforementioned digital banking, blockchain, and bitcoin are the most important, they will be dealt with first and everyone will finally be able to enjoy their full benefits.
4. Cryptos will continue to rise in value
Some of the most favorite predictions everyone has about all of this is how much bitcoin and the rest of the virtual currencies will jump in value. Notorious for their highly volatile spikes that are capable of making millionaires overnight, as well as rendering someone near penniless, top cryptocurrencies have kept stable values for the most part of 2020. Considering what has happened in the world, this is a pleasant surprise indeed and a good sign for the future. Everyone fondly remembers December of 2017 when 1 BTC almost crossed $20,000 in worth. Almost three full years have passed since then, which is a long time in the worlds of finance and technology. Because of this, many estimate a huge jump sometime next year, with the most eager of them narrowing it down between December of 2020 and February of 2021. These forecasts suggest that 1 BTC will go over the seemingly fantastical threshold of $100,000 and once again change the whole industry. Last time, all of the other currencies followed suit and people experienced a very sudden boost in earnings. Nobody can claim anything with certainty as this is a very uncertain and unpredictable business, but cryptos will surely continue to rise well into next year.