Cryptocurrencies have come a long way since the invention of bitcoin in 2008. Backed by innovative technology, blockchain, the concept of cryptocurrency as a digital asset has encapsulated various arenas. The digital currency is not merely looked at as speculation. Instead, in 2020 they are perceived as investment vehicles, security tokens representing a tangible asset, a mode of payment, and much more.

Future of Cryptocurrency in 2020 and Beyond

In this article, we are going to take a look at how the future of cryptocurrency looks like taking into consideration today’s advancements in the sector.

1. Investment Vehicles

A survey, consisting of 400 institutional investors and hedge fund managers, reveals that nearly 72% are keen to make investments in digital assets. The industry has always held the interest of retail investors. Now, with the onset of institutional investors, cryptocurrencies are much more likely to be treated as investment tools alongside stocks and gold.

2. Easing Regulations Surrounding Cryptocurrencies

Governments have now started drawing regulations to provide a legally compliant environment for trading and investments in cryptocurrencies. In the near future, we are likely to see countries drawing regulations pertaining to the use, trade, and storage of digital currencies.

3. Crypto Causing Disruption in Banking and Finance

More than 20 countries have already started exploring the concept of Centrally Backed Digital Currencies (CBDC). As per this research, the costs of financial transactions using cryptocurrencies are significantly lower than transaction costs in the traditional economy. According to another research, 90% of the U.S and European banks have already started exploring blockchain and cryptocurrencies.

4. Cryptocurrency Exchange Hub

Exchange hub like Finxflo a hybrid liquidity aggregator offers one-stop-solution for traders to access the best prices in the cryptocurrency market with minimal hassles. Additionally, such an exchange hub enables storing, managing, and buying or selling digital assets from a single portal instead of navigating between multiple interfaces.

5. Cryptocurrency Mainstream Adoption

A recent survey reveals that 36% of small-medium businesses accept bitcoin as a payment method in the U.S. This number is likely to grow in the upcoming years as crypto becomes mainstream. In 2020, major retailers including Microsoft, Wikipedia, Burger King, Starbucks are a few names that accept bitcoin.

6. Innovation with Crypto Tokens

For instance, smart locks (an IoT device) can only be unlocked if an owner deposits cryptocurrency tokens into a specified wallet. A smart contract with encoded rules can further automate this system.

7. Decentralized Applications

Cryptocurrency tokens will serve as the fuel to the decentralized application network. These tokens serve as a function of utility for accessing products and services of dApps. Since dApps are rapidly being developed for multiple industries, subsequently there will be a lot more digital currencies in the next few years.

Final Remarks

Owing to its advantages and subsequent developments in the cryptocurrency arena, the perception of this entire industry has transformed. The question has changed from ‘Is there a future of cryptocurrency’ to ‘What is the scale of implications of cryptocurrencies on our future’.

Our Social Media

FINXFLO is the world’s first cryptocurrency exchange aggregator and Defi protocol aggregator. It aggregates rates and prices from the world’s leading exchanges