The Internet Never Saw A Positive Response from Everyone When It Was First Introduced
All of us use the internet today like it is no big deal. We no longer talk about it like it is something new or dangerous or unpredictable any longer. But did you know that the internet’s evolution to what it is today has been a long and storied one?
There were lots of people who feared that their privacy will be lost, many felt that the internet was never going to be successful and it was yet another way of attracting investments. When the dot com bubble burst in March 2000, many speculators lost, but the internet wasn’t meant to be a scam or a fraud. It continues to grow till this day by incorporating new technologies and fostering innovation in its usability.
History Repeats Itself
Cryptocurrency, we feel, is going through the same phase as the internet. It took some time for people to realize the advantages of decentralized money, and now almost every investor wants to jump on to the Altcoin investment train simply because it is too good to be ignored.
There are two aspects of looking at Cryptocurrency:
- The idea of decentralized money that it nurtures
- The possibility of growth it offers to investments
While the markets are volatile right now, there is a point where its acceptance will spread and subsequently stabilize the Cryptocurrency market. Remember that the internet was established by the 1960s and it took the internet almost half a century to be able to become as popular as it is today.
The same way, Cryptocurrency may notice challenges in terms of acceptance with many people accusing the whole thing as a scam. And while there is a chance that the bubble may burst, the underlying concept that Cryptocurrencies nurture will grow and be accepted more widely because Blockchains are truly game-changing for businesses.
What Happens Next?
There are lots of companies embracing Blockchain, many new startups are being launched and ICOs have become a brilliant way of crowd-funding projects.
Success And Failures are Bound to Dictate the Cryptocurrency Playing Field
Just like the dotcom bubble saw many dot com companies open in a short period of time, Cryptocurrency is attracting lots of new startups too. Some may not be able to grow at all because of weak infrastructure, an ineffective leadership team or lack of ambition. Others will be able to prove their mettle and rule the grounds.
Investors will have to read between the lines to find out how strong the management is, and how well the corporation has planned for the future. Some companies may have a good concept that it wants to develop, but they may not have a good development team to make sure that the idea is accurately realized.
Regulations And Their Impacts
At the core of all Cryptocurrencies is the idea of decentralization where a single person or entity in not in control of the currencies. But the lack of regulations makes it somewhat unreliable too. ICO scams have abounded only because there are fewer regulations that oversee the ICO launches.
The whole concept of Cryptocurrencies is very new, and so it cannot be bound to age-old laws either. Many governments want to regulate the Cryptocurrency market and the impacts of these regulations can be:
- Laws surrounding the issuance of ICOs and procedures for returning the investors their currencies in the event of a failed ICO.
- Fewer illegal use cases of Cryptocurrencies
- It may deter scammers but it may also reduce the level of innovation experienced by the market at this time.
As Cryptocurrencies mature, its users support the decentralized nature of these currencies. Regulations will have to be formed in a way that does not damage the very essence of decentralization for which Cryptocurrencies are popular.
Legacy Companies Embracing Cryptocurrencies
Making payments using Altcoins like Ripple can considerable reduce the transaction fees and the time it takes for conducting global transactions. But more than using the Cryptocurrencies, governments and legacy organizations are turning their focus in the many advantages that Blockchain can offer.
Dubai is already in talks of becoming the world’s first Blockchain-powered government. There are lots of other organizations that are either using Blockchain technology already and others are planning to embrace it soon.
The growth of Blockchain technology is giving people a better insight into what Cryptocurrencies are capable of. People are able to understand in a better way how decentralized currencies can be better for conducting transactions than the usual fiat currencies that are used now.
Companies like Microsoft, Overstock and IBM have already been involved in various ways in using, sponsoring or developing Blockchain technology. There are lots of other companies who are talking about using it which points towards a digital transformation that will soon be underway throughout the industries.
A Rise in Cyber-security
Ransomware attacks are starting to become a threat where Cryptocurrencies are being demanded from the owners. Exchanges will be required to increase the overall security that they offer and ensure that their security measures are regularly updated and upgraded in order to keep hackers at bay.
New technologies require new security measures to be put in place; and when the technology results in the creation of money, it becomes even more important that the Blockchain and exchanges and wallets utilize high standards of security.
Bright Skies OR Cloudy Days Ahead?
So to answer the question whether Cryptocurrency will succeed in future or not, it is important to understand that the technology it introduced is already being used by many organizations already.
While the investment market remains unpredictable and investing in Cryptocurrencies may eventually lose its charm, Cryptocurrencies will see growth and it will eventually stabilize as more people understand it and accept it.
The change from current fiat currency to complete digital currency is a long journey, and we are not sure if it may even happen. But Cryptocurrencies will make it big through the technologies they fuel and the changes they bring in the existing way of business.