Throughout the world of finance (decentralized and traditional), everyone from the managers of billion-dollar hedge funds, to the lowliest of NFT degens has some theory on where crypto is heading. The latest massive sell-off in cryptocurrency markets has many outside the world of blockchain convinced that the future is bleak. Again. Yet still, the planet suffers no shortage of perma-bulls, Bitcoin & Ether maximalists, metaverse enthusiasts, and hoards of crypto cheerleaders.
One such individual is Microstrategy C.E.O. Michael Saylor, who continues to gleefully encourage others to invest all they have into Bitcoin specifically, under the belief that it will soon take precedence over the U.S. dollar as the reserve currency of the world - a conviction he holds despite the fact that his bet on Bitcoin has technically now cost his company over one billion dollars (if they were forced to liquidate their holdings today).
However, Michael Saylor is also known for another remarkable feat of monetary depletion: losing six billion dollars in a single day during the dot com implosion of the early 2000s. A staggering loss, but perhaps even more surprising, is that he ultimately returned to billionaire status through his Bitcoin investments. Now, with his billionaire title threatened yet again, he's doubling down and betting even bigger on Bitcoin. For the casual investor, I'd say this is a pretty positive indication of where the market is headed in the long term. The future of cryptocurrency, although highly uncertain in the short term, appears more optimistic with longer outlooks.
Where Are We Heading?
Even if more conservative estimates are used, many analyses show that the global cryptocurrency market will more than triple by 2030, eventually reaching a total valuation of nearly five billion dollars. Even if they don’t understand the underlying technology, or agree with much of the libertarian ethos of the space (censorship is wrong, be your own bank, etc.), more traditional investors and businesses will not forgo an opportunity to seize profit once they see the tremendous amount of wealth generated by the market, and all the ancillary business that takes place to support it.
For example, the hardware company Nvidia has made billions of dollars from the world of cryptocurrency, all without buying a single coin or token. Instead, they produce the hardware that enables Proof of Work blockchains like Bitcoin, and Ethereum (as it stands currently) to operate and expand. It would be logical to assume then, that companies such as these now have a vested interest in the continued success of crypto. If this is the case with enough companies and industries, there’s reason to believe that crypto will indeed continue an upward trend over time.
Additionally, there are endless opportunities in the emerging world of web3 art, collectibles, and gaming which we saw take off in 2021. These markets, like the overall crypto market, are currently down. However, anyone who's in the space knows that the bear market just offers time for these companies to keep their heads down and keep building without too much outside chatter or community FUD. As such, we should assume that these facets of the crypto industry will only continue to grow, refine themselves, and find new ways to utilize the assets in this emerging technological space. It's also worth noting that many of the best-performing cryptocurrencies of the future may not even exist yet, as it is with all businesses. Others that may be on the smaller end, may rise to prominence and become unicorns in the not-too-distant future.
The Wider Tech Movement
The main point here is that this isn't really about "cryptocurrency" but about the wider technological movement that concept has given birth to. Many people fail to see the greater picture here and get caught up in the "pump-and-dump Ponzi scheme" rhetoric without realizing that the next great technological revolution is happening right in front of their eyes. With that said, the future for cryptocurrency, decentralized finance, and global metaverse interaction is bright. We're on the brink of a paradigm shift all driven by cryptocurrency and the philosophies and ethos behind it.
However, it's also important that casual investors keep their investments in check, especially as we see this wider adoption. Much like the early days of the internet, there are predators and innovative criminals lurking around every corner, preying on unsuspecting newbies. This presents problems for investors and organizations alike, especially considering the decentralized nature of the crypto space. After all, who do you go to when there's no centralized authority to report crimes? And how do you even know if you've been a victim of a crime or you just made a poor investment? Sometimes, those things go hand in hand.
The point is that there are plenty of opportunities for road bumps, accidents, and horrific crashes along the way. It would seem then, that perhaps the most important factor regarding cryptocurrency’s continued success will be governmental regulation. Unfortunately, as recent times have illustrated, predicting what our lawmakers will do is perhaps even more difficult than predicting financial markets. As with all new technologies, the law is always years behind the tech and always playing catchup.
What the Future Holds
As the space progresses, we'll see a massive number of victims left in the wake when we look back at this time in the future. That's inevitable and it's already a reality. We'll also see an unimaginable level of innovation with countless millionaires & billionaires who forge their path, stake their claims to financial freedom, and become the next industry thought-leaders along the way. Ultimately, cryptocurrency isn't going anywhere but up, and anyone who's truly interested should use this time to learn, get involved, and build. If you play your cards right, you'll be better off for it in the long term.
Until Next Time
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