What is the future of cryptocurrency?
Cryptocurrency has taken the world by storm in just a few years of popularity. With highly influential individuals such as Elon Musk openly supporting and encouraging investments in cryptocurrency, the popularity is sure to rise.
But the rise in popularity does not mean the value of the cryptocurrency will continue to rise at a constant rate. Even the value of bitcoin, the most popular cryptocurrency, is not constant or even high for an extended period. Just in 2021, bitcoin has had quite a bit of difference in its highest value and its lowest value. So, the future of cryptocurrency can be difficult to predict to a certain extent.
Future of money
Several financial experts already expect cryptocurrency to become the future of money. A major hint towards this future was made when Security and Exchange Commission Chairman Gary Gensler expressed his positive opinion about the regulation of cryptocurrency. Clear regulation of cryptocurrency will make things easier for potential investors. On the other hand, the Chinese government has strictly banned the trade of cryptocurrency within the boundaries of the country.
Recently, bitcoin ETFs were first launched in the market. The Exchange Traded Funds (ETFs) make it easier to track bitcoin.
How does bitcoin ETFs affect investors?
Although, it is a bit too early to predict the extent of the effects of bitcoin ETFs. Investments did increase in the first week of its release. These are all efforts to make cryptocurrency more accessible and approachable in the traditional investment markets. Investing in bitcoin ETFs is not much different from investing in cryptocurrency. Both carry the same amount of risks.
Acceptance and adoption
Slowly, companies are starting to see the potential in bitcoin. Many global companies have also made investments in cryptocurrency. They are encouraging their customers and clients to use cryptocurrency as well.
The large influx of bitcoin users will create a demand for bitcoin hosting companies. These companies will be responsible for providing a secure space for the clients to handle their cryptocurrency.
No matter what, it is hard to predict the exact future of bitcoin. So, as many investors recommended – invest only what you can afford to lose.