Cryptocurrencies are inventions of the decade aimed at sanitizing the way we look at money and finance creating a decentralized medium for digital barter. However, like every other new invention cryptos' future has been an open subject following the invention of the world's first decentralized asset back in 2009. So many questions have been asked like? will cryptos replace the use of fiat as we know it? are cryptos secure and equipped for mass adoption?. These are just a few issues that have made investors shy away from crypto.
- What do the future hold for crypto, Can we attain mass adoption in the future?
- What are some of the use cases of cryptos that assure us of a better future?
Below are my thoughts on the future of cryptocurrency by driving mass adoption.
The future is here
First of all, I would love to say that the future of crypto depends on mass adoption and its practical use in the real world. Attaining mass adoption at this stage of the crypto revolution has been a subject of utmost importance. Thousands of new projects continue to add value and drive mass adoption to the common man, creating a bridge to connect the rich and poor to the world cryptocurrencies where the traditional system becomes obsolete.
Cryptocurrencies are still young, and thus many of the envisioned use cases for them have yet to fully materialize, often because the infrastructure is still being built. Security tokens, hybrid tokens, derivatives, crypto commodities, privacy coins, stablecoins, work tokens, discount tokens, and many more have still to establish themselves but are likely to gain a foothold as crypto adoption increases and the ecosystem matures.
Over the past few years, various projects have made a significant improvement in crypto uses cases hinting at a better and cryptic future for all in the crypto sphere. Below are some of these systems and they have contributed to a better crypto world now and great improvements in the future:
Digital Borrowing services
Lending is a pivotal part of any financial system, traditional lending are mostly accompanied by huge interests, and collateral security and a rigid repayment system that favors only the local bank has long plagued the retail investors and entrepreneur.
Unlike traditional markets, digital lending has become much easier and more profitable following the buzzing defi movement that enables individuals to collateralize fiat loans against cryptocurrency and vice-versa. On the Ethereum network, lending services such as Maker, Compound, and Instadapp have grown, with hundreds of millions of dollars’ worth of assets now locked up in lending protocols. This new project opens the way for trustless lending and repayment of loans.
What it means for the future of crypto
Creating better and more transparent lending services on already established networks like the Etherum will only welcome the arrival of institutional investors and retail investors who could collateralize their assets and receive interests for staking their assets on the network without the need for intermediaries like banks and large co-operations. This system can completely eliminate the need to receive loans from banks and complete the adoption of cryptos. With the arrival of more investors who are willing to invest comes the arrival of lenders(both small and large) willing to participate in network. This will actively affect the number of people active with cryptos.
Centralization governance refers to the process in which all decision-making within an organization is concentrated on a specific leader or location. In a centralized organization, the decision-making powers are retained in the head office, and all other offices receive commands from the main office. This type of consensus usually leads to dictatorship and failed leadership in some cooperations.
Decentralized governance might be the new future of decision-making in companies operating in a decentralized way. On-chain voting is a very effective means of ensuring provable voter turnout. Blockchain governance has gotten more sophisticated since then, with Dash, introducing a successful budget voting mechanism that’s been emulated by scores of projects. There are now crypto assets whose primary function includes governance, such as 0x, maker, decred, and dfinity. In addition, crypto projects such as Aragon incorporates governance by enabling token-holders to vote on key decisions using a dapp.
What it means for the future of crypto
Creating a decentralized consensus mechanism could shape the way decision making is made in the real world. Think about a competition where users' votes are the basis of selecting a winner. An on-chain voting system could ensure a transparent polling system where winners are selected solely on the majority choice. Think about how transparent electoral processes could get with a decentralized polling system. These possibilities could become reality in the near future.
Decentralized Social media(Steemit)Centralized social media platforms are enjoying a time of premium success with million of subscribers using their network, platforms like Facebook, Twitter, and Instagram have enjoyed an unchallenged dominance in the social media world. In 2020, an estimated 3.6 billion people were using social media worldwide, a number projected to increase to almost 4.41 billion in 2025. Creating a decentralized social media platform like steemit that integrates blogging and networking while rewarding content creators for participating in the platform is groundbreaking and I believe this platform will drive millions of people toward mass adoption.
What it means for the future of crypto)(steem)Steemit could rule the world of social media or ultimately become a challenger to the centralized world of social media in the future with its amazing mechanics and diversity. Steemit as a social media that reward users can gain the recognition it deserves if people understand how it works if millions of people understand how it works this will unfold a future of limitless possibilities and in turn, drive mass adoption and I believe that the steem price will soon reclaim its all-time high in the future.
PayPalPaypal provides an easy way to send and receive money seamlessly. This provides many benefits for users who wish to transact in a secure, simple, convenient, and free of charge medium to transact. On Wednesday 22nd October 2020, PayPal announced its entry into the cryptocurrency market. The payments giant, with 346 million active accounts around the world, pledged to make cryptocurrency “a funding source for purchases at its 26 million merchants worldwide.”
Paypal will Initially, support tops assets like Bitcoin (BTC), bitcoin cash (BCH), ether (ETH), and litecoin (LTC). For the start, PayPal's service does not allow bitcoin or other cryptocurrencies to be withdrawn or deposited. Once you buy the coins, they stay in your account until you sell. However, this service is already is still very young and more updates will be added with time.
What does this mean for cryptoPaypal a giant payment platform adopting cryptocurrencies is such big news, this new is evidently fueled the bitcoin price to new highs in 2020. As an institutional investor, PayPal may have opened an avenue for more institutional investors and more payment platforms to adopt crypto wallets and in the future will process crypto payments and more uses cases. I believe this is just the beginning of institutional adoption, more platforms like Visa, Payoneer, Walmart, and more corporations.
The use cases above are just a few of what the future could look like with cryptocurrencies, a digital village, a peer to peer lending service, and decentralized governance. I personally think will lead to mass adoption and the long-term use of cryptos.
- Is awareness and usage of cryptocurrencies growing in your country?- Definitely cryptos are gaining recognition in my country.
- What is the attitude of the government to cryptocurrencies in your country?- I would say they don't have a big deal with it, that is why there hasn't been any law banning the use of cryptos in my country.
- Are laws and regulations being introduced to help or hinder the growth of cryptocurrencies?- I would say none at the moment.
- Do you have a positive or negative outlook for the future of cryptocurrencies?- My long time outlook o crypto is entirely positive, steem and Etherum especially.
- How do you think cryptocurrencies can benefit society in the future?- I think cryptos can actually provide freedom from banks and their self-enriching policies.
- How do you think cryptocurrencies can reach mass adoption?- I think extending the power of cryptos to the common man is a nice step, cryptos need to be a safe haven asset for all not the few privileged.
- Do you think the global economy will change if cryptocurrency usage becomes commonplace in all countries?-YES, I believe so.
Which cryptocurrencies do you think will emerge as the most widely used in the future?-Bitcoin as always, however, steem dedicated individual is aggressively promoting steem in Nigeria, we hope to make steem a household name.
This post was made in response to #steemcryptochallenge, Week-4- The future of cryptocurrency.