Cryptocurrency market is well known for its incredible volatility. In this bear market, it is difficult to comment on the performance of cryptocurrencies in 5 months from now. Nevertheless, the crypto experts keep presenting their speculations from time to time.
So, this is one question that I frequently come across in my interviews and summits; what does the future of cryptocurrency hold or cryptocurrency market in 5 years. Therefore, I decided to put forth my conjecture today.
Given a chance, some people would pop up with the saying that cryptocurrency bubble is the replication of the internet bubble. However, the question remains tall, whether this is the year 1994 or the twilight of 1999. Without further ado, let’s switch to the crypto world in 2023.
- Bitcoin price will soar up: Despite the vigorous fluctuations in Bitcoin price, the number one digital asset shall continue to rule the spectrum. It goes without saying that Bitcoin is the most battle-tested crypto asset. The world never had a digital entity as global and scarce as this. Therefore, the usage of Bitcoin will outpace its price.
I would rather not put a price tag because it would be too early to put one yet, I am bullish about its price soaring up 5 years down the line.
- Digitization of commodity market: Advancement in blockchain technology will facilitate the formation of online marketplaces and induce a huge amount of online supply. It will also make your payment transactions convenient by hooking your device into a standardized payment service.
The volume of digital commodities traded readily is certainly expected to shoot up.
We can also expect frequent hiring of miners online who will provide their hash power remotely.
3. Decentralization of exchanges: The cryptocurrency exchanges will adopt decentralization for building a liquid crypto market. Decentralization will interconnect the entire market, driving the exchanges completely well exchangeable. Country regulations are expected to play a pivotal role in the decentralization of exchanges.
In 2023, several trades might not be settled on the blockchain. R&D is at its infancy stage in the area of additional layers of abstraction off-chain. If it goes well, trading of digital assets without the public trace of their mobility will be facilitated.
- Tokenization of economy: More projects will flock around legal tokenized equity structure with the emerging tokenized economy. Benefits of the tokenized economy are many – liquidity, ease of trading, every exchange’s ability to list its assets, etc.
- Nations struggling with tax collection: With a global economy wherein the asset system is unseizable at its disposal, I am sure governments will struggle with their tax collection phenomenon. If you are wondering how, let me raise two questions. Where do you think will the citizens be able to deposit their tax? Why pay a value that is overcharged as compared to the value provided? The answer lies in these two questions.
Besides the speculations above, at this moment, I am certainly pellucid about the fact that the battle to gain control of and access to distributed value technologies will be intense with the evolution in crypto space in the next 5 years.