The number of digital coins has been increasing since 2013. Since cryptocurrencies are unregulated and most blockchains are open-source, anyone can create a coin from scratch with minimal effort. The fact that it is easy to make a coin has led to the market being flooded with about 15,000 cryptocurrencies at the time of writing.
According to statistics, about 775 digital coins have been created every year since 2013.
With this in mind, experts predict that the future could see an increase in altcoins, most of which will have little or no value.
2021 has already seen meme coins take over as the success of popular options like Dogecoin and Shiba Inu inspires a legion of imitator altcoins to come to the fore.
Of course the opposite could also happen and there could be a massive consolidation in which only a handful of coins survive.
Bitcoin could be the global reserve currency
Another bold prediction about the future of cryptocurrencies is that Bitcoin will replace the dollar by 2030 as the reserve currency of the global economy. Throughout 2021, Bitcoin has had a bullish rally with its price reaching new all-time highs despite its volatility.
According to Alex Gladstein, Bitcoin expert and head of strategy at the Human Rights Foundation, “Bitcoin is a device whose purpose is to replace the dollar as the world’s reserve currency.”
According to Gladstein, Bitcoin’s fixed supply gives it an advantage over fiat currencies such as the dollar that have seen a wave of money printing by the Federal Reserve.
“Looking at the balance sheets of the Federal Reserve or the European Central Bank, it is remarkable how much new money is created. It’s historic,” Gladstein added.
Bitcoin provides an alternative to currencies issued by the central bank as it is decentralized and therefore not controlled by any central authority. In Gladstein’s prediction, it could take decades before Bitcoin replaces the dollar as the world’s reserve currency, however, the process is inevitable.
Gladstein believes that the self-interest of governments will push them to adopt Bitcoin as a superior store of value and the most difficult form of money.
Cryptocurrency will be more regulated
Cryptocurrency remains highly unregulated and conversations to make this a safe place for all investors are ongoing.
Clear and forward-looking regulations will make the cryptocurrency space less attractive to cybercriminals and increase protection for cryptocurrency enthusiasts, developers, and investors. Going into the future, experts predict an increase in regulatory focus on the entire crypto space.
Regulators in the United States have already issued a statement highlighting a plan to increase oversight over cryptocurrency-related institutions.
With the increasing adoption of cryptocurrencies, regulators are starting to pay attention to the industry to counter anti-money laundering and illicit financial transactions.
The Financial Action Task Force (FATF) also recently published a set of guidelines designed to help jurisdictions around the world define and formulate laws for cryptocurrencies and cryptocurrency-related service providers.
All this points to a future in which cryptocurrencies will become mainstream but with the full supervision of regulators.
Conclusion
Cryptocurrencies are making a surge, but it’s only been a little over a decade since the advent of Bitcoin. While it’s difficult to accurately predict exactly what the industry’s outlook will be in 10 years, current events offer valuable clues to what the future will hold.
At the moment, regulators are paying more attention to the industry, more cryptocurrency-based projects emerge every day, and Bitcoin is more ready than ever to replace the dollar.
