With headlines screaming about the recent crypto market correction, readers would inevitably become depressed and erroneously conclude that the future is bleak for the industry. However, buried somewhere beneath all the negative news are signs that the entire industry is heading to a brighter, more stable future.
Coinbase CEO Brian Armstrong believes adoption will accelerate to include a billion crypto users in five years. Furthermore, the crypto pioneer Vitalik Buterin predicts that the industry is about to undergo a massive shift that could bring in real value to digital currencies via its use in real economic activity.
A Billion Crypto Users
Some experts have blamed a lack of adoption as one of the reasons for the crypto market’s volatility. The good news is that it will no longer be an issue a few years from now, according to Coinbase CEO Brian Armstrong.
Armstrong, who was responding to a question about cryptocurrency’s international reach during the TechCrunch Disrupt event, firmly believes that the usage of digital currencies will experience a rapid rise in the next five years. The Coinbase CEO predicts that by then, a billion people will be cryptocurrency users, according to a report by Yahoo Finance.
One of the factors that could spur cryptocurrency adoption is the introduction of crypto-friendly regulations. Armstrong believes that under a regulated environment, more crypto firms will issue their own tokens — which are backed by their market caps — to fund future projects.
“It makes sense that any company out there who has a cap table should have their token. Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their tokens.”
What is even more interesting is that it’s not only Armstrong who thinks that it’s just a matter of time before cryptocurrencies like Bitcoin and Ethereum will go mainstream. Various studies such as those done by researchers from the Imperial College London and the research done by Qriously all offer the same conclusion — that mass adoption is bound to happen within ten years.
Ethereum’s Vitalik Buterin Predicts Shift in How People Use Cryptos
Meanwhile, a crucial shift in how the market could value cryptocurrencies is about to happen, according to Ethereum founder Vitalik Buterin. In a Bloomberg interview, Buterin explained that the days of getting people interested in tokens through marketing and hype are coming to a close, but that’s not really a bad thing for the industry.
Cryptocurrency and blockchain firms have relied on marketing to increase awareness of the new technologies. But, as explained by Buterin, there’s already “a ceiling in sight” for this approach. The next step is to convince people of cryptos’ value in the real world, which could make them “go from just people being interested to real applications of real economic activity.”
This could mean that cryptos are about to evolve from being tokens traded by investors to being actually used in the real world. While there are already a handful of crypto holders who use digital coins for transactions, the US DEA says that “the majority of transactions are used for price speculation.” One major benefit to this transition is that it just might help create the stable crypto market that everyone is dreaming of.
On the blockchain side, the technology is perfectly primed to show the world what it’s capable of, aside from powering the networks of cryptocurrencies, as developers start to showcase real-life applications of decentralized systems.