Many predict the influence cryptocurrency will have on established markets will grow as more and more people invest.
This is the speculation when judging against a scenario seeing cryptocurrency shifting from a traded commodity to more of a real-world utility.
Despite cryptocurrency still being in its infancy, more common use and application is already being seen with a changing market.
There are indications exchanges are moving away from acting as single entities tying in all elements of trading, including brokerage and custodianship.
Instead, cryptocurrency markets are beginning to look more like traditional markets with these jobs being performed by separate companies and structures.
If some of the ‘to the moon’ cryptocurrency predictions come off, it can be expected more wealthy investors will have made their fortunes in cryptocurrency.
This prospect of a bright future places the whole industry in good stead, with more innovation and growth likely to come with reinvestment from pro-tech supporters.
The wider growth of cryptocurrency popularity could also incorporate emerging markets where fiscal income and technology amenities are on the steady incline.
The adaption of cryptocurrency within the economy with growing access to day-to-day transactions in more developed markets may have a knock-on effect in developing countries.
This can also be accelerated as access to better internet speeds, smartphone technology and broadening investment knowledge emerges.
With the possible gradual incorporation of cryptocurrency into the economy may come an institutional adaptation, where banks and financial organisations running their own cryptocurrency operations.
The belief of these institutions regarding the requirement to adapt to the fast rise of cryptocurrency, whether through reluctance or opportunity, is being mirrored in government financial policy.
While governments continue to scramble to familiarise and acclimatise to this new and fast-changing concept, some are understanding the value in the technology.
China, for instance, is adopting the use of blockchain technology to digitise their currency, while the US is also discussing the merits and methods of moving away from traditional methods of locking up money.
While some believe a global adoption and adaption to cryptocurrency and blockchain is inevitable, there may need to be a greater advance in technology before this happens.
Bitcoin provided the blueprint for blockchain technology with its arrival in the late 2000s offering the framework for other cryptocurrencies to come into the market.
But while Bitcoin looks likely to continue dominating the market into the future, a growing user base and network sees it continue to tackle growing issues with scalability.
But while wider large-scale use of cryptocurrency could still be some time away, it is still entirely possible that the threat of global adaptation to blockchain technology would encourage government influence.
As cryptocurrency grows, so does the chance of world leaders taking more drastic action to instil stronger measures in an attempt to nullify cryptocurrency’s influence and protect existing monetary systems, markets and institutions.
While most countries have officially expressed their views on cryptocurrency, not all have legislated measures, and even fewer have enacted and enforced detailed specific laws.
There are even fewer governments to have expressed their long-term positions on cryptocurrency explicitly supporting or condemning their citizens’ use of cryptocurrency.
This has several effects on cryptocurrency’s worth, with the lack of government support failing to exclude the potential of future legislation to ban or suppress use.
However, without explicit positions or attempted involvement in either promoting or suppressing cryptocurrency, governments remain external to blockchain network functionality better preserving its status as a decentralised device.
While the big banks and governments push back against the rise of cryptocurrency in the pursuit of preserving monetary systems they control, there will always be threats to a global autonomous, decentralised and free market.
But while the support and embrace of blockchain technology from banks and governments may further bolster cryptocurrency’s wider use and future credentials, the basic decentralised blueprint better ensures demand will always be met by a functioning network in some form.
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