The future of cryptocurrencies is a topic that is increasingly debated by sector technicians. Read what are the most likely trends and developments in cryptocurrencies.
cryptocurrencies of the future:
Cryptocurrencies were born relatively recently, but the development they have had in such a short period of time and the increasingly advanced technologies offered by the fintech sector push finance experts to discuss what may be the most interesting and important aspects to keep in mind. consideration regarding the future of Bitcoin and all other virtual currencies.
How much cryptography will be able to improve their security, what are the real expectations that can be expected from the value of Bitcoins and what can be the tools to be used to try to limit the use of online coins to launder money are always issues. more on the agenda.
In this article we will consider three issues considered of considerable importance by specialists in the sector: the development of Blockchain technology, what to expect from Bitcoin and what the future use of cryptocurrencies will be.
A technology that is increasingly attentive to privacy:
Andrew Poelstra, research director of Blockstream said that one of the development areas that companies engaged in building Blockchain systems are focusing the most on is Zero-Knowledge Proof systems.
While this is not the article to investigate a rather complex topic, we can say that it is the technological basis for protecting user privacy.
More and more efficient and powerful cryptographic solutions implemented in security blockchain systems for currencies such as Bitcoin and Ethereum could significantly improve the privacy and security of decentralized anonymous payments.
According to many cryptocurrency experts and developers such as Jaq Sidhu (Syscoin) this development could make private transactions cheaper and faster than what is currently available.
The future of Bitcoin:
But the debate that undoubtedly attracts the attention of most investors concerns the future of Bitcoin and other cryptocurrencies. There are many analysts who believe that what virtual currencies need to have a bright future is the entry of regulations and more controlled money, which would add credibility to a completely virtual market.
It is thought that what may be needed at the moment is an Exchange Traded Fund (ETF) which could make it much easier to invest in virtual currencies. Obviously, this hypothesis takes for granted the idea that there is a willingness on the part of a large number of people to invest in cryptocurrencies. The main aspect of the whole problem is that it certainly cannot be guaranteed by the opening of a fund.
On the other hand, there are scholars who argue that cryptocurrency is a subject that nowadays has too many flaws to be able to work in the long run. For example, Harvard University economics professor Kenneth Rogoff argues that it is a far less efficient payment method than those that rely on authority such as a central bank.
How we will use cryptocurrencies in the future:
From a tool of pure financial speculation, cryptocurrencies are slowly gaining greater solidity and trust from platforms that accept payments in the main online currencies available today. Nevertheless, it is still a clear minority, for example Amazon does not accept any cryptocurrency at the moment.
It can be said that at the moment the relative complexity of virtual currencies compared to conventional ones is the main reason that leads people to lean towards other options. Except for those with more advanced technological knowledge.
If cryptocurrency developers aspire to make their products a universal reality they will have to think of a method to try to satisfy very divergent points. A cryptocurrency will need to be programmed in a complex way, but in a way that consumers can understand how to use it. It will have to continue to offer consumers anonymity, while creating a structure that allows it not to be a channel for money laundering and tax evasion.
Conclusion:
Making predictions on a complex and constantly developing technological issue such as cryptocurrencies is very complex. What seems evident is that cryptocurrencies need further development that can reduce their main problems.
While the technologies to protect privacy are evolving in the right direction, on the other hand, developers still seem to be looking for the passage to make cryptocurrencies accessible to all.
Comments
Post a Comment
If you have any doubts.Please let me know.