After the boom of 2020 this year the cryptocurrency they have to deal with a series of critical issues, from the environmental impact of mining to the Chinese squeeze, up to fears about possible regulations and competition from state cryptocurrencies. There are also crypto scams, such as the fraud carried out at the end of June in South Africa with the subtraction of 69 Bitcoins from the Africrypt platform, for a total damage to customers of over 2,3 billion.
Understand today what could be the future of cryptocurrencies it is by no means simple, yet it is difficult to imagine a world without blockchain technologies. Just look at the development of smart contracts, NFTs with crypto art and collecting 4.0, or the evolution of DeFi applications for decentralized finance, without forgetting the transactions with digital currencies that are increasingly used all over the world.
Obviously it is important to keep up to date by consulting the expert opinions as the cryptocurrency forecasts, site specializing in information on cryptocurrency investments. In any case, it is essential to be able to interpret the indications of analysts and professionals, to draw one's own conclusions and define an investment strategy in order to operate autonomously and consciously.
What are the challenges that cryptocurrencies have to overcome?
To try to predict the prospects for cryptocurrencies, we must first analyze the challenges that these technologies must overcome. First of all there is the problem of environmental sustainability, in fact, crypto tokens are considered today too energy-intensive tools, due to the mining activity essential for the functioning of blockchain networks.
Another problem is that of decentralizationIndeed, the most democratic and inclusive technologies are also those with the greatest environmental impact, as they use the Proof-of-Work protocol. Conversely, more centralized solutions, such as Ripple and Stellar, can operate with lower energy consumption and more easily, however this approach sacrifices the cardinal principles identified by Satoshi Nakamoto.
Cryptocurrencies also have to contend with the threat of regulatoryIndeed, while governments are developing state versions of digital currencies through central banks, they could penalize altcoins for taking control of these technologies. It is no coincidence that the listing of Coinbase on Wall Street has been interpreted by some analysts from this point of view, or rather a step of cryptocurrencies towards centralization and regulation through ad hoc rules and laws.
What is the future of cryptocurrencies?
From 2009 to today, the cryptocurrency sector has grown significantly, moving from Bitcoin to over 5 thousand digital coins and blockchain technologies. If on the one hand analysts are uncertain about the future of investments in crypto assets, as it is really difficult to understand what their role will be in the coming years, at the same time they agree on the fact that blockchain technologies are now essential systems.
They can be seen as the innovation of digital payment systems, able to offer more efficient solutions for the management of micro-payments and cross-border transactions. Furthermore, these technologies are now integrated and used by companies and banks, which are taking advantage of advantages guaranteed by cryptocurrency services in terms of cost reduction and increased safety standards.
In the panorama of cryptocurrencies it is necessary then distinguish the various technologies, in fact, you can find speculative crypto tokens such as meme coins, corporate solutions such as Ethereum and Cardano, up to stablecoins useful for ensuring greater stability in operations with cryptocurrencies. It is no coincidence that central banks around the world are working on state digital currencies, such as the yuan and the digital euro, so in the coming years we could see the introduction of CBDCs.
An investor must be able to approach these assets in a prudent way, taking advantage of the opportunities in the cryptocurrency world in a sustainable way, through a strategy that takes into account the risks but also the possibilities offered by crypto tokens. Also it is important to choose the right mode for invest in cryptocurrencies, speculating on the most volatile digital currencies and investing in the long-term on the most valid projects with solid growth prospects.
