The history of digital assets and cryptocurrency is fascinating. David Chaum, an American cryptographer, was the first person to invent digital cash back in the 1980s, but it wasn’t until 2008 when Satoshi Nakamoto released his Bitcoin white paper that the space really started to gain momentum.
That was the beginning of the cryptocurrency boom as we know it today, but what does the future look like? Here are three predictions that could shape the future of Bitcoin.
Continued regulation of Bitcoin
There is currently no international cooperation or regulation surrounding cryptocurrencies, however, the growing popularity of Bitcoin is causing more and more governments to take notice and start regulation this digital asset.
Recent events like California’s Executive Order on Cryptocurrency and Biden’s Executive Order demonstrate that additional scrutiny to the sector and industry is happening, which will not only increase the level of trust but should also help with the public adoption of DeFi.
If regulation continues, Bitcoin could further be adopted as a currency alternative all around the world.
More institutional investors
The viability of Bitcoin will also continue to increase with more institutional investors flocking to the space. While in the past Bitcoin and other cryptocurrencies have mostly attracted retail investors, institutional investors such as pension funds, endowments, and foundations are slowly starting to hold Bitcoin as an asset.
If this adoption continues and more and more institutional investors diversify their portfolio, confidence in the digital asset space will strengthen and lead to further investments to support the industry.
Bitcoin as a payment method rather than an asset
Cryptocurrency is already accepted as a method of payment in a variety of settings, and industry participants are optimistic that it will be used even more in the coming years. Recently, online payment companies such as Square and PayPal have begun to accept Bitcoin payments on their platforms, and interest from others is growing.
Some major banking organizations like Citi believe that Bitcoin could be the currency of choice for international trade. For this to happen, major financial institutions like Citi will have to continue to embrace Bitcoin, which would be transformational for its future.
Here at Mawson Infrastructure Group, we aim to bridge the gap between the rapidly emerging Digital Asset Industry and Traditional Capital Markets. We encourage you to get in touch with us for more information about our digital mining, infrastructure and hosting, and digital asset management services.