5 years from now, blockchain and crypto currency is the norm
Blockchain and crypto currency are still relatively new to the mainstream, but they’re already changing the way we do business. For example, many of the top global banks have already built blockchain or crypto currency features into their own financial products and services, helping them become more flexible and efficient than ever before—and just in time, too, since cryptocurrencies are expected to reach mass adoption by 2022 (according to the World Economic Forum). As these and other companies begin building on blockchain and using crypto currency in new ways, here are five ways blockchain and crypto currency will be impacting our everyday lives in five years’ time.
Cryptocurrency – what we know today
The idea of cryptocurrency started with Bitcoin. Created by Satoshi Nakamoto (likely a pseudonym) in 2009. In essence, it is a digital form of money that uses cryptography to secure its transactions. The project was open-sourced in early 2010. There are thousands of cryptocurrencies today – called altcoins – but bitcoin remains by far and away the most popular and valuable. For context: since its inception in 2009, there have been over 150 million transactions using bitcoin, with a total value exceeding $20 billion USD
The Future of Cryptocurrency
It’s 2022. You open your phone to buy groceries using a cryptocurrency that doesn’t exist today. The technology powering it? Blockchain. Cryptocurrency isn’t just a digital version of cash that you can use to buy stuff anonymously—it's digital money with limited supply. That means no centralized authority controls it (like a bank), so its value can fluctuate greatly over time. It also means anyone can create their own cryptocurrency without needing permission (though there are some exceptions). One of my favorite things about blockchain is how closely it's tied to cryptocurrencies; most people aren't able to explain why one exists without mentioning how they're used together.
What are Crypto Currencies?
A crypto currency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. In some contexts, crypto currencies are also referred to as cryptocurrencies. The best known cryptocurrency today is Bitcoin. In 2002 was when Bitcoin was introduced as open source software by an anonymous developer known only by Satoshi Nakamoto. For all intents and purposes that has remained true until today - no one knows who created it or what their true intentions were in creating it.
How Does Blockchain Work?
A good way to understand how blockchain works is to think of it as a shared ledger that companies can use. The ledger records transaction data in blocks. These blocks are then stored and replicated across multiple nodes on a network. There’s no centralized version of information on a blockchain—there’s only one copy of each block (meaning you can’t go back and change history). Additionally, every time someone makes changes or adds to a block, they all have to agree—instead of using human administrators or other intermediaries. For example, say Alice transfers 3 ETH tokens to Bob in exchange for 5 BTC tokens.
Cryptocurrency Market Cap
$280 billion : For comparison’s sake, that figure is well below figures estimated for 2022 (though note: these figures are much more uncertain than 2021 estimates). The Boston Consulting Group predicts that cryptocurrency market capitalization will grow to $20 trillion by 2022. Fundstrat Global Advisors predicts $64 trillion in total value for cryptocurrency market capitalization by 2028. This forecast has been criticized as too bullish even on a long-term basis; however, it’s still a significant number. If Fundstrat’s numbers prove accurate, cryptocurrency would experience roughly 50% annual growth between 2018 and 2022.
0 Comments