Cryptocurrencies have a bright future, and, despite their erratic prices, they might develop into useful payment methods. Bitcoin (bitcoin trading software) and other digital asset have proven useful for trading and transferring money, so they will not be going away soon. Cryptocurrency will eventually die, according to some people, while others think it will always exist.
Some contend that decentralized currencies will soon become obsolete since there will not be any reason to use them in the absence of a centralized authority, such as the government, while others contend that Bitcoin may grow even more resilient with plenty of innovation from developers.
Can cryptocurrency survive forever?
It is difficult to predict how long cryptocurrencies will last. For instance, no one could have predicted that Bitcoin, which Satoshi Nakamoto suggested in 2008 and whose first block was mined on January 3, 2009, would become so well-known today and have a market capitalization of more than USD 1 trillion. But given how frequently their prices change, some individuals believe cryptocurrencies may vanish sooner rather than later.
Reasons why cryptocurrencies will not die
1. Fiat currencies including the USD are gradually weakening
One sign that economies throughout the world are considering cryptocurrencies as more than just a fleeting trend is Putin’s announcement that Russia will stop using the US Dollar for commerce. Cryptocurrencies will swiftly fill that hole once again when governments embrace new currencies to stabilise their own as their currencies decline.
2. Cryptocurrency being acknowledged globally
Some people do not have any knowledge of how cryptocurrencies operate, yet they comprehend them well enough to purchase, hold, or even utilise them in transactions. And then there are those like me who are more knowledgeable on this subject and can instruct others and inform people as much as we do not come off as preachy or patronising in the process.
3. Cryptocurrencies are decentralised
Another factor why cryptocurrency will survive is this. It essentially means creating money from thin air to fictitiously boost the quantity of cash floating about, a practice that frequently results in sharp declines in currency prices. When it comes time for international trade penalties on governments that refuse to play ball with what is deemed acceptable economic policy elsewhere, cryptocurrencies will be considerably less vulnerable than traditional means of payment due to the lack of a central point.
4. Its survival depends on the survival of the internet
Although we cannot predict the innovations and uses of future generations, one thing is certain: people will still need to exchange products and services. Additionally, currency in some form will always be present if a trade happens. Even if it has a different look than what fiat money and conventional banking systems do right now.
What are the criticisms?
The general adoption of Bitcoin has been rather gradual in the roughly ten years since its creation. Some people have begun to question whether cryptocurrencies are suitable for widespread use due to their historical volatility as investments.
Cryptocurrency critics assert that because the worth of cryptocurrencies like Bitcoin is based on what traders are willing to pay at a given moment in time, they may be subject to erratic price movements. Because cryptocurrency values are frequently very sensitive to public opinion, emotion, and publicity, it may be easy for private investors to manipulate the market with little risk of legal repercussions.
In the past, many people have predicted that Bitcoin would eventually fail, but so far, it has defied every single one of them. There is no justification for this to alter currently. There is much evidence that indicates that Crypto is one of the most successful creations of mankind. Many people firmly believe that the fundamental worth of these digital assets would increase over time. It is not going away. Although investors and computer enthusiasts currently show the most interest in this money, there may ultimately be enough backers for it to enter the mainstream.
As a self-professed investor, I view cryptocurrencies as having future development potential and as a method to vary the stocks in my wallet. But I do not anticipate it taking off any time soon. Because there is still a persistent expectation that cryptocurrencies could someday gain widespread acceptance and even completely replace fiat money, I believe that right now we are seeing more of an investment opportunity than anything else.