One thing about the crypto space, it is always full of predictions. Whether this is regarding the next major price movement or the next change in regulation, industry stakeholders are always looking towards the next big thing.
The first decade of its existence saw the industry make massive strides and go from unknown to globally recognised and accepted at certain institutional levels. Now, with millions of token users and more visibility than ever before, it is worth looking to the next decade of the industry. What will the crypto landscape look like by 2033? And what can we do today to create the best future outcome?
Regulation Will Continue to be a Mixed Bag
Crypto regulation has never been the same around the world. While Malta was rushing to become Blockchain Island, China outright banned cryptocurrency. At present, there is controversy regarding US regulators’ alleged targeting of crypto companies while the UK is gunning to become the next great crypto hub.
In the next decade, we are going to see the results of these regulatory attitudes. Some countries will, naturally, become safe havens for the crypto industry while others that are prominent today might lose relevance. Countries like China that have maintained their anti-crypto stance throughout the craze of the 2010s will probably not budge over the next decade and will keep crypto illegal. US regulators, on the other hand, might soften their stance towards the industry as doing otherwise will risk the loss of its financial benefits.
Increased Use of Crypto for Non-Speculative Purposes
Cryptocurrency is perhaps the most widely used speculative asset, but this will likely change in the next decade. First, most of the major countries would have launched their CBDCs, which will reveal a new dimension to their use outside of being an asset. This will also drive overall crypto adoption and visibility.
Increased crypto adoption will also mean that more merchants will accept crypto simply for buying goods and services, which will only help. Certain industries like the gambling industry already use cryptocurrency regularly outside the speculative and this is only going to get bigger. You only need to look at sites like Mega Dice Bitcoin casino to see that there is a big demand for this. And with the gambling industry set to grow even more over the next few years, more people will use crypto for non-trading purposes.
The Industry Will See Several More Crazes
Over the first decade of the crypto industry’s existence, it saw several sub-niches rise and fall. You had the ICO craze in the mid-2010s that raised billions of dollars for both legitimate and fraudulent projects, with some being prosecuted to this day. We also saw the rise of DeFi which unlocked a new way to access financial services through cryptocurrency. There was also GameFi which saw immense overlap with the gaming sector, the rise of NFTs, and much more.
The next decade will be no different and the industry will see more crazes and innovations rise and fall. Some, like DeFi, will endure for years and expand on crypto’s capabilities. Others, like ICOs, will be a complicated footnote in its history that some of us would rather forget. One thing’s for sure though…the crypto space will continue to innovate and will always have something newer to offer.
The Crypto Space Will Expand…or Contract
This is a tricky one as nobody can fully predict the future, but the crypto industry has the potential to become much more mainstream in the next decade. It could also contract and become even more niche than it is now.
On the one hand, cryptocurrency has seen much more institutional adoption in the last few years. From the ETFs that have been launched around the world to the mainstream platforms like Nasdaq and PayPal that offer cryptocurrency, the general public is seeing more of crypto these days and the industry could break more ground in the mainstream.
At the same time, markets are unpredictable and there is always the risk that fatigue could set in. This is especially tricky considering the collapse of major crypto projects in the last year like Terra and the FTX exchange. Market confidence did take a hit and if these sorts of collapses keep happening, everyday crypto users might bow out and leave only the hardcore cryptoheads.
Conclusion
The crypto industry is at a very crucial point in its existence. It has braved the murky waters of the first 10-plus years and has the chance to ascend to new heights. But current regulatory issues, some high-profile project collapses and potential new developments mean that crypto could look very different in the next decade.
It could become the mainstream darling it has always wanted to be, become a niche industry, see more acceptance on the world stage or collapse entirely. Only time will tell.
