Will cryptocurrency stay relevant in 2027?

In the past two years, more and more people have started taking an interest in cryptocurrency. The shift of public opinion and cryptocurrency growth was faster. The pandemic has made people’s minds more open towards investing in cryptocurrency, although everyone has their own opinions there is no disagreement that this investment has become the talk of the town. From amateurs to professionals, everybody wanted a piece of it. The rise in cryptocurrencies’ popularity has given birth to a whole new category called meme stocks. 

If you think cryptocurrency is a relatively new concept, then you are in for a huge surprise. They have been around for a long time but only a relatively small group of investors were aware of them. Probably by now, you would have at least read two or more articles on the history related to cryptocurrency. We are not going to bore you with the details that you probably are already aware of. However, in this article, we will discuss whether a cryptocurrency will still stay relevant in the future. Statistics show that the global cryptocurrency market will triple by 2030 at a valuation of $5 million. The users of cryptocurrency are steadily increasing before this recent explosive growth. 

Why the sudden interest? Is it a change in investor mindset or a ploy of social media?

Have you ever wondered why people are taking more interest in cryptocurrency? Or the reasons behind their rapid growth. The most plausible answer would be that the profile of investors has changed. Yes! Investors are evolving, they are always in search of risky but more rewarding assets. This new generation of investors is not afraid of taking risks to build their portfolios with a high-risk-reward ratio. But social media platforms do have a play to it. More and more finance influencers and celebrities have started to talk about cryptocurrencies like Bitcoin. And it is known that social media can influence behaviours. Research has also shown that when people take about their investments in an online setting, they tend to be interested more in riskier assets to invest in. 

Another plausible reason could be “FOMO”. Yes! Irrespective of age and space, in the past two years, cryptocurrency has been an ice-breaker in many conversations. So when more people are talking about their success stories, more people are going to invest in it. From major corporations like Paypal to financial influencers on Instagram every one is getting into bitcoin, it is definitely hard to not fear that they are missing out on something huge. 

Not to forget, although most people believe in regulations, they are still worried about the impact it has. Crypto is providing them with financial freedom compared to traditional banking. For many investors, cryptocurrency has shown them a new way to handle their finances. More than 50% of crypto investors have been using them for online shopping. Although few customers are worried about the drawbacks, most people are interested in the benefits it is offering. Even traditional financial institutions have taken an interest in cryptocurrency because of its benefits. 

What is the situation of cryptocurrency in 2022?

Although the beginning has been humble, the corporates have taken a likely to the growing popularity of cryptocurrency. Before this rapid popularity, individual investors and miners spent hours mining bitcoins. However, if you take a look at the current situation, you can see that a lot of companies are involved in the mining of cryptocurrencies like Bitcoin. A single investment by Tesla has marked up the price of bitcoin by 20%. All these details make us question whether the market is as democratic as it was before. Not to forget although cryptocurrency has been popularized across the world as a decentralized financial asset, many countries across the globe are taking an interest in cryptocurrency and legalizing it. It is not long away that people will see regulations around the decentralized asset too. People do have varied opinions on the regulations regarding cryptocurrency. Crypto has always been volatile both in user perception and price. This is why the future of cryptocurrency is unclear.

What does the future hold for cryptocurrencies?

One of the assets that always gives you a good indication regarding the crypto market is Bitcoin. Bitcoin has the largest market cap and the rest of the cryptocurrencies follow its lead. The surging inflation, recession fears, shaky stock market, and high-interest rates have proved to be dangerous for the cryptocurrency market. Since last November Bitcoin has lost more than two-thirds of its value. The volatility of the cryptocurrencies is one of the main reasons that experts suggest investors in maintaining their crypto assets to be less than 5% in their portfolio. Apart from Bitcoin, there are many other cryptocurrencies, so we can decide the future of cryptocurrencies solely based on the future of Bitcoin.

The volatility, and regulations have a considerable impact on the cryptocurrency making it hard for investors to navigate. Although we have not expected the crypto market to shape itself into its current situation. We can also not predict the future. So if we can say something in the future the only thing we can say is that the cryptocurrency market will be unrecognizable even after five years. One thing we can say is that the future of the crypto market will be influenced by major corporations and regulations. 

Many major corporations are offering crypto in their products. This is helping the investors to dip their toes in cryptocurrency in a space they are comfortable with. Fintech companies and finance brands are acting as a bridge between users and the crypto market. Whatever the future holds for cryptocurrency, there is a lot of work that needs to be done to balance the risks and rewards of cryptocurrencies. Simply put, cryptocurrencies may still be relevant in 2027, but we may not yet guess their impact, or influence as an investment.

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