Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Cryptocurrency has gained significant mainstream attention in recent years. Despite dramatic fluctuations in the crypto sector, many experts believe that the unstoppable trends in cryptocurrency point toward a bull market in the future. From increasing adoption by institutions and businesses, to the growing interest and investment from individual users, many signs are indicating a bright future for cryptocurrencies. Let’s take a quick look at some of the key trends that suggest that a bullish cryptocurrency market is on the horizon.
2022 saw several game-changing scandals in the crypto industry. These events have already been covered in great detail (and some are still developing) so I won’t take a deep dive into their details here. Suffice to say, a bunch of real-world crises are testing the current set of rules, regulations, and laws. That sounds like bad news but also lights a fire under the government’s efforts to catch future scandals before it’s too late.
Image source: Getty Images.
Gary Gensler, chair of the Securities and Exchange Commission (SEC), has recently argued that the current rules will be just fine, and that the recent spate of crypto-trading problems only highlights a need for improved enforcement of that rulebook. Others disagree, suggesting that the crypto industry deserves a whole new regulatory framework.
Either way, lawmakers and regulators likely feel the need to clarify the rules and their application before another crypto scandal hits the newswires. 2023 should see some serious steps toward a more robust codification around owning, trading, making payments with, and otherwise using cryptocurrencies.
Cryptocurrency has come a long way from its early days as a largely unknown and untested asset. Today, it’s clear that crypto is being taken seriously by mainstream institutions, with banks and businesses across the globe starting to offer their own crypto products and services.
For example, mega-bank JPMorgan Chase and credit card veteran Visa linked up their cryptocurrency services to form a fast and secure system for international money transfers. Investment banking giant Goldman Sachs is pursuing buyouts of financially troubled crypto companies that need a relatively cheap financial lifeline after the FTX meltdown.
The financial elephants are dancing around the cryptocurrency sector, largely waiting for the clarified regulatory system I mentioned above. This trend toward mainstream adoption is a solid indicator that cryptocurrency is here to stay and is being recognized for its potential as a legitimate asset class. With traditional institutions jumping on board, it’s safe to say that crypto is no longer on the fringes — it’s going mainstream.
As the use of cryptocurrency for everyday transactions and asset management grows, it’s important to keep in mind this emerging asset class is still in its early days. While crypto has made great strides in terms of widespread acceptance and adoption, it still has a long way to go before it becomes a full-fledged alternative to traditional financial instruments.
However, the increasing adoption of crypto for everyday transactions and asset management is a clear indication of its potential. It suggests that it will continue to grow and evolve in the coming years. The list of retailers accepting Bitcoin, Ethereum, and Dogecoin payments grows longer by the day. The idea that Bitcoin someday might take the place of gold as the default long-term repository for monetary assets is starting to sound reasonable. Again, the industry just needs a more buttoned-down regulatory system before this radical concept can go mainstream.
Easy-to-use crypto platforms are attracting a wide range of new investors, app developers, and users, all of whom are drawn to the convenience and accessibility of these platforms. For investors and users, these decentralized finance (DeFi) platforms offer a simple and user-friendly way to buy and sell crypto. For app developers, the same platforms provide a solid foundation for building innovative apps that can take advantage of the capabilities of cryptocurrency.
For instance, a well-designed personal budget app could make use of Bitcoin deposits, Ethereum’s smart contracts, and Dogecoin’s low-cost transactions, all tied together with the Polkadot network’s ability to tap into the best qualities of many different blockchain systems.
The success of these platforms is a clear sign that the demand for user-friendly crypto options is on the rise, and that the ecosystem of crypto-based apps and services is growing and thriving.
Blockchain technology has come a long way in a short period of time, and the potential for this technology is only just beginning to be realized. Ethereum implemented an important platform change in September, paving the way toward even greater processing speed and more flexible smart contracts in future platform versions. Even Dogecoin is moving its Bitcoin-like blockchain network toward a more advanced system of digital wallet services and secure keyrings.
With new breakthroughs in areas such as scalability and security, the capabilities of blockchain are expanding at an impressive rate. These technological advancements are opening up new possibilities for the use of blockchain, and are driving its potential to new heights. As more and more industries and businesses start to adopt blockchain, this technology seems to have staying power. These digital assets should continue to evolve and grow in the coming years.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Anders Bylund has positions in Bitcoin, Ethereum, and Polkadot. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Goldman Sachs Group, JPMorgan Chase, and Visa. The Motley Fool has a disclosure policy.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.
Market data powered by Xignite.
