We expect in 10 years, Bitcoin will become mainstream and have a remarkably different reputation,” he said. The mainstreaming of Bitcoin (or, for that matter, an increase in its attractiveness as an asset class) as a payment mechanism will not occur without technological improvements in its ecosystem...
What Does the Future Hold for Cryptocurrency?
Cryptocurrency has become a global phenomenon in recent years, although much is still to be learned about this evolving technology. Many concerns and worries are swirling around technology and its capacity to disrupt traditional financial systems.
As a former commissioner of the Securities and Exchange Commission and expert on financial systems, Professor Grundfest is in a unique position to comment on the future of cryptocurrency.
As a former commissioner of the Securities and Exchange Commission and expert on financial systems, Professor Grundfest is in a unique position to comment on the future of cryptocurrency.
Bitcoin’s wild gyrations in 2021-23 have made sure of one thing: The future of money will be electronic, but it won’t remotely resemble a cyberpunk utopia. People’s power will bow to sovereigns’ might.
The mania and panic that have gripped decentralized cryptocurrencies are heightening the attraction of their coming rivals: digital cash, issued by central banks. These tokens will be staid, centralized, and state-controlled. That’s exactly what users will want in an Internet of Things world where machines need to settle claims with one another all the time, instantaneously, but without contributing to global warming.
Official electronic coins will be a new type of central bank liability alongside physical cash, though, for investors betting on the future value of the dollar, yen, or euro, they won’t be a novel asset class.
This approach, known as proof-of-stake, will require a fraction of the energy proof-of-work needs. Ethereum intends to switch. The cryptocurrency Ether will replace hardware and electricity as the investment needed to secure the network. Validators will earn fees by locking up at least 32 Ethers. (That’s a $72,000 commitment as I write.) If they misbehave, go offline, or fail to do their job, the processors can lose their collateral.
Cryptocurrency’s future outlook is still very much in question. Proponents see limitless potential, while critics see nothing but risk. Professor Grundfest remains a skeptic, but he does concede that there are certain applications where cryptocurrency is a viable solution.
Conclusion - The future of cryptocurrency is uncertain and it is difficult to predict exactly what will happen. However, there are several factors that could potentially shape the future of cryptocurrency. These include wider adoption by mainstream consumers and businesses, increased regulation and security measures, and the development of new technology and applications. Some experts believe that cryptocurrencies could become widely used for transactions and as a store of value, while others see them as a speculative investment or a passing trend. Ultimately, the future of cryptocurrency will be determined by a combination of factors and how they play out over time.
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