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The future of cryptocurrency

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Lunatic fringe or serious business?
I do think cryptocurrency is here to stay. To suggest otherwise would be like saying the Internet was a fad when it first started. Of course, hindsight is a great thing.
Which cryptos are here to stay, however, is almost impossible to guess.
These digital currencies have been said to be able to capture the world of online finance. With the blockchain technology behind it, the future of cryptocurrency is showing enormous potential.
Although the mechanism behind Ether prevents it from being used as a direct payment method, this cryptocurrency seems to have a bright future ahead. This is all thanks to its smart contract concepts.
On the other hand, cryptocurrencies solving the problem of privacy are starting to gain more prominent favour amongst users.
The growing level of acceptance of Bitcoin is clearly bringing this alternative currency to the mainstream. Some companies are genuinely considering investing in this currency, further fuelling its journey to the world of financial currency.
Consider this:
Ten times more money was raised for ICOs than Venture Capital in 2017.
More than 50 Funds concentrating on cryptocurrencies have sprung up.
All major VS are now on board and investing before ICOs.
Countries such as Japan have even formally accepted it as a currency.

However, we need to differentiate between cryptocurrencies and the blockchain. Cryptocurrencies have entered a speculation phase where people want to make 1000% within days of buying a coin. But that means we are departing from the fundamental assumption of what a cryptocurrency originally is – a scarce digital commodity where the value derives from that scarcity.
Simply put, if more than 100 new sources of this digital commodity have been launched since the summer of 2017, then the entire concept of scarcity, and therefore value, begins to erode. In fact, many of these new cryptocurrencies will need to fail in order to maintain the viability of the best-known currencies, Bitcoin and Ether.
Most of the recent ICOs are based on the ERC-20 Ethereum token, and the primary purchasing mechanism for new cryptocurrencies has been Ether, the currency of the Ethereum network.
Therefore, an investor often needs to buy Ether in order to buy into any of the new ICOs.
But the crypto bubble of lesser-known currencies will have to pop at some stage, and some people are going to get burned. Despite this, the core technology behind it all – the blockchain – will provide value as a hidden infrastructure underlying future applications.
A small number of currencies – likely Bitcoin and Ethereum – and utility tokens where genuine value is created, will remain viable over the long term – although at what price no one knows.
It is interesting to note that the Enterprise Ethereum Alliance is gaining traction. The Enterprise Ethereum Alliance (EEA), the world’s largest open-source blockchain initiative, is an industry-supported consortium that aims to bring Ethereum to an enterprise-grade level by supporting, promoting, and building Ethereum-based technologies. The Alliance has recently announced the addition of 48 new members, including Sberbank, Russia’s largest bank, and Hewlett Packard Enterprise (HPE).

Governments are going to be embracing the power of the blockchain. Microsoft Opens Blockchain Door to the government. Companies like Microsoft are working with government organisations: “Blockchain makes it much harder for fraud and waste to exist, makes it much more visible if it does exist and potentially gets rid of a lot of layers of bureaucracy that are designed simply to ensure that waste and fraud [don’t] exist.” Microsoft
Are we going to witness a new norm of currency through cryptocurrency one day? Researchers concluded that it is still too early to predict that it would, but one thing is for sure that this currency is slowly making its way in the world.
The most targeted group of all would be the technologically savvy individuals and most of us are already part of this group. Less than 50% of our time is spent online and this % is growing.
One day, we might even consider using cryptocurrency as our standard currency for a more universal transaction.

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