Making long-term predictions is notoriously difficult, but they are good thought experiments. A year is too short a time for fundamental changes. However, five years is enough for everything to change completely. So what will happen to Bitcoin and altcoins in the next 5 years? What shape will the cryptocurrency market take?
What awaits Bitcoin and altcoins in the future?
It explored the most unexpected and outrageous events that analysts expect to happen in the next five years. Some relate to the Metaverse, others to Bitcoin and altcoins. we too cryptocoin.com In this article, we have compiled 5 predictions made by analysts through their research.
Metaverse won’t rise
Metaverse is a hot topic. But most people don’t have the slightest idea what it actually contains. Metaverse is a constantly existing virtual world, running in real time, hosting any number of users, having its own economy, created by the participants themselves. This virtual world is a holistic digital universe characterized by the principle of interoperability. It hosts various applications such as games, video conferencing applications, services for issuing driver’s licenses. However, other real-world themes can, in theory, be integrated into this field. However, Metaverse will never be able to meet every need. There is no reason to include some services in this field. Said services will remain isolated due to the reluctance of their operators to relinquish control over them.
In addition, the Metaverse has a technical aspect to consider. The cyberpunk culture of the 1980s and ’90s assumed that the Metaverse meant all engagement. Such participation is now perceived as only possible with the use of virtual reality glasses. VR hardware is getting better every year, but it’s not what we expected. Accordingly, VR remains a niche phenomenon, even among gamers. The vast majority of ordinary people would never wear such glasses to call their grandmother or sell cryptocurrencies on an exchange. Real engagement requires a technological breakthrough like smart contact lenses or Neuralink. It seems unlikely that these technologies will be widely used five years from now.
Wallets will become ‘super apps’
An active user of decentralized finance (DeFi) has to deal with dozens of protocols these days. There are hundreds of projects such as wallets, interfaces, exchanges, bridges, loan protocols. In addition, the number of these projects continues to grow day by day. Having to live with such a set of technologies is inconvenient even for advanced users. As for the prospects for mass adoption, such a situation is even more unacceptable. The casual user wants the maximum number of services to be accessible through a limited number of universal apps.
The optimal choice is when they are integrated into their wallet. All operations such as storage, exchange, transfer to other networks, staking can be performed using a single interface. I mean, why visit dozens of different sites to access such services? It seems that users don’t care which exchange or bridge they use. They only care about security, speed and low gas fees. Therefore, a significant number of DeFi protocols will eventually evolve into backends that cater to popular wallets and interfaces. As a result, crypto wallets will gain features that allow you to perform many transactions on a single platform.
Bitcoin will be a currency like the dollar
Money has three main roles. These; to act as a means of payment, a store of value, and a unit of account. Many cryptocurrencies, especially stablecoins, are used as a means of payment. Bitcoin (BTC) serves as a store of value among cryptocurrencies. But the US dollar remains the main unit of account in the world. Everything is valued in dollars, including bitcoin. The real victory for BTC will come when cryptocurrencies take on the role of a unit of account. Bitcoin is currently a prime candidate for this role. Such a victory would mean a major mental shift.
There are some things needed to make this possible. A sharp decline in confidence in the dollar and euro is a prerequisite for cryptocurrencies to take on the role of a basic unit of account. Western authorities are printing trillions of dollars in fiat currency. Thus, it puts the reserves of hundreds of billions of sovereign countries in a tight spot, allowing for abnormally high inflation. Therefore, they are already doing a lot to undermine said trust. Further crises in the global economy have the potential to pave the way for BTC to become the main currency.
At least half of the top 50 altcoins will crash
The list of top cryptocurrencies is likely to change radically. Zombie altcoins like Ethereum Classic (ETC) will be off the list. In addition, some projects that currently seem to hold unshakable positions will not only fall, but also disappear altogether. However, some stablecoins will definitely sink. New ones will take their place. Cardano (ADA) is officially a living corpse. Therefore, it will slide down the list. The project is painfully slow. Not only are the developers failing to see this as problematic. They see this as a benefit.
The crypto market will fragment along geographic lines
Cryptocurrencies are global by default. But they are not vulnerable to the influence of individual states. The state always has an advantage and an extra gimmick. cryptocoin.com As we have stated; Regions such as the US, European Union, China, India, and Russia have or are threatening to impose strict regulations on cryptocurrencies. It is not hard to imagine a future where the crypto market will work in favor of others while it shuts down in some countries. We already live in such a future, at least to some extent.
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