BluePay is pleased to bring you this valuable information from our partner, Due, makers of a free digital wallet that allows users to easily make and accept payments online.
With the recent increase in the value of Bitcoin to more than $1,000 after being knocked down for the last few years, eyes are back on cryptocurrency and what may happen to it in the near future. Excitement on a large scale has returned to the world of cryptocurrency even though, behind the scenes, many working within the industry have known all along that it was just a matter of time as more research and study would reveal the real world of opportunity within cryptocurrency to change online payments and other applications. Here are some of the trends to look for this year:
International Demand Will Continue to Build
Interest in cryptocurrency in China has been seen as one of the reasons why the value of Bitcoin has risen once again. Expect this trend to continue in terms of China’s interest as well as other countries, including those areas that lack a developed financial infrastructure and dependence on the traditional institutions that have tended to slow demand in western and developed countries.
Still other countries that do have some developed financial infrastructure are ripe for cryptocurrency growth in 2017, including the Middle East as well as India and Japan. International demand will also increase in 2017 due to cryptocurrency’s potential answer for the cross-border payment challenges that traditional currency and processes have not solved.
Traditional Bank Involvement and Investment Will Grow
Rather than dismissing cryptocurrency or being afraid of it, traditional banks are now making investments into research and development related to cryptocurrency and blockchain applications. Large banks around the world are partnering with cryptocurrency companies as well as exploring how to add blockchain to their own processes, including global remittance and other digital payment methods that they are now offering.
Practical Demonstration of Applications and Benefits Will Appear
Ongoing research into cryptocurrency and blockchain applications will have been that much furthered with new breakthroughs in understanding about what is capable. This includes financial applications like instant microtransactions and trading as well as more non-financial uses for contracts and data storage as well as supply chain management, global trade agreements, and identity verification for border control issues related to undocumented people.
Some money managers and financial advisors have started to recommend adding cryptocurrency to investment portfolios to increase diversity, which will increase in recommendations throughout 2017 as the value rises.
Regulators Will Become More Involved
Even regulators will be more receptive to what is being developed and learned about how cryptocurrencies can assist with various issues. Because of its decentralized nature, regulators will keep a closer eye on what is happening with cryptocurrency to better understand and assess how well it actually works without any central authority to oversee it.
Cryptocurrency Wallets Will Replace Exchanges
With the wider trend of digital wallets growing with traditional currency, there may be greater reliance on cryptocurrency wallets over the cryptocurrency exchanges that have dominated cryptocurrency trading. Previous security breaches and loss in cryptocurrency from exchanges has had more cryptocurrency holders moving to what they perceive to be a safer place to keep their digital currency.
Privacy-Protecting Technologies for Cryptocurrency Will Emerge
To reinforce the strong security associated with cryptocurrency and to reassure those that are not familiar with the process, more privacy-protecting technologies will be developed and implemented. As these are proven to work, momentum will build for cryptocurrency, helping to further its value and encourage wider adoption.
Merger and Acquisition Activity Will Heat Up
The last few years have shown an incredible increase in the number and type of cryptocurrencies available of which not all will survive. Instead, as the cryptocurrency matures and develops like any industry does, it will be ready for mergers and acquisitions where some digital currency companies will see an advantage to acquiring other smaller niche players.
Cryptocurrency Values Will Go Even Higher
Rather than creeping back down after the recent highs that Bitcoin experienced, the trend will be ongoing incremental increases in cryptocurrency value. This prediction is based on the other noticeable trends for cryptocurrency in 2017 listed here, especially as knowledge and formal industry development continues to grow along with trust and interest.
A Turning Point for Cryptocurrency
In looking at these cryptocurrency trends, it would appear that 2017 could be a real turning point for this new form of payment that has shown resiliency, relevance, and potential to solve numerous financial and non-financial issues that have impacted business and individuals related to various types of transactions.