6 Reasons Why Cryptocurrencies will Go Mainstream in the Upcoming YearCryptocurrencies went viral just as the populist, anti-authoritarian view saw Trump elected and Brexit voted for. Perhaps we should not have been surprised after all. But is it a fad? Will it be like the Arab Spring, and fizzle?
Five years ago, cryptocurrency was only known by tech geeks and cyberpunks. Little wonder when trading exploded the Exchanges cannot cope – their infrastructure was not built for this level of demand. The demand which even sees accounts on sale on eBay because it takes so long for an Exchange to open a new account!
Even at the height of the dot-com boom, when my book, Trading Online, was outselling Harry Potter on Amazon for a while, have we not seen this kind of craziness.
The naysayers sound just like those who told me in 2000 that Amazon, Apple and other tech companies were a bubble. Some wait for bubbles in their own echo chambers.
Cryptocurrency and in particular blockchain came to protect the most critical mania in our lives – which are records in a database. Think about it: our bank accounts, cars, lands, names, rights, marriages and court cases – all of these are documentation in some database. Right now, we have an authority looking after this database. “But can we trust this authority?” The answer to this question is creating the trend in the decentralized world.
So what will make it go truly mainstream in the next 12 months?
Entrepreneurs Role in making Cryptocurrencies Mainstream
Cryptocurrency hype attracted a lot of entrepreneurs interested in disrupting large industries using the blockchain technology. They are disturbing important sectors with blockchain start-ups. For example; “Sia” is looking to upset companies like “Amazon (AWS)” and “Dropbox.” Level 39, the Fintech hub in London is awash with blockchain companies, as is Cocoon the incubator, with companies such as World Wide Generation looking using blockchain to help achieve the United Nations Millennium Goals.
Ease of Buying and Selling & CFDs, Spreadbets
As brokers such as 24option make it ever easier to almost immediately open an account and start buying and selling crypto CFDs, so you will see an exponential rise in the mainstream interest. Spreadbetting and CFD trading are already mainstream. Indeed, in the UK it was over a decade ago that CFD and spread betting trading accounted for more private investor trading than that in the underlying shares on which the trades are based.
So too with cryptos. In 2018, it will be easier to trade these quickly, instantly, from opening accounts to the simplicity of buying and selling thanks to brokers such as 24option which is much easier to trade through that slow, clunky exchanges.
Tokens are Spendable in the Real World
A company like “TenX” is solving the biggest problem in the cryptocurrency world which is spending tokens in the real world. Tenx has a mobile app that serves as a wallet and a decentralized fee free exchange. Tenx took it further and added a debit/credit card functionality to let anyone withdraw and spend their currency as if it were a fiat currency.
Bitcoin Futures & ETFs
As a futures trader in commodities, a market developed over 100 years ago, I am well aware that the futures market is the tail that wags the dog. It is the future market which does more volume than the underlying asset. As brokers offer CFDs, spread bets and traditional exchanges offer Bitcoin futures contracts, the volume will spiral. Just wait. History repeats itself. And when index trackers (Exchange Traded Funds) are finally approved the volume of money thanks to accessibility and long-term passive investors will be a financial avalanche. You will be investing in Cryptos via your pension fund managers selections without even knowing it, just as today you do not realize you own a bit of Amazon in your pension. Bitcoin and other cryptos ETF’s will also be a major increase in volume and the public interest.
Small Businesses are Adopting Cryptocurrencies
Blockchain favors both start-ups and small businesses, not just the big players. Blockchain has eliminated the need for insurers and lawyers for business registration, thus empowering start-ups to compete with massive companies. SMEs are also set to benefit. Considering the level at which blockchain has developed and continued to grow, other businesses will soon start exploring it.
Blockchain ICO and Fundraising
Blockchain Credit cards are becoming more common. Banks are utilizing the technology, and more ICO funding mechanism are appearing strong as ever. The good news about ICOs is that most governments do not regulate them. The increasing number of fundraising mechanism is creating a new financial subculture. This exciting process will revolutionize the finance world.
Blockchain will explode into other industries
Blockchain will go beyond the finance industry and expand into the supply chain management and other sectors. For example, cryptoBnb has an app that matches homeowners with temporary tenants using big data and artificial intelligence. Boggie Shack music group is preparing to launch cryptocurrencies for music artists. Also, many traders are beginning to set up Bitcoin trading accounts.
Although cryptocurrency may not directly affect your business, it is a sharp depiction of what the future hold for the digital trends. Even if changes are not dramatic as believed, it is best to prepare for the potential that cryptocurrency hold. Don’t let the possibility of cryptocurrency take you by surprise as digital currencies go mainstream.
This article was written by Alpesh Patel, a hedge fund manager and Author of Trading Online (Financial Times). He is partner to 24option who offer CFD trading on Cryptocurrencies.