Since their birth more than eleven years ago, cryptocurrencies and the Blockchain technology that powers them have revolutionized the world. Generating totally new capacities in all sectors, from finance to education. However, when humanity goes through a crisis of the magnitude of the Coronavirus, we must ask ourselves what will be the future of cryptocurrencies in the world.
Eleven years of progress and setbacks
The eleven years since the launch of the Bitcoin White Paper in 2008 by Satoshi Nakamoto have not been linear for cryptocurrencies. In fact, neither cryptoactive nor Blockchain technology enjoyed great notoriety until 2017.
In this year, the crypto market experienced the biggest bullish rally in its history, just after Bitcoin’s second Halving. The price of BTC reaching around $ 20,000 per token. And placing Blockchain technology on the front page in all media worldwide.
Since then, the price of Bitcoin, and that of other cryptocurrencies in the world, have suffered constant rises and falls. Not managing to anchor in a stable value, but rather rising and falling in its price according to the vagaries of the market. Which is why cryptocurrencies have earned a reputation for being extremely volatile assets.
On the other hand, cryptocurrencies in the world have also fueled a revolution in the international economy, especially thanks to two advances.
Blockchains-based smart contracts such as Ethereum and Tron come first. Which are virtual contracts, of automatic execution, and protected by the blockchain, that reduce the costs of concluding agreements between companies around the world.
And second, the streamlining of international finance. Thanks to the work of cryptocurrencies like XRP, which have managed to reduce the execution times of cross-border transactions, from several days to just seconds.
The future of cryptocurrencies in the world
With this record behind them, it is fair that we ask ourselves what will be the future of cryptocurrencies in the world. Above all, at a time when Bitcoin has seen its quality as an asset value reserve questioned. And when the Coronavirus crisis has wreaked havoc on investor confidence in virtually every market.
Faced with this unknown, different analysts around the world have divergent opinions. Thus, for example, the commercial director of Bit2Me, Javier Pastor, believes that Bitcoin: “It is better than gold as a refuge for capital when there is a crisis (…) My projection is that in 2021 bitcoin will reach (be worth) more than US $ 100,000.”
An opinion that is very close to that of the billionaire investor, Tim Draper. Who in a recent interview stated that Bitcoin has the “Ability to transform the world’s largest industries.” Later adding on Twitter, that when the Coronavirus crisis passes, it will be Bitcoin, and not traditional institutions, that will save the day.
“Entertain yourselves for a while while you hold on. When the world returns, it will be Bitcoin, not banks and governments, that will save the day. ”
Furthermore, these analyzes do not convince all market analysts. One of the biggest critics of cryptocurrencies in the world, Peter Schiff, considers Bitcoin a classic bubble. “They have no intrinsic value. Unlike government-issued coins, they aren’t even valid for paying taxes. ”
An opinion that would be supported by the award-winning economist Joseph Stiglitz. For whom cryptocurrencies would not only be a financial bubble without a social function, but have gone so far as to ask for their ban. Showing the diversity of opinions that exist when it comes to the future of cryptocurrencies in the world.