In 2027, how will the cryptocurrency market look
It’s the year 2027. It’s a period of enormous scientific growth and creativity, but it’s also a period of unrest. In 2027, how will the cryptocurrency market look? (For those who don’t know, that is a quote from the video game Deus Ex: Human Revolution from 2011.)Cryptocurrencies, Digital Dollars, and the Future of Money
Even though making long-term predictions is notoriously challenging, it makes for interesting thinking experiments. Five years is the perfect time for everything to change, whereas more than one year is needed for significant changes.
The most unlikely and ridiculous things that could occur over the next five years are listed here.
The metaverse won’t expand.
Although the metaverse is a big topic, most people have yet to learn what it entails. The metaverse is a comprehensive virtual environment developed by its users and features unheard-of interoperability. It operates in real-time, supports any number of users, has its economy, and never pauses or resets. In theory, a wide range of programs, such as games, video conferencing tools, services for granting driver’s licenses, or anything else, might be integrated into the metaverse.
It is evident from this definition that the metaverse is not a particularly new phenomenon. Most of the characteristics above are present in games and social networks, which have been around for a while. Interoperability is undoubtedly a challenge that requires considerable attention. The ability to quickly move digital items across games or a digital identity without being bound to a particular platform would have been a very helpful feature.
However, no need can ever be fully satisfied by the metaverse. Some services shouldn’t even be included in the metaverse. Due to their operators’ reluctance to give up control of them, some services will continue to be isolated.
Additionally, there is a technical consideration to make. According to the cyberpunk movement of the 1980s and 1990s, the metaverse implied complete absorption. Virtual reality glasses are currently the only way to achieve this level of immersion. Every year, V.R. gear improves, but we anticipated something else. Even among die-hard gamers, V.R. is still a niche phenomenon. Most regular folks will never don these spectacles to contact their grandmother or sell some cryptocurrency on an exchange.
Technological advances like smart contact lenses or Neuralink are necessary for true immersion. Five years from now, it is quite improbable that those technologies will be extensively employed.
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“Super applications” will replace wallets.
These days, in decentralized finance (Defi), the user must contend with dozens of protocols. There are hundreds of them, and the number of interfaces, exchanges, bridges, and lending protocols constantly increases. Even for experienced users, having to live with various technologies is annoying. An unfavorable situation is made worse by the likelihood of broad adoption. Cryptocurrencies, Digital Dollars, and the Future of Money
It is preferable for the average user when most services are accessible through the fewest possible universal applications. The best option is when they are already included in their wallet. Why go to numerous websites to get services like storing, exchanging, transferring to other networks, and staking when everything can be done through a single interface?
Which exchange or bridge they utilize is irrelevant to the users. They care about timeliness, security, and affordable prices. Many Defi protocols will eventually evolve into back-ends that support well-known wallets and interfaces.
Money has three basic functions: a store of value, a means of exchange, and a unit of account. Bitcoin will eventually become a unit of account on par with the U.S. dollar or the euro. Most stablecoins, which make up many cryptocurrencies, are used for payment. Ether ETH $1,263 and, to a far lesser extent, Bitcoin BTC $16,947
Cryptocurrencies employ them as value-storing units. But the world’s primary unit of the account continues to be the U.S. dollar. Bitcoin is valued in dollars, just like everything else.
The adoption of cryptocurrencies as a unit of account will mark the true triumph of sound money. Right now, Bitcoin is the leading contender for this position. Such a triumph will mean a profound change in perspective.
What must occur during the next five years for this to be possible
For cryptocurrencies to serve as a primary unit of account, there must be a significant decline in trust in the U.S. dollar and the euro. By printing trillions of dollars in fiat currency, allowing unusually high inflation to rise, freezing hundreds of billions of a sovereign country’s reserves, and other actions, Western authorities have already done a lot to weaken this confidence. This could only be the beginning.
What if inflation worsens considerably more than expected? What if the financial crisis lasts for a long time? What if a fresh outbreak starts? What happens if the war in Ukraine spreads to nearby nations? These are all eventualities that could happen. Of course, some are absurd, but they are all conceivable.
The ranking of at least half of the top 50 cryptocurrencies will deteriorate.
The likelihood of a significant shift in the top cryptocurrencies ranking is considerable. The list will be cleared of obvious zombies like Ethereum Classic ETC $20.59, and projects that currently appear to be in unassailable positions may not only be dethroned but also completely disappear.
Undoubtedly, certain stablecoins will decline. They will be replaced with fresh ones. $0.343 ADA Cardano
Will drop to the bottom of the list and become a living corpse. The undertaking is progressing excruciatingly slowly. Developers don’t ignore this as an issue; they even appear to perceive a benefit in it.
The cryptocurrency market will split based on location.
Although cryptocurrencies are, by nature, international, they are not immune to the influence of other states. The state always has a competitive advantage and a secret weapon. Numerous nations, including the United States, the European Union, China, India, Russia, and others, have already enacted or are threatening to enact tight regulation of cryptocurrencies.
Internal state motivations are combined with the influence of global competition. Some cryptocurrency projects started limiting Russian consumers’ access to their services or even freezing their funds when Russia was subjected to severe sanctions. In the future, this scenario might recur concerning China.