The blockchain industry is one of the most fast-paced, making it highly vulnerable to change and upheaval. For example, between 2018 and 2020, the industry grew from $1.2 billion to $3 billion in three years. According to projections, the market may reach a value of $7 billion next year.
It might be impossible to predict how blockchain technology and the market as a whole will evolve. Therefore, we’ve compiled a list of five forthcoming blockchain events to keep an eye on.
Top Companies Will Start Utilizing Crypto
When PayPal revealed in October 2020 that it would enable the buying and trade of cryptocurrencies, including Bitcoin, it created quite a stir on its platform. Additionally, the service would allow customers to pay for their cryptos by translating the needed purchase amount into the native fiat currency. This implies that the merchant does not need to keep the cryptos; instead, they will get regular currency. The price of Bitcoin rose considerably due to PayPal’s action, kicking off a rally that saw the flagship cryptocurrency achieve an all-time high on November 30th before dropping back beneath that level.
Many other corporations, like JP Morgan Chase and IBM, have begun to use cryptocurrencies. Still, PayPal has taken the most significant step ahead by allowing its user base of over 346 million individuals to use cryptocurrencies. Together with the rising value of Bitcoin, this decision should create a precedent for other firms to adopt cryptocurrency.
Defi Will Continue to Grow
Decentralized Finance (DeFi) has exploded in popularity this year, with many proponents believing it can “defeat the banks.” Even if the technology does not live up to the hype, the technical and user advantages are worthwhile to examine. DeFi is a type of finance that does not need middlemen such as banks or exchanges, and agreements are enforced using smart contracts.
The popularity of DeFi has been boosted by its use cases, which include democratizing the loan process to level the playing field between lenders and lendees. DeFi lending, for instance, eliminates the need for credit checks, allowing more individuals to obtain financing. Thus, allowing lenders to make better returns due to transparent dealings and lack of a third party. DeFi has also spawned decentralized exchanges like Uniswap, which are trustless platforms that allow users to transfer assets without the need for a third party since both will be operating on a shared ledger.
DeFi showed growth rates of half a billion dollars per week last year, which is a tremendous achievement to the growth potential of the concept. It is not a surprise to see the continuing growth, which is projected to continue well into 2022
The rise in Crypto Casinos
Since casinos gain significantly from offering cryptocurrency services, such as payment and payout in cryptos, the development of so-called “Crypto Casinos” has occurred recently. This is because it introduces the casinos to a whole new group of people who are more inclined to play their games and utilize their services.
Furthermore, the usage of cryptocurrencies in online gaming platforms would benefit players since the improved security of crypto wallets ensures that all transactions are secure. Transactions that would typically take days to complete may now be completed in under 15 minutes.
Customers’ existing payment methods are not good enough for online casinos, which is one reason for their fall in popularity. Because cryptocurrencies can help to remedy this, casinos have started to become increasingly reliant on them.
Significant increase in Crypto ATM’s
Cryptocurrency ATMs, which enable consumers to withdraw cash using their cryptocurrencies and accept cryptocurrency deposits, have begun to appear in large numbers worldwide.
According to research published, the United States is the country most equipped for broad usage of cryptocurrencies, with vital accessibility to and interest in digital currencies in the world’s largest economy. Crypto Head, a website dedicated to cryptocurrency education, looked at the number of crypto ATMs in each nation, the ability to utilize cryptocurrencies in banks, and the number of internet searches regarding cryptocurrencies. The United States was rated first out of 76 countries, with a total score of 7.13 out of ten.
When it came to crypto ATMs, the survey discovered that the United States had 17,436 of them, vastly outnumbering Canada, which had 1,464. With one for every 19,023 individuals, the United States has the most crypto ATMs per capita. There were 200 crypto ATMs in the UK, with one for every 333,984 people. Between May 2020 and April 2021, there were 14,796 Google searches for cryptocurrency per 100,000 individuals, up 140 per cent from the same time the prior year.
Significant Steps to Regulate Crypto
Regulation of cryptocurrencies and other kinds of tokens has always lagged behind the times, owing to the lengthy legislative processes in many countries and the fast growth of technology and funding methods in the industry. In terms of legislation, lawmakers have compared the crypto market to the “Wild West,” and it doesn’t appear that it will be long until regulation is more suited for the purpose.
The European Union intends to pass complete cryptocurrency laws by 2024. The US is believed to be considering new cryptocurrency wallet restrictions that would reduce the AML threshold from $3,000 to a meagre of $250. This is for transactions taking place outside of the United States or coming into the United States from another nation.
Even in Russia, the government has suggested that cryptocurrency wallets that transfer more than 600,000 Rubles per year must submit transactions and balance information to tax authorities and that offenders of the new rules face heavy fines. This indicates that crypto regulation has taken significant steps in 2021, either to the sector’s advantage or otherwise.
