The popularity of cryptocurrency started with Bitcoin; the first digital asset ever launched. Since then, this new form of currency has gained the attention of many, with users finding it valuable in many ways. It’s already been a decade since the crypto industry came to fruition, with other digital currencies gaining ground, including Ethereum. During this time, the market experienced many ups and downs, and major events occurred in the industry.
Given the increased interest in cryptocurrency, it is worth looking at where cryptocurrency could be headed in the next ten years. Given that ChatGPT can answer all kinds of questions, it can also be used to make predictions on the future of digital assets. With this in mind, let’s explore this smart chatbot’s forecast for the crypto space in the next decade.
zoltan-tasi-uNXmhzcQjxg-unsplash
Wider mainstream adoption
To begin with, ChatGPT mentioned a wider mainstream adoption of cryptocurrency, with Bitcoin and other altcoins becoming a significant part of the financial network all across the world, to ensure transactions are completed seamlessly. Considering the latest developments on this front, this prediction of the AI language model may be accurate. Two of the largest payment-processing corporations, Mastercard and Visa, have partnered with several crypto enterprises to enable payments in the form of digital assets.
Although the crypto industry experienced substantial setbacks in the previous year, Visa’s crypto head has highlighted the enterprise’s positive attitude on the matter, stating that certain digital currencies can make a difference in the payments field. Mastercard also implemented a program designed to help banks launch platforms for crypto trading.
Increased use of the blockchain
Blockchain has been called a revolutionary technology, and that’s mainly because of its decentralized and tamper-proof nature. It can disrupt traditional models that businesses use, enabling new growth opportunities. According to ChatGPT, blockchain tech will be a large part of the financial system, allowing more network transactions and implementing insurance policies.
But finance is not the only field where blockchain could become more prevalent. As ChatGPT suggests, the technology could also change supply chain management and improve government services and healthcare.
Better regulatory frameworks
As crypto becomes widely adopted, ChatGPT believes global watchdogs will want to pay close attention to the market’s evolution. Regulations have been a hot topic for discussion in the past years, especially after last year’s setbacks, like the collapse of FTX. It is imperative to take action and provide solid regulatory frameworks regarding cryptocurrency; however, even in the United States – which is home to large crypto companies – proper roles are lacking.
Since multiple firms offer unregistered securities, the Securities and Exchange Commission has gone after them, and it is also involved in legal battles against various cryptocurrency companies. On the contrary, Hong Kong, Singapore and the EU are concentrating their efforts on pushing for regulations. As a result, the MiCa legislation has been approved in the European Union and will operate in 2024 for stablecoins and one year later for exchanges.
DeFi Growth
Decentralized finance is perceived as the counterparty of the traditional financial system, which has a centralized nature. In other words, a transaction can’t be completed without the involvement of a third party. DeFi became popular in 2020, although it existed long before that time. Many projects called “DeFi summer” escalated in engagement, prices and total value locked.
But this significant adoption also highlighted major issues in the industry, like the lack of scalability and security problems. Nevertheless, ChatGPT suggests that DeFi will overcome these problems in the years to come, boosting user experience and becoming an important part of the financial sector.
Sustainability
A few years ago, global ESG agencies reported that Bitcoin mining is harmful to the planet in many instances. And this action had a successful outcome, with investors like Musk backing out from their positions and requiring miners to embrace more eco-friendly sources. The Merge, which occurred last year, had the same purpose: to create a blockchain-based on PoS instead of a PoW model.
According to ChatGPT, the crypto market will pay more attention to sustainability in the following years, especially because environmental concerns are only growing. Therefore, the chatbot suggested that many investors prefer greener cryptocurrencies to energy-intensive ones.
New tech advancements
Lastly, the AI chatbot predicts there will be innovations in the tech field. After all, Bitcoin itself is an innovation, and so are all the other projects developed in the following years after its inception. Proof of work, although it has some issues, resulted in the creation of proof of stake and other variations. And until now, blockchain has enabled the development of different protocols with several purposes, including NFTs, DeFi, oracles, and so on.
The next ten years will likely come with new opportunities, bringing more utilization for concepts that no one has ever anticipated. This could occur as a result of society’s changing needs and conditions.
Should crypto enthusiasts rely entirely on ChatGPT’s predictions?
While ChatGPT is a great tool, this doesn’t mean it always provides 100% accurate information. When it comes to cryptocurrencies, it’s hard to tell what will happen in the industry. This is why it’s important to take the information it provides with a grain of salt, especially if you’re using it for price predictions. However, one thing is clear: there is still plenty of room for growth in the crypto sector, and ChatGPT may be right regarding the increased adoption of blockchain and future tech developments.
Despite the high noise about crypto, many still see it as a long-term investment providing people the freedom they want, representing a building block towards a digitalized society. New opportunities may unlock in the future, making the market even more appealing to investors. Although the path toward crypto’s mainstream adoption has been incredibly challenging, there could be a positive change in this sense. If new technologies emerge, that would only lead to further growth and acceptance of cryptocurrencies. But, of course, that only remains to be seen. Regardless of the future of crypto, investors should always approach the industry with caution, given its volatility and all the risks involved in trading.
