Crypto is still a new phenomenon, and many people don’t understand it. This lack of understanding generates countless myths about the industry that are often taken as facts by those who have limited knowledge. Here are some juicy cryptocurrencies predictions for 2021 and beyond to shed light on what is probably going to happen in this space during these next few years:
#1 Privacy Coins Will Be More Popular Than Ever
The privacy coin market is currently flooded with different projects. Some of them are just copycats, while others have interesting ideas about implementation. Monero, the most popular privacy coin in the industry, currently has over $1 billion in market capitalization. Its low transaction fees and fungibility make it a great cryptocurrency for real-life purchases to be used at the retail level.
Privacy coins are here to stay; they will get more popular over time as governments produce stricter regulations against cryptocurrencies that do not allow financial institutions to obtain customer information when needed.
#2 The Massive HODL Movement Is Officially Dead
Let’s face it: holding your crypto portfolio for months on end, hoping for it to increase in value, is not a good investment strategy. The crypto market moves too fast, and you could miss out on serious gains by holding for so long. What you should know is that the HODL movement was born because investors in 2013 were generally new to the game, and they did not know much about trading techniques or different strategies to take in order to maximize profits, but times have changed since then.
Also, bear in mind that you can earn serious profits by simply buying low and selling high, sometimes 20% per trade. Beginners do not know how to do it properly since they are often too afraid of losing their investment. Crypto trading takes time to master, so you should consider learning more about it before setting your portfolio free on the digital wild world.
#3 Institutional Investors Are Ready To Enter The Crypto Space
The number of institutional investors ready to jump into the cryptocurrency space is impressive; Goldman Sachs has already created its cryptocurrency custodian service, BlackRock has established a team to explore cryptocurrencies, Fidelity invested in cryptocurrency exchange Coinbase. Institutions will play an important role in the year 2021 and beyond. Blockquarry can help you with your next blockchain project.
#4 Privacy-Focused Coins Will Have A Bright Future
Governments want to know what happens inside their citizens’ bank accounts, which is a valid concern for them as they need to fight against money laundering, tax evasion, and terrorism funding. However, there are also legitimate reasons why people want more privacy online – from political opinions to sexual orientation or simply wanting to keep personal information about themselves away from the public eye.
As a result, mainstream cryptocurrencies will have to do something about this to increase adoption rates. This push toward increased anonymity could give some random projects created with privacy in mind an edge over other currencies that don’t prioritize anonymity.
#5 Big Companies Will Continue To Work With Crypto Projects
We have already seen examples of big companies working with blockchain projects and accepting cryptocurrencies as a form of payment: Microsoft, Overstock.com. This will continue growing in the upcoming years, and we will see more and more corporations getting ready to make the switch.
They want their products or services to be bought with all types of currencies because this helps them increase their customer base. For example, Starbucks is known for increasing its number of customers; what if people could pay for their coffee using Bitcoin directly from their smartphones? That would be an interesting marketing move that other companies might follow suit with.
#6 Securities Coins Will Be Used By The Masses – Eventually
The idea of having securities traded as tokens on blockchain makes sense. The whole idea behind creating a security token is to make the process much simpler and more secure for both investors and companies. Security coins are not meant to replace traditional forms of trading, but they could nevertheless create some very interesting use cases in different industries. One example would be the management of pre-IPO shares; instead of waiting until an IPO occurs, why not trade those shares right away?
In conclusion, cryptocurrencies are not going anywhere anytime soon. They will become much more prevalent in the future, with both companies and individuals using them for various purposes.