Predicting the industry trajectory of crypto is always exciting to perform because it is developing as we predict thanks to the fiat financial system. The introduction of certain requirements for the identification of crypto users, the induction of crypto by financial systems like PayPal and others, the growing interest in government digital currency, and the launch of more crypto coins has shown that these digital assets are now becoming acceptable and understandable and more mainstream.
The speed at which we distribute cryptocurrency depends on the speed at which the operations with various brands become available and accepted in the traditional banking system. The mass use of cryptocurrency is what the world strives for and what it fears. It is the attempt to maintain a balance between profit and loss of using cryptocurrency that determines the latest trends in the crypto world. With that said, here are a few trends of cryptocurrency in 2021 according to Bitcoin Code.
Trends that will change the crypto world
Crypto will see tax regulation
One issue that lots of people keep hammering on is the fact that there will be tax regulations for cryptocurrencies in the future. As of today, crypto taxation is not a big deal but it’s close in the reality. Crypto taxes are not yet widespread and while they’re unwelcome to some, they have begun to appear in many countries as those market keep growing and the government sees a revenue-raising potential.
Through the introduction of mandatory user identification through KYC procedures and the development of protocols that allow tracking transactions, and the adoption of legislation on digital assets indicates that things are changing and its changing at a faster rate.
Silent crypto harbours are on the way
The introduction of crypto taxes will increase the attractiveness of jurisdiction that will resist this practice and allow users to legally minimise the costs of owning digital assets. With the introduction of crypto taxes, offshore crypto havens will develop more actively. These crypto havens will most like be implemented by countries where the financial & IT market are fully developed.
The first crypto crisis is coming
The maturing crypto world is not only becoming more transparent, regulated, and secure, but it is also beginning to be subjected to a range of economic challenges and tests. With the steady growth in crypto and the increase in the supply of coins in the financial sector, this can lead to a depreciation of money which increases the cost of goods which in this case is BTC.
Risks assessment models will improve
Against the background of the rise in the value of bitcoin, there is an urgent need for the emergence of a high-quality risk assessment model, since it is increasingly difficult for users to objectively assess the possible result of crypto investments, without succumbing to the general rush. Services that offer a working solution, and not just “digital fortune-telling on the coffee grounds”, will be able to quickly conquer the hearts, minds and wallets of both — beginners and experienced participants in the cryptocurrency market.
The cost of transactions will change
With the way things are going in the financial sector, cryptocurrency transactions will become cheaper due to technology upgrades, or they will continue to rise in price. The change in the cost of operations can affect the interest in cryptocurrency by eCommerce industry players.
The introduction of 5G will change a lot of things
The 5G network is a new paradigm in data transmission, which is still underestimated by many. Its implementation will lead to the emergence of new concepts and types of services and will affect how the mining is built, what DeFi applications will be in development, and more.
With 5G, transaction management capabilities will no longer be limited to network data speed. 5G will help overcome this barrier: all systems will have a level playing field for transactions regardless of where the crypto exchange is located.
What is happening before us is what sceptics believed was not possible until recently when the world of finance became multipolar. Regulators, traditional financial institutions and crypto companies are increasingly collaborating to make the most of the benefits that crypto technology has brought to the world. Although not all important issues have been resolved today, I am sure more answers will become available as crypto continues to evolve.