The Future of Cryptocurrency [Things to Know]

Cryptocurrency is a digital currency based on blockchain technology and secured by encryption algorithms. This currency has grown in value and popularity as a form of payment. Many may wonder where this currency is accepted and about the future of cryptocurrency.

Companies That Accept Cryptocurrencies

A currency is as useful as the goods you can buy with it. But where can you spend your cryptocurrency, and what can you buy with it? The number of companies accepting cryptocurrency as a form of payment has rapidly increased, partially due to the suddenly increased value of various digital currencies.

Bitcoin

Bitcoin is the first and currently most valuable cryptocurrency available on the market, as well as the one accepted by the largest number of enterprises. It has garnered praise for its portability, divisibility, and inflation resistance, accompanied by an intensified market presence, which can be seen as indicators of the bright future of Bitcoin. You check out the best bitcoin trading platforms here.

Bitcoin is now globally accepted as a payment option in over 15,000 businesses. Note some of the leading companies that accept Bitcoin, as well as other cryptocurrencies:

• Overstock accepts Bitcoin and Ethereum payments.
• Amazon welcomes crypto payments through Purse.io and Bitrefill.
• Visa requires crypto payments to be conducted in USD Coin (USDC)—a type of cryptocurrency referred to as a stable coin.
• PayPal buys, sells, and holds cryptocurrencies. Venmo is a digital wallet app (owned by PayPal) that accepts Bitcoin, Litecoin, and Ethereum.
• Home Depot accepts Bitcoin through the Flexa checkout systems.
• AT&T (a US telecommunications company) allows crypto payment through BitPay.
• Whole Foods permits Bitcoin payments through Flexa’s Spend app.
• Starbucks accepts crypto payments via the Bakkt app.
• Coca-Cola recognizes Bitcoin as an official payment method.
• Lush (a cosmetics’ online store) accepts Bitcoin.
• Twitch gamers can pay for subscriptions with Bitcoin.
• Expedia allows you to buy flights and forms of travel with Bitcoin.

It’s expected that more companies will begin accepting stable cryptocurrencies as payment. Some other major companies are also planning to accept cryptocurrencies in the near future, such as Mastercard, JP Morgan, Goldman Sachs, eBay, WeWork, and Landry’s restaurants.

Cryptocurrencies as a Form of Payment

There are over 6,700 cryptocurrencies in existence today, with an estimated value of $2.2 trillion. Some of these emerging currencies are clones or forks of the original cryptocurrency.

Are cryptocurrencies the future? Businesses can no longer ignore their overwhelming presence on the global market, many of which have begun accepting them as forms of payment. Cryptocurrencies have often been referred to as the digital cash of the internet. It is projected, however, that this decentralized payment system will be accepted by increasingly more brick-and-mortar businesses.

The payment process with cryptocurrencies is quite simple and secure. Whether you’re paying on the internet or getting coffee in Starbucks, by using cryptocurrencies, you’re not giving away any sensitive information—so no one can access your personal crypto wallet.

Altcoins are an alternative to Bitcoin—based on the same technology—but with the ability to produce more coins in a shorter period. Although they don’t have the same market value as Bitcoins, altcoins (Ethereum, Ripple, Dash, Litecoin) are becoming increasingly popular, making the future of Altcoins look promising.

There are multiple ways to use your cryptocurrencies on various platforms:

• Shopify, Magento, and other e-commerce platforms are integrated with Bitcoin and allow you to directly pay for their services, which is a good sign for Bitcoin’s future market value.
• If you want to pay at a location, point-of-sale (POS) systems are available, such as DC POS and Soft Touch.
• Billing and accounting solutions—most notably Host Bill and Invoice Ninja—can be used to conduct direct crypto payments.
• There are also apps designed as payment services that allow you to scan the shop’s QR code on your phone and automatically pay with your chosen cryptocurrency.

Cryptocurrencies are known for their transparency—payments are recorded on a blockchain online ledger and are visible to anyone that has access to it. You can transfer funds, and your transactions can never be lost because they are instantly recorded. And transaction costs are lower than paying with a credit card.

When you pay with cryptocurrencies, the payment service that acts as an intermediary instantaneously converts the digital currency to the currency of the seller’s choice at the exchange rate that is valid at the moment of purchase. In this way, sellers don’t have to worry about fluctuations and giving away their products for less than their estimated value.

Will cryptocurrencies last as a form of payment? Observing the advanced block technology behind the scenes and the increased usage (especially with Millennials) as well as the rise in value, it seems that cryptocurrencies will be relevant for quite some time.

Key Takeaways

Regulations Regarding Cryptocurrencies

Digital wallets are online software systems that are used for buying, selling, and transferring cryptocurrency. These systems are either hosted by a financial service or an exchange service. They can also be unhosted, allowing users to transfer cryptocurrencies directly from one wallet to another.

In cryptocurrency dealings, there are no banks involved, and users don’t need to provide any personal information. Since the transactions are semi-anonymous, tracking and recovering Bitcoin is quite difficult—in case of theft, it’s nearly untraceable. Because of this, the Bitcoin future is somewhat unstable and difficult to predict.

Another element that distinguishes cryptocurrencies from real currencies is that they are immune to government interference. Virtual currencies don’t have the support of a government or central bank. Their rate is determined by market demand. Certain cryptocurrencies have recorded large returns, although their value can be subject to exchange rate volatility.

Is Cryptocurrency the Future of Finance?

Cryptocurrency exchanges are legal in the US but have some regulations imposed on them, considering cryptocurrency as a digital asset and, therefore, taxable property. The regulation process, however, is still not delineated because the US government has some security concerns regarding virtual currencies in general.

The main concerns regarding this form of payment are the possibilities to anonymously finance terrorism, commit fraud in tax evasion and money laundering, and use it as payment for other illegal activities.

Does cryptocurrency have a future within the global economy? Governments are considering various approaches toward embracing and controlling digital currencies.

Laws and Regulations by Country

Western countries, including the US, are striving to implement more traditional security measures to allow the continued use of these new currencies, while some nations—such as China and Colombia—have banned all trade and usage of cryptocurrencies.

Western countries, including the US, are striving to implement more traditional security measures to allow the continued use of these new currencies, while some nations—such as China and Colombia—have banned all trade and usage of cryptocurrencies.

This, however, has not affected the value of digital currencies on the global market. What may threaten the future of cryptocurrency, however, is the development of new, national cryptocurrencies backed by central banks.

In the US—where cryptocurrencies are more commonly used—stricter regulations on transactions and crypto markets are already falling into place. Any transactions over $10,000 have to be reported to the IRS. These funds will be treated as taxable income.

Cryptocurrency is legal and accepted in the EU and G7 countries (Canada, France, Germany, Italy, Japan, UK, and the US), as well as in Mexico, India, South Korea, Australia, and New Zealand. In some countries, such as Canada and Russia, it’s legal to mine for cryptocurrencies—more specifically Bitcoin—but a banking ban is in place, meaning that payments and transactions with this virtual currency are not allowed.

Predictions for Cryptocurrencies

Is cryptocurrency the future? Some cryptocurrency experts say it’s the future of money, while others believe that the whole venture will fail in the coming years. With Bitcoin still maintaining precedence as the best and most valuable cryptocurrency, many people ask: what are the possibilities with Bitcoin?

Note some educated predictions about the future of Bitcoin and other cryptocurrencies:

• Cryptocurrency will expand its presence on the commercial market.
• The value of cryptocurrencies will increase with the value of national currencies.
• Governments will impose stricter regulations and higher tax rates on cryptocurrencies.
• More Central Bank Digital Currencies (CBDCs) will be created.
• Blockchain-based cryptocurrency will expand beyond the finance industry.
• Bitcoin will be accepted as the next international currency.
• Besides Bitcoin, other cryptocurrencies will grow and expand more rapidly.

Does cryptocurrency have a future? It seems that the crypto industry is here to stay. And the future of Bitcoin seems more certain in comparison to other cryptocurrencies—mostly due to its enduring presence on the market in the past decade and its steady rise in value. More and more people are genuinely considering it as a viable payment alternative.

But the future of Altcoins doesn’t seem as certain as that of Bitcoin. But following its surge in market value, the prognosis is favorable.

Conclusion

Are cryptocurrencies the future? With rapid digitalization in all spheres of our lives, it’s not unlikely that cryptocurrencies will assume a more significant role in the world of finance. What remains to be seen is if cryptocurrency will continue to be used and its market value rise—or will it languish and slowly fade away?