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Crypto Space Will Be Changed by the End of 2021
The year 2021 is already witnessing many breakthroughs in the crypto space to shape the future of many different industries. More than half of the year is passed, and new trends are emerging every day. In this report, we are going to discuss what else can be expected in the next four months before the year ends.
Cryptocurrencies have accurately revolutionized the notion of security and transparency in the world of banking and finance. Many other industries have started adopting blockchain technology because of its high-level security. Despite all the achievements in the crypto world, there is constantly increasing pressure on blockchain to justify different use cases. So, the space is continuously emerging.
Let’s discuss what will change by the end of the year.
The very first thing to consider is the risk assessment models. Investing in digital assets is indeed quite risky. When you make any transaction, it is practically irreversible, and the value might fluctuate drastically. So, it makes risk management very crucial before investing your money. We can see the risk assessment models to improve by the end of the year because it indeed is required to have the risk evaluating models.
The second thing is the cost. The exchanges are continuously improving in terms of their innovative technologies and upgrades. It will not be wrong to say that they might get less costly due to their improved designs.
We can see that crypto adoption is increasing worldwide. But, the taxation for cryptocurrencies is still ambiguous. Cryptocurrencies are pretty dark in their usage, i.e., they sometimes attract many illegal criminal activities. Keeping this in mind, we can see the involvement of the government to outperform the shortcomings of the crypto space. Digital assets will soon face tax regulation.
Central Bank Digital Currencies can be a game-changer. Central banks are thinking about the substitution of digital currency by the bank-issued digital money, which people can use for their daily use. All this has been initiated by China's digital yuan projects. It is said that payments using CBDCs can reduce the settlement risk during the financial systems. Also, transactions will be cost-effective because the cost of storing, transporting and distributing the currencies will be eliminated. CBDCs can essentially become the future of finance because many countries are attempting to create the tokenized money.
Additionally, stablecoins will grow, and NFTs will witness more adoption. Non Fungible tokens are already being used in the gaming and art industries because they offer the people avoiding the complex onboarding process of centralized platforms for trading products in the real world.
Apart from the things mentioned above, people can witness Exchange Traded Fund (ETF) by the end of the year. It is pretty apparent that crypto and monetary organizations are now working collectively for the progress in innovative technologies. Specific changes in the crypto space can potentially lead to the well-established market of cryptocurrencies.