Blockchain technology and cryptocurrencies have seen a meteoric rise in their fame ever since they were introduced in the market.
Millions of people all across the world have invested billions in cryptocurrencies and other off-shoots of blockchain technology, like NFTs, among other options.
However, the crypto market is as volatile as any market can be and has seen its ups and downs in the past few years.
Similarly, the trends in cryptocurrency and blockchain have been changing with time; as the world adjusts to the changes in the crypto world, more and more governments and entities are beginning to see cryptocurrency as the future of finance.
For anyone learning to trade crypto, it is imperative to know the market dynamics and be aware of how the whole crypto world works.
Below, we have mentioned some of the current and future crypto and blockchain trends that you need to be cognizant of before stepping into the crypto world.
Blockchain and crypto are going green
It isn’t a secret that crypto mining uses way too much energy. Especially first generation cryptocurrencies like Bitcoin take up too much energy and their use in everyday transactions is not sustainable.
Because of this reason and the rising threat to the environment that the increased mining of crypto poses, many companies, like Tesla, stopped accepting Bitcoin in order to promote more environment-friendly cryptocurrencies.
This trend is not going away anytime soon as more and more stress is being put upon the introduction of coins that use less energy and do not pose a threat to the environment.
Non-fungible tokens, or NFTs, rose to fame in 2021 and took the internet by storm, and from the looks of it, they are here to stay.
With initiatives like the Metaverse taking shape, NFTs will have a major role to play in the VR world that is becoming increasingly popular.
On top of this, NFTs, being based on blockchain technology, offer a way to online ownership that provides people with a way to protect their property and keep their online assets safe.
NFTs have also moved beyond online art; many artists are releasing their tracks in NFT format to prevent piracy and make the most out of their properties.
Also, companies like Nike have started making NFT sneakers to be worn in the Metaverse, which again shows that the big companies have taken notice of the NFT craze.
With the way everything is going, the NFTs-craze is only likely to increase as more entities adopt their use.
Governments adopting the use of cryptocurrencies
Cryptocurrencies are a form of decentralized finance, or DeFi, which allows for safety and privacy in transactions, meaning the user can safely conduct financial transactions without worrying about getting hacked or having their money stolen.
Because of this reason, along with many others, more nations are looking to legalize cryptocurrencies in a controlled way that will allow people the freedom to trade and use crypto without having to worry about the law.
However, with the legalization of crypto, traders and crypto holders will likely be subjected to crypto tax, meaning they will have to pay a certain amount to the government in order to be able to trade crypto freely.