Predicting the future of digital assets (cryptocurrencies) is one difficult task, as the Industry has been faced with numerous ups and downs but had made an overall progress so far. With more than 12 thousand cryptocurrencies listed on Coinmarketcap, the industry has witnessed a rather unpredictable progress.
As each Crypto Project strives to create a sustainable use case, as this is the only way to secure long term utility in the future, the reality still dooms on the Crypto Ecosystem that Lack of Government Regulation, user adoption and overall investor confidence is still low, hence price volatility is a major wrecker to contend with in such a growing industry.
HOW FAR CAN CRYPTO GO WITHOUT GOVERNMENT REGULATION
Let’s face it, the lack of proper government regulation and adoption is one of the major reasons for low investor confidence in Digital Assets. We have seen Digital Assets that skyrocketed to an all time high, only to shred all the gains within hours. In short, the number of short-term investors in the crypto sphere is more than the number of utilizers of the digital assets, this condition is responsible for the volatile market sentiment of the entire crypto ecosystem as the investors are mostly there to make gains and exit their position.
Most Crypto projects focus on attracting investors instead of building use cases and a motivated community, this results to more people with no passion about the project they invested in.
So the truth is that, without proper Government regulation, the industry seems a bit unorthodox.
How Will Government Regulation Impact The Growth Of Digital Assets
Introduction of Government regulation will boost investor confidence and also ensure that Crypto Projects adhere to established standards before qualifying to be listed for investment. Regulations will ensure projects build actual use cases before opening for public investment.
Predicting The Future Of Digital Assets
To predict the future of Digital Assets, we have to analyze the future of it’s parent foundation; THE INTERNET!!! It is no understatement to state that the future of Digital Assets and the Future of the Internet are intertwined. The future of the internet, will surely decide what will become of the crypto industry.
While Crypto Enthusiasts are moving the motion for WEB 3.0, and even former Twitter CEO Jack Dorsey quoting that he is working on also launching WEB 5.0, we can predict that our current internet is evolving. While these Web Versions will run on the blockchain which will will be powered by a Digital Asset, we cannot predict that either of the Futuristic Web Versions will be the main player in the internet of the future.
Even, father of the Internet, Tim Berners-Lee said that WEB 3.0 doesn’t need blockchain and hinted that we don’t need blockchain technology to run a decentralized internet with better privacy and information management.
As we can see from the above hints, the internet still has an uncertain future even though we all know it is on for an imminent migration. So, what is the future of Digital Assets?
THE FUTURE OF DIGITAL ASSETS
With the metrics above, we can attempt to predict the future of Digital Assets. Web 3, Web 5 and the Metaverse will all play an important role in determining the future of digital assets. The success of either WEB 3 or WEB 5 is a win for digital currencies. The metaverse is also one of the leading technology of the moment, a virtual world built on the blockchain, Metaverse based digital assets will also emerge as big winners in the future should either of the future web versions run on a blockchain.
So the future of digital assets will be bright, if the internet migrates to a blockchain based WEB 3 or 5. Metaverse Based Digital Assets will also become big winners in the future as Virtual and Augmented Realizations are big players in the Internet of the future.
In summary, the future of the internet is merged as thus;
- Migration To WEB 3 or 5 (Blockchain based or Not)
- Introduction Of 5G and Satellite Internet
- Emergence Of the Metaverse As the King Of Social Connections
- Increased Adoption Of AI, Virtual and Augmented Reality Connections