It’s a fact that technology is evolving and there are dozens of innovations and advancements each year. What is more, there is the dramatic evolution of digital currencies and they are certainly transforming the way we use money. However, how it will all evolve and where it will take us is anyone’s guess.

Our society is on the verge of a new form of finance that will utilize a range of different technologies and change the way we use and manage our money. The days of taking out cash from ATMs are almost gone, people pay for things online or use cards. There is no more applying for a mortgage by going to the bank’s branch and fewer people shop in department stores. In today’s digital age, conducting financial transactions of any kind is mostly an online experience for a lot of people. This all additionally escalated over the past two years due to the pandemic. And with each year that passes, money seems to be spending more and more time in the Ether, via phones and laptops.

However, money holds a much bigger future, and we seem to be at the early stages of what is yet to come. Cryptocurrencies and faster and more powerful financial technologies are slowly but steadily changing our concept of money and are really challenging the institutions that are currently managing it. The year 2021 was already a very transformative year for finance, and this year, 2022, is bringing more change.

Digital Currency and Blockchain

Today, everyone is familiar with what cryptocurrencies are and that they are secured and transferred with blockchain technology. Bitcoin is the first decentralized cryptocurrency and it was launched in 2009. Today, it is the biggest and most popular cryptocurrency and its market cap is valued at $786 billion as of early 2022. And even though almost every person in this world knows what Bitcoin is, very few actually know how it functions.

The first and most important thing to remember is that Bicton and blockchain are not the same things. Bitcoin is a currency that operates on its own blockchain network, while blockchain is a shared ledger that links blocks of encrypted data transactions in a network and it is a medium for recording and storing Bitcoin transactions.

Currently, there are more than 16,000 cryptocurrencies and Bitcoin is the biggest, followed by Ether. It is even estimated that the total value of all cryptocurrencies is approximately $2 trillion.

However, there are certain controversies around cryptos, since critics point out that they are not regulated by any central bank or institution, and that makes them even harder, if not impossible to regulate. In respect to that Bitcoin, and other currencies, have already been tied to those who want to use them for money laundering, circumventing capital controls, and buying illegal goods.

Despite all those controversies and market risks, cryptocurrencies never stop being popular and are still growing rapidly. They have become so popular and gained more users that they have reached the point where they may significantly disrupt the world’s economy in the next few years. As a result, countless corporations, investors, and financial institutions have started to calculate the potential financial rewards if they get involved with crypto.

What is more, there are now more and more ways to get involved in cryptocurrencies. There are dozens of trading platforms that people use to buy, trade, and sell their Bitcoins and other cryptos. Some of the most popular platforms are Binance, Hotcoin Global, Mandala Exchange, CoinFLEX, and many others. However, besides these, today there are fully-automated trading platforms that can do the trading for you. One such example is Bitcode AI which is safe, secured, and super easy to use, plus registration is completely free.

Currently, about 300 million people today are using cryptos in some form. Some experts from the industry hope and believe that this number could easily increase by the end of the decade. According to Gartner, by 2024, “at least 20% of large enterprises will use digital currencies for payment, store of value or collateral”. Experts believe that this will disrupt current financial networks and various business models.

The Upcoming Trends

Many experts believe that cryptocurrencies will be used for retail payments in about three to five years. Also, in the next couple of years, there is going to be an increase in interest in the adoption of cryptos by investors and they will use them as investment tools, namely as a hedge against inflation. Also, cryptocurrencies may even become an alternative to gold.

However, this market still remains extremely volatile. Bitcoin is currently valued at around $31,187 which is well below its all-time high ($68,223 on November 10, 2021).

Despite this, there is no evidence or sign of investors and companies backing down from the potential reward that cryptocurrencies can offer. And the prices of cryptos are not the only reason why investors are interested in them. They are also interested in getting into decentralized finance (DeFi). Banks have to serve those companies and are becoming the digital asset custodians, and this is not just a thing in the US, but it’s a global phenomenon.

Governments across the globe are also starting to be more open to blockchain and crypto. Up to 83 countries are now experimenting with this or are implementing the so-called Central Bank Digital Currencies (CBDCs), which represent 90% of global GDP, according to some studies.

Another trend that must not be forgotten is the appearance of NFTs. These are probably the most financially lucrative and technically innovative blockchain-based crypto assets and NFTs can be anything. From a tweet to a video clip to actual physical property in real estate, it all comes down to tokenizing the asset in a digital landscape. This digital landscape can be anything from an algorithm, code for a video orJPEG to the digitized paperwork of the deed of a piece of land.

NFTs are probably one of the most creative waves of the future of money and what it can become. Even though most people see little value in NFTs for now, many predict that by 2026, NFT gamification (GameFi) will be able to propel an enterprise into the top 10 highest-valued companies. Plus, NFTs are expected to become even more powerful in regards to digital marketing and its tools in the next few years.

Just like centuries ago when we switched from traditional trading to actual physical money, today it is changing again. In the digital age we live in, it is only expected for money to become more digitized, too. Cryptocurrencies so far look promising when it comes to changing the future of money, and who knows what can happen in the next decade.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes