Blockchain Trends of 2021

Blockchain Trends of 2021

Predicting trends in the cryptocurrency industry is always exciting. Compared to fiat currency there’s so much potential and the trajectory is near-infinite due to its digital nature.

Which coins will see prominence? Which ones will fall by the wayside? Furthermore, what kind of technology will we see integrated with blockchain and bitcoin as a whole?

The Rise of 5G

5G is heralded as the new data transmission speed. Companies are gearing towards new services, concepts and products that harness it, including the cryptocurrency industry. There’s a lot that can change- DeFi apps and mining are just the tip of the iceberg.

5G opens up transaction management capabilities, such as better and faster investment decisions and trading segments done by computers. The wire barrier will be overcome and present a level playing field no matter the location.

Change in Transaction Costs

Blockchain transactions are thought to be multi-directional, but generally it will be cheaper as technology becomes more affordable. However, in terms of Bitcoin transactions the cost may be higher by a fine margin.

Cost of operation will also affect cryptocurrency within the e-commerce market. Platforms such as Bitcoin Era will cater to crypto players in telling how the signals go and automate most of the trading done with robots.

Improvement in Risk Assessment

As bitcoin becomes a viable asset there’s a need for a risk assessment model. Without it, people are left to guess which cryptocurrency will be gaining value and which ones will be losing value.

Investors will need to consider the following risks, such as price, technical and organizational when buying or selling digital assets. Cryptocurrency volume, data protection and legislative changes can drive a crypto coin’s value depending on elements that surround it.

Doing this opens up the market to beginners and those who have considered investing in bitcoin but are too afraid of the risks involved in bitcoin trading.

Possible Crypto Crisis and Harbors

Cryptocurrency is now subject to economic tests and challenges. The demand and supply are now affected by a variety of factors that affect fiat currency. An example is the relationship between altcoins and bitcoins- as one goes up the other goes down.

Crypto harbors are to be expected when regulation has gotten ahold of cryptocurrency. Offshore crypto havens will appear in tech and financial-savvy countries such as Japan, Switzerland or Korea.

Possible Tax Regulations

Last but not least, the possibility of crypto getting taxed is now higher than ever. Since Bitcoin has reached the mainstream spotlight the powers-that-be are focusing their efforts in taxing digital assets. Some countries and governments are now using KYC, or know your customer procedures to develop a protocol on digital asset legislation.

Monitoring tools may also make an appearance, with governments collaborating together to see if cryptocurrency can be tied down. This year, the world could very well witness bitcoin tax evasion cases and lawsuits.

These are just some of the trends that may happen in blockchain and the world of cryptocurrency. Positive outcomes are to be expected, as are innovations that can completely change the game.

Cristina Macias
Cristina Macias is a 25-year-old writer who enjoys reading, writing, Rubix cube, and listening to the radio. She is inspiring and smart, but can also be a bit lazy.