The Growth of Digital Currency: Trends to Watch in the Coming Years

October 24, 2024 (Investorideas.com Newswire) Over the years, digital currencies have cemented themselves as a popular investment tool and means of payment for transactions. But will it still hold its own and even become more mainstream in the coming years? Read on to discover the trends in the coming years.

Digital currency has come a long way, and is now quite mainstream today; according to a research report by Triple A, a digital currency payment gateway, 520 million people now use digital currencies, which is a noticeable growth from 420 million people in 2023. Digital currencies becoming more acceptable can be attributed to many factors, including cross-border transactions, a more seamless and less expensive process, financial inclusion, and the likes. With that being said, what can people expect from digital currency in the years to come? This article will discuss the trends to look out for as digital currencies continue to grow.

Future Digital Currency Trends To Look Out For

Digital currency, especially cryptocurrency, thrives on trends, as they inspire investors and drive the market. Already, its seamless processes and cheaper transaction costs have encouraged many industries to embrace it, a notable one being the casino industry. Now, anyone can get access to the best no verification crypto casinos, where they can use any cryptocurrency of their choice and keep their identity anonymous by avoiding verification processes. With that being said, interested investors can keep the following trends in mind.

Bull Markets Taking Over After ETF Approval and Halving

According to the New York Times, Bitcoin's value has increased by 150% in 2024, making it a highly sought-after digital currency. This is because its price was $44,000 at the beginning of 2024, but increased to nearly $70,000 by late May. What's more, its bullish market may continue until 2025, which is good news for investors looking to invest in Bitcoin later this year or next year. With that in mind, they can expect Bitcoin's price to reach or even surpass $77,000 when 2024 ends, according to predictions by experts such as bullish panellists Dr Sathvik Vishwanath, CEO of Unocoin Technologies and Ronen Cojocaru, CEO of 8081 Inc.

This bullish trend could be partly attributed to the spot EFT approval. Brokerages introduced Bitcoin ETFs in 2013, and they've been in the system ever since. However, they weren't SEC-approved until January 2024. Financial firms often purchase these ETFs and offer them as shares to investors. With that being said, these investors don't hold any bitcoin, but the ETFs hold the same value as the cryptocurrency. This means investors can have a cost-effective investment in Bitcoin without dealing with crypto exchanges. Because of this, the cryptocurrency has become more attractive.

Another factor worth looking into is the Bitcoin halving that took place in April. This event usually happens every four years, and during this time, the reward for mining Bitcoin is cut in half. The result is a reduction in how many new coins are in the market. And now that there's a dip in supply, the demand for it will become higher, leading to increased prices and value.

AI and Crypto Working Together

Another trend making waves is the merging of AI and Crypto to create AI tokens. These tokens are cryptocurrencies that are made for AI-related projects, services, and apps in the blockchain systems. And just like conventional coins, these tokens can be used for three main functions. For example, they can be the medium of exchange for any transaction on an AI-powered platform. This means people can use them to engage in activities on these platforms, get data, and so on. Better yet, these tokens give owners governing rights to make decisions regarding the platform's direction and development. Aside from this, users who deserve appreciation can be rewarded with these tokens.

AI tokens are now making their mark on the crypto industry, as nearly 90 of them are circulating now. And while all the tokens' combined value sat at $2.7 billion in April 2023, it's now more than $39 billion. It's also worth noting that Fetch.ai (FET), which is among the popular AI tokens, increased its value by 329%, after merging with tokens from SingularityNET and Ocean Protocol to form a new token: ASI (artificial superintelligence). The goal of this merger is to introduce a more decentralized approach to AI, instead of large tech companies dominating the industry.

More Regulations of Cryptocurrencies and Exchanges

During the early stages of crypto, regulation wasn't as strict, which has its perks but also its risks. For starters, FTX and other major crypto exchanges collapsed, leaving many investors with lost funds as a result of lost monitoring and regulations. Aside from this, fraudulent activities and money laundering are way easier to carry out with crypto platforms and currencies. As a result of these issues, investors have to brace for stricter regulations in the crypto sector as the years progress and the industry keeps growing. The head of the SEC, Gary Gensler, has been vocal about his support for this development, commenting that the industry is riddled with manipulation and fraud.

According to the SEC, crypto is a security and functions more like a stock, which means crypto first have to register with the organization and follow its disclosure requirements. But this is applicable in the US, the only country that has enforced crypto laws. But that's not to say that other countries don't have laws for this purpose. However, these countries may be more firm with the regulations, just like the US is, as time progresses. But it's noteworthy that other countries have their own approach to the situation; some have accepted crypto as formal legal tender and regulate it as such. It's also possible that international frameworks and treaties would be developed to create uniform regulations on crypto.

Digital currency, especially crypto, has permeated many industries and it's become more mainstream than ever before. Due to this, its price and value keep growing. For example, Bitcoin is experiencing a bullish market that could continue in 2025 while the merging of AI and crypto is creating AI tokens that are rising in value. These trends show that digital currency may be in the system for a very long time.

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