After the turbulent events of 2020, it’s no surprise to find that most experts are expecting a huge adoption rate for cryptocurrency. The legitimization of Bitcoin, Ethereum, and other forms of digital currency continues to happen. The adoption of crypto is expected to happen at both the individual and corporate levels. For those that have already invested their time and money into cryptocurrency, it always pays to be one step ahead. Watching the emerging trends means having a better idea of what to expect in the near future. So with that in mind, here are the top cryptocurrency predictions for 2021.
It’s already very clear that the global pandemic has accelerated crypto adoption. Businesses from almost all sectors have introduced Bitcoin payments into their financial structures, with the added benefits of blockchain and distributed ledger tech only making the process more appealing. Although there are variations in the predictions about the real-world rates of adoption for crypto, it is commonly expected that by 2025 the cryptocurrency market will grow to around $40 billion. This is largely due to the demand for transparency, which is made far easier with blockchain. When digital trust is of paramount importance to brands and consumers alike, the blockchain is likely to be the stepping stone to increased cryptocurrency use.
The Domination of Private Blockchains
Market growth for crypto looks increasingly likely to be driven by private blockchains. By the end of 2021, it is predicted that those private blockchains are going to have the largest portion of the market. While enterprise blockchain is expected to increase in use, those models are going to need a lot more customization. For business-to-business use, private blockchain use is simply much more efficient. Significantly more private and reliable, and (of course) as transparent as it gets. The use of private keys that only a select few employees have access to will likely become the norm for big and small brands alike.
China Continues to Lead
Even before 2020, China was leading the world in terms of Bitcoin adoption. That’s because China has a fully developed national initiative in place, with a state-backed BBSN (Blockchain Based Service Network). That infrastructure is helping to make blockchain and digital currency an integral part of China’s digital footprint. As China plans to open up this infrastructure globally, it has become increasingly apparent that other countries are acting too slowly when it comes to blockchain and crypto.
However, despite China leading the way as a nation adopting the fledgling currency, it doesn’t mean that opportunity to invest in the best cryptocurrency and bitcoin doesn’t exist elsewhere. In fact, the United States is estimated to be a big user of crypto in the future, due to how banks, businesses and even charities are beginning to adopt the use of this digital currency within transactions. This trend is also continued to grow, meaning that the United States starts to seize the best investment opportunities in cryptocurrencies as buying prices are still low compared to what they’re expected to be in few years because the crypto continues to catch on. Despite not having the potential to outgrow the Chinese, the USA is expected to have a more rapid growth rate in the near future than China, meaning you can obtain a big return of investment sooner.