What will the state of cryptocurrencies be in 2027? Here are 5 forecasts

It is the year 2027. It’s a period of enormous scientific growth and creativity, but it’s also a period of unrest. In 2027, how will the cryptocurrency market look? (For those who don’t know, it is a quote from the video game Deus Ex from 2011.)

Even though making long-term forecasts is notoriously difficult, it makes for interesting thinking exercises. Five years is the perfect amount of time for things to change, but one year is too short for significant changes.

The most unlikely and ridiculous things that might occur during the next five years are listed here.

  1. The metaverse won’t expand.
    Although the metaverse is a big subject, the majority of people have no concept what it truly entails. The metaverse is a comprehensive virtual environment that is developed by its users and has unheard-of interoperability. It operates in real-time, supports any number of users, has its own economy, and never stops or resets. In principle, a wide range of programs, such as games, video conferencing tools, services for granting driver’s licenses, or anything else, might be incorporated into the metaverse.

It is evident from this definition that the metaverse is not a particularly new phenomena. Most of the aforementioned characteristics are present in games and social networks, which have been around for a while. Interoperability is undoubtedly a challenge that requires considerable attention. The ability to quickly move digital items across games or a digital identity without being bound to a particular platform would have been a very helpful feature.

However, no need can ever be fully satisfied by the metaverse. Some services shouldn’t even be included in the metaverse. Due to their operators’ reluctance to give up control over them, certain services will continue to be isolated.

Additionally, there is the technical consideration to make. The metaverse, according to the cyberpunk movement of the 1980s and 1990s, implied complete absorption. Virtual reality glasses are currently thought to be the only way to achieve this level of immersion. Every year, VR gear improves, but it’s not what we anticipated. Even among die-hard gamers, VR is still a niche phenomena. Most regular folks would never don these spectacles only to contact their grandma or trade some cryptocurrency on an exchange.

A technology advance like smart contact lenses or Neuralink is necessary for true immersion. Five years from now, it is quite improbable that such technologies will be extensively employed.

Wallets will develop into “super applications”
These days, a decentralized finance (DeFi) user must contend with hundreds of protocols. There are hundreds of them, and the number of interfaces, exchanges, bridges, and lending protocols is increasing constantly. Even for experienced users, having to cope with with a variety of technologies is annoying. An unfavorable situation is made worse by the likelihood of broad adoption.

It is preferable for the average user when the most services are accessible via the fewest possible universal apps. The best option is when they are already included in their wallet. Why go to several websites to get services like storing, trading, moving to other networks, and staking when everything can be done via a single interface?

Which exchange or bridge they utilize is irrelevant to the users. They simply care about timeliness, security, and affordable prices. Many DeFi protocols will ultimately evolve into back-ends that support well-known wallets and interfaces.

  1. Bitcoin will achieve parity with the U.S. dollar or the euro as a unit of account. Money has three basic purposes: as a medium of exchange, a store of value, and a unit of account. Numerous cryptocurrencies—most notably stablecoins—are used as payment methods. Among cryptocurrencies, Ether (ETH) and, to a much lesser degree, Bitcoin (BTC), are utilized as stores of value. But the world’s primary unit of account continues to be the US dollar. Bitcoin is priced in dollars, just as anything else.

The adoption of cryptocurrencies as a kind of unit of account will mark the true triumph of sound money. Right now, Bitcoin is the leading contender for this position. Such a triumph will mean a profound change in perspective.

What has to occur during the next five years in order for this to be possible?

For cryptocurrencies to serve as a primary unit of account, there must be a significant decline in trust in the US dollar and the euro. By printing trillions of dollars in fiat currency, allowing unusually high inflation to rise, freezing hundreds of billions of a sovereign country’s reserves, and other actions, Western authorities have already done a lot to weaken this faith. This might only be the beginning.

What if inflation really worsens considerably more than expected? What if the financial crisis lasts for a long time? What if a fresh outbreak starts? What happens if the war in Ukraine spreads to nearby nations? These are all eventualities that might happen. Of sure, some are absurd, but they are all conceivable.

  1. The ranking of at least 50 percent of the major cryptocurrencies will fall.
    The likelihood of a significant shift in the top cryptocurrencies ranking is considerable. The list will be cleared of outright zombies like Ethereum Classic (ETC), and projects that now seem to have unassailable places may not only be dethroned but also might disappear completely.

Undoubtedly, certain stablecoins will decline. They will be replaced with fresh ones. Cardano (ADA) will drop to the bottom of the list and formally turn into a living corpse. The undertaking is progressing excruciatingly slowly. Developers don’t just ignore this as an issue; they even seem to perceive an advantage in it.

  1. The cryptocurrency market will become more regionalized.
    Although cryptocurrencies are by nature international, they are not immune to the influence of other nations. The state always has a competitive advantage and a secret weapon. Numerous nations, including the United States, the European Union, China, India, Russia, and others, have either enacted or are threatening to enact tight regulation of cryptocurrencies.

Internal state motives are combined with the influence of global competitiveness. Some cryptocurrency projects began limiting Russian consumers’ access to their services or even freezing their cash when Russia was subjected to severe sanctions. In the future, this situation could recur in relation to China.

It is not impossible to see a scenario in which specific regions of the cryptocurrency economy may benefit some nations while excluding others. In some ways, we are already living in such a future.

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