2021’s Biggest Cryptocurrency Trends So Far
What cryptocurrency trends, you ask? The number of crypto users has grown by 66 million since 2018, many experts believe the virtual currency is the future. However, to truly understand why Bitcoin and other cryptocurrencies are the future of finance, it’s essential to first look into these currencies’ future holds.
Here, we will talk about some cryptocurrency trends that we expect to blow up in 2021. Read on for some insights that you need to consider when investing in cryptocurrency and spending it.
Tighter Crypto Regulation
Tax regulations are one of the tremendous changes that cryptocurrency will see in the coming decade. You may not consider this a cryptocurrency trend but t certainly will affect the crypto community. There is currently virtually no taxation on Bitcoin and other digital currencies because the coins are not affiliated with any government.
You own Bitcoin, much like your house or your car. Spending it is similar to trading your car for a piece of machinery- it’s not a purchase but a trade.
You may need to pay capital gains taxes in some cases, but only when gains are realized. So, for example, if you never sell your Bitcoin but rather exchange it for other goods and services, you never need to pay taxes.
However, many Bitcoin exchanges are implementing a Know-Your-Customer (KYC) verification procedure. The government can track who is using Bitcoin and how much of it. This means that taxation on cryptocurrency is likely going to take place either this year or in 2022.
Other monitoring tools are also in development, and there will likely be more effective government regulations on Bitcoin. These new tools may let officials see transactions that people are making. Therefore, Bitcoin will become more like a government-issued currency soon.
Digital Chinese Yuan
Some East Asian countries are pioneering the solidification link between digital currencies and virtual wallets. Thailand, for example, is implementing mandatory ID checks for those who use Bitcoin exchanges.
For example, Bitcoin ATMs here in the US are 100% secure and save none of your information. However, the US government may implement ID checks in some instances, especially in adult industries such as gambling.
Another East Asian country is implementing a “go-big-or-go-home” philosophy when it comes to virtual currencies. China has been test-driving a system for virtual yuan, which is their official government currency.
Probably, people will soon be using virtual yuan on apps like WeChat Pay. Of course, this fact doesn’t massively affect American consumers. Still, it does set a precedent for making the government-issued currency a type of Bitcoin. Doing this would lend well to more effective crypto regulations across the board.
In-Store Bitcoin Spending
This is a cryptocurrency trend that most of us can get behind. It used to be that cryptocurrency was exclusively spent online; now, times are changing. Bitcoin- the most popular form of crypto out there- is now moving into the in-person spending arena.
Credit card companies like Visa are creating Bitcoin debit cards. You can load Bitcoin onto these cards in the same way you would load money from the bank onto traditional debit cards. You can then swipe them in stores that support this transaction.
These cards are made to work anywhere and everywhere, not just at venues that accept Bitcoin. You can use these debit cards at literally any store that accepts Visa payments.
In 2021, we can expect these transactions to become more popular. Other banking companies will likely follow suit. Mastercard is currently in the process of bringing cryptocurrency onto its network.
PayPal Crypto Services
Credit card companies aren’t the only ones realizing the potential of Bitcoin. For example, PayPal is now letting you put a few different cryptocurrencies into your digital wallet. These currencies include Bitcoin and Bitcoin Lite (of course), including Etherium and LiteCoin.
This payment system lets you pay any online venue in cryptocurrency; including, sites like Amazon and even retail store’s online sites (Target, Best Buy, etc.).
Affiliated stores receive their payments in fiat currency, reducing problems for the seller and ensuring no unnecessary risk for the sellers.
You can store Bitcoin in your PayPal wallet and pay directly from the app. However, if you prefer, you can transfer crypto into other virtual wallets (much like PayPal lets you transfer cash to a bank).
Bitcoin use by major credit card companies and PayPal may also contribute to further future crypto regulations. These trends build off of each other rather than standing alone. So while you prepare for the convenience of using Bitcoin anywhere, you also need to prepare for taxation.
Easier Access to Bitcoins
In the past, many people accessed Bitcoins via mining. This tedious process was highly time-consuming and expensive (since you would need to purchase fast technology for mining). People have recently begun to realize that it isn’t worth the small reward received.
People then moved towards purchasing Bitcoin via online exchanges. Only the most avid miners continued to produce Bitcoin, but its use did not decrease. Online exchanges were great for the most part but could take a long time to process.
That’s why 2021 is the year of the Bitcoin ATM.
Bitcoin ATMs are machines that exchange fiat currency for crypto. Users insert bills into the machine, and in return, Bitcoins are instantly deposited into their eWallets. But, of course, you can also exchange Bitcoins from your eWallet for cash- the process goes both ways.
These machines are available for use at many gas stations, retail stores, and more. They’re easy to use since all you need to do is scan your ID and eWallet QR code. Then, insert bills and check to make sure that Bitcoins immediately appear in your eWallet.
The machine will then delete the items that you scanned. It will be as though you never checked your ID. The machines are just as secure as they are easy to use.
5G’s Effect on Cryptocurrency Trends
If you keep up with tech trends at all, you already likely know that 4G is slowly going out of style. 5G is faster, more effective, and gives you a more robust connection on virtually all applications.
5G also is set to have a massive impact on cryptocurrency markets. Transaction management isn’t going to be limited to slow data network speeds. Instead, there are going to be higher-frequency trading segments. In addition, computers will no longer limit investments since 5G offers low latency.
As of early 2021, traders often still need to put their servers close to crypto exchanges. However, the length of the wire isn’t always going to affect the speed of transactions. Soon, 5G will give everyone the chance to exchange crypto for services, regardless of their location, immediately.
As 5G proliferates, it also is likely that more people will understand the convenience of Bitcoin. In addition, many experts believe that faster technology will make crypto more mainstream. What does this mean? That more people will take the time to start understanding cryptocurrency trends and spending Bitcoin liberally.
Consistent Market Growth
As of early 2021, the cryptocurrency market is booming. There is high demand for Bitcoin and other cryptocurrencies such as Ethereum. Experts and miners believe that this market will grow both this year and in the coming years.
Bitcoin alone is currently worth USD 1.6 billion. This market is expected to rise to $2.2 billion by the beginning of 2026. These figures don’t even account for other popular types of virtual currency.
Since Bitcoin will grow at 7.1% per year, this market growth is excellent news for investors. If you were to purchase only $100 worth of Bitcoins right now, you would have an additional $7.10 next year. In 10 years, you would accumulate $71.
Compared with the low-interest rates that government-issued currency accrues in banks (only 0.04% in many cases), this is a wonderful way to save and gain.
However, we will need to wait and see if expert predictions come true. In addition, the rise of crypto regulations may impact this growth either positively or negatively. Either way, though, crypto is looking like a significant investment today.
Capitalize on 2021 Cryptocurrency Trends
Now that you know some of the top cryptocurrency trends of 2021, it’s time to get started. Contact our experts with any remaining questions that you have about investing in Bitcoin. We’re excited to share how you can get in on these coming trends and make some money with this knowledge.
We also are happy to help you find a Bitcoin ATM in your area so that you can start investing in cryptocurrency today. Since we’re committed to helping you make safe, secure, and simple purchases, we look forward to talking with you soon.