Will cryptocurrency become the main currency of the future?
I am beginning to invest into the stock market as an 18 year old. I am a beginner and would love some tips and tricks. Thanks!
It's great you're thinking about your financial future now. I doubt crypto currency will become the main currency of the future primarily because governments cannot control it. The underlying blockchain technology will most likely become mainstream though but they need to address the computing/electricity challenges it creates.
Crypto currency investing is very speculative at best because it's not based on any real underlying asset and doesn't generate cash flow like companies do making it hard to value.
I doubt it because a lot of the countries are currently in Lockdown and the situation seems grave seeing that there is no cure for Covid19 at the moment. People are preferring to have the liquidity with them at the moment rather than invest it in uncertain areas. Plus there are a lot of countries that have banned Cryptocurrency. So I would suggest you to exercise Caution before proceeding here. Try and invest only in traditional avenues at the moment as they are more dependable. Preferably in Government held bonds etc. Support your economy.
Bitcoin is the only cryptocurrency that has the potential to have a meaningful impact on the world in the future. As such, this answer will only focus on bitcoin.
Arguments against bitcoin tend to miss the point.
You'll hear statements such as "not backed by anything", "speculative", "used by criminals on the dark web", "government will ban it", "governments don't control it, so that's bad" "the underlying blockchain technology is good, bitcoin is not", etc.
NOTE: saying "blockchain is good, but bitcoin is not" is misguided, to say the least. Imagine someone told you "aerodynamic [sic] is good, but not airplanes", or "H2O technology is good, but not water". It's silly, incorrect, and it's just grammatically wrong to use "blockchain" as an abstract noun.
We could spend hours discussing why the above is all wrong. Perhaps more easily, however, let's ask ourselves this:
How long has the US dollar existed? Do you know what backs the dollar (gold? military? faith? nothing?) What is money? Why is the US dollar the world reserve currency? What were the previous world reserve currencies? What happens to fiat (government-dictated) currencies over time? What is inflation? What is deflation? What is the Federal Reserve, and how does it influence monetary policy?
The more you learn about government-led (fiat) currencies, the more you'll learn about a particular pattern they all follow (hint: it does not end well). Then, you'll be able to learn why a groundbreaking asset like bitcoin holds so much promise for the future in ways that traditional fiat currencies simply cannot.
Hope that helps, and all the best to you.
Hey Sean, Unfortunately it's literally impossible to See into the future, So i apologize in advance for that answer. I think it really breaks down to your speculation of the future. Here in America, we use Credit/Debit Cards to handle transactions. In Asian Countries like China/ Korea. They simply don't use Credit Cards like we do. The majority of their transactions are done through QR codes transactions through their mobile phones. (Wechat, Alipay, Tenpay) This is their cultural norm, Asia Definitely still has Credit cards services. However it is simply not the norm.
Therefore if you thinking about the future of Crypto It is extremely important to look at it in a broader Context, Even understand the worlds view. Nobody knows if Crypto will replace Traditional Fiat money. That is something we need to observe and simply watch how it plays out. But I do believe in the Underlying technology, which is Blockchain. Which Core value is simply "Trust". I look forward to the future, As a 25 year old man in Information technology. I believe It's up to us. The next generation of leaders to build the 5th industrial revolution.
I first heard about Bitcoin as a freshman in High school, My friends and I traded and used these coins for video games. such as Runescape, Maple story, even counter strike. Back then, a single bitcoin was around $5. Today it's significantly higher, almost $4,000 per coin. I also invest in multiple Crypto Currency