What Will be With Crypto Market in 10 Years: Investors’ Predictions

Cryptocurrencies are one of the fastest-growing markets in the modern world. Ten years ago, crypto was popular only among a narrow circle of enthusiasts, while now the word “Bitcoin” is known to people of all ages in most countries of the world. If crypto has undergone such a colossal development over the past decade, it is difficult even to imagine what the next one will bring.

Bitstamp, a crypto exchange, recently surveyed more than 28,000 crypto investors from all over the world to find an answer to this question. The goal was to find out which scenario of how cryptocurrencies might develop experts think is most likely.

The interviewers asked the respondents’ opinions on whether crypto will gain mainstream adoption in the next decade and whether it will become more popular than traditional investment assets. Besides, the investors participating in the survey were asked about the level of trust they have in crypto.

The answers showed a significant positive sentiment regarding the fate of crypto among most respondents. According to them:

• 75% of individual investors and 88% of institutional investors expressed confidence that crypto will gain widespread adoption in mainstream circles within the next ten years.
• 71% of professional investors and 65% of non-professional ones stated they trusted crypto.
• 80% of institutional investors believed that crypto would take over other investment assets.

Thus, the survey revealed that optimism towards the future of cryptocurrencies is a trait shared by all sorts of investors, including individuals, institutions, experts, and amateurs.

Geographical Differences

Although the absolute majority of respondents demonstrated faith in crypto and its bright future, the survey revealed the existence of some disparities between the opinions of investors depending on geographical factors, in particular the countries of their residence.

Thus, citizens of developing countries showed a higher level of trust in crypto than those living in countries with highly developed economies: 79% versus 61%, respectively. In addition to crypto, residents of developing countries proved that they also have high trust in other decentralized finance tools. This phenomenon primarily stems from the fact that in countries with emerging economies, residents have little trust in traditional financial systems, so they are more often looking for effective alternatives. 

In this context, the example of El Salvador, which granted crypto legal tender status in 2021, is the most demonstrative. The country took such a step for numerous reasons. Still, among them, an important role was undoubtedly played by the fact that the financial system of El Salvador was not experiencing the best times, and the integration of crypto tools into it was intended to strengthen and diversify the national economy. Therefore, the place of residence undoubtedly plays an important role in the formation of citizens’ views on cryptocurrencies.

Major Barriers to People’s Trust

The fact that the majority of respondents trust crypto and believe that it will develop even more in ten years does not mean that such a position is unanimous. The survey showed that a significant number of investors still doubt the future of this type of asset.

When asked what the main barrier to trust in cryptocurrencies is, most investors pointed to insufficient regulation. Although at a certain stage of crypto development, deregulation was perceived as a positive aspect, today, this market is too significant for global finance to function chaotically.

At the moment, a number of states and intergovernmental institutions are already working on strengthening regulations in the cryptosphere. For example, not so long ago, the European Parliament introduced new rules for dealing with cryptocurrencies in terms of tracking transactions, obliging crypto providers to record information about the counterparties they interact with. Although this move did not meet with mass support among crypto holders, professional investors were more enthusiastic about it, considering this decision as one of the natural stages of crypto evolution.

The Takeaway

The survey conducted by Bitstamp does not contain expert analysis on the future of crypto. However, considering the peculiarities of this highly specific asset, the development of which mostly depends on supply and demand, the positive global sentiment toward crypto demonstrates that it is not going to fall off the economic agenda in the coming decade. On the contrary, it keeps on developing in different countries, international institutions are implementing new regulations, platforms that provide investors with crypto for future endeavors are being launched, and people are increasingly turning to cryptocurrencies as an investment and trading tool. All these factors indicate that in ten years, crypto will very likely be even more relevant than it is today.