The Future of Crypto: Predictions and Trends according to Bit2Me

The crypto space is known for being dynamic and fast-moving. Even though this can be seen as a negative, as it leads to high price volatility, it is also symptomatic of a nascent market with plenty of room for growth and improvement.

On the other hand, this dynamism also arouses the interest of investors, as periods of volatility and significant changes allow them to make large profits.

These last few years have been a clear example of how fast-changing the crypto universe is: 2022 started as a great year yet ended up being one of the worst in history, and 2023 began amid a market in recession but ended with an almost miraculous recovery.

However, the most important thing about 2023 was not this growth but what made it possible: the growing adoption among institutions and the steady work of those projects that remained standing after the 2022 crypto winter.

As you may have guessed, making predictions in such a changing market is not easy, but we are giving it a shot and showing you some predictions and trends that we foresee will mark 2024.

Bitcoin Halving Like You Have Never Seen Before

The Bitcoin halving is considered to be the most anticipated and important event of the year.

Every 210,000 blocks—roughly every four years—the Bitcoin block reward is cut in half. The next Bitcoin halving is expected to go from 6.25 BTC per block to 3.12 BTC.

This event always has a positive impact, as supply decreases in the face of ever-increasing demand. However, this year's halving could have never-before-seen consequences.

This time, supply is lower than ever, and the demand is much higher since institutions are now buying significant amounts of BTC to fuel their investment products, such as ETFs.

Some experts, such as Michael Saylor, claim that demand is up to 10 times higher than supply, something that has never happened before and could push the price of BTC above $100,000 per unit.

On the Verge of Widespread Adoption

Nowadays, very few people are unaware of what Bitcoin is or have never heard of it. However, in general, the crypto ecosystem remains pretty unknown.

As government institutions and large entities move into the crypto world, the trend for the next decade will be toward ever-increasing adoption.

In the coming years, we will see crypto payment gateways implemented on massive platforms, such as Amazon or eBay, and governments starting to implement digital currencies and new ways of using blockchain to carry out daily procedures with the administration.

On the other hand, all main challenges of blockchain technology, in terms of widespread adoption, lack of usability, and poor scalability, are being solved with Layer 2 implementation, interoperability systems, and intuitive and accessible user interfaces.

Advances in Crypto Regulation

As cryptocurrencies are gaining space in the world of finance and among large companies, governments have faced the need to create a regulatory framework.

In this regard, Europe is leading the current regulatory landscape with the MiCA Regulation, which entered into force in 2023 and will establish a regime of clear rules that will position the European Union as a crypto-friendly space where companies will have a clear set of laws designed to protect consumers and give companies room to continue to innovate.

Real-Life Applications

Beyond institutional uses, most users will start using cryptocurrencies when they offer real-life applications.

One of the top 2023 projects has been Worldcoin, which has soared more than 200% in recent weeks thanks to offering real-life applications and its direct connection to Artificial Intelligence, another trending technology.

The intersection between Artificial Intelligence and cryptocurrencies holds immense potential for creating new real-life applications that reinforce the adoption of both technologies.

For example, AI-based tokens could be used in predictive analytics, machine learning, and all kinds of uses in sectors such as health, finance, or logistics, to name a few.

Digital Identity and Decentralized Autonomous Organizations

Again, we take Worldcoin as an example, whose leading use case is to create a digital identity system capable of differentiating humans from AI.

Digital identity will be one of the leading use cases of blockchain. In this regard, there are already several projects with very different approaches that offer solutions to this problem.

That is also the case of Concordium, which offers an identity management solution, in this case focused on business use.

On the other hand, Decentralized Autonomous Organizations (DAOs) will be one of the main trends in blockchain. Large applications in the DeFi sector that seek true decentralization, such as Uniswap or Aave, are committed to this governance model.

Sustainability and Green Initiatives

One of the biggest criticisms Bitcoin receives is its high energy consumption.

Although it is still a myth, mining companies and most new crypto projects show a trend toward green initiatives and sustainability.

A prime example of this is Ethereum, which in 2023 switched from a mining-based Proof-of-Work consensus mechanism to a validation node-based Proof-of-Stake mechanism, reducing its electricity consumption by more than 99%.

Beyond blockchain consensus mechanisms, non-fungible tokens (NFTs) serve for carbon credit sales and carbon footprint management among industries worldwide.