This article comes fromForbesThis article comes from
, the original author: Sean Stein Smith, compiled by Odaily translator Katie Ku.
Cryptocurrency prices continued to grow steadily in the second half of 2020, which some are calling skyrocketing in the face of ongoing global political and economic instability. This is indeed good news for cryptocurrency investors and those who have been convinced that cryptocurrency will be in a long-term bull market. But price increases could also be just a bubble, with unintended consequences.
The crypto winter may indeed be coming to an end, perhaps already, but what does continued price growth mean for crypto assets in the medium and long term? Lets read it together.
secondary title
Cryptocurrency prices are volatile
Bitcoin may not be as volatile as other financial instruments. But after all, Bitcoin is also a financial tool, which still worries many consumers and potential users.
secondary title
The rise and market valuation of stablecoins should not be ignored, and don’t discount it for not being a “real” cryptocurrency. Stablecoins are an important bridge between cryptocurrency enthusiasts and the vast number of outsiders. The ability to reduce price volatility, be transactional or redeem the underlying assets, and the recent OCC certification (Currency Audit) regulatory measures for these assets highlight the viability of stablecoins.
secondary title
Cryptocurrency Use CasesIn short, the future of cryptocurrencies may be less about a “winner takes all” situation and more dependent on use cases in differentiated markets.
secondary title
Large-scale landing is coming
Like any other business or agreement, compromises and fit-for-purpose are required, and decentralized cryptocurrencies will always play an important role.
secondary title
Cryptocurrency security will be a top priorityThe future development of finance and payment will be greatly affected by blockchain and encrypted assets, and the regulatory framework needs to keep up.
In particular, even if stablecoins and other cryptocurrencies become widely accepted, the need for security tools, other anti-theft mechanisms, and unethical behavior will be important topics of discussion. In September 2020, the OCC (Currency Audit) and the US Securities and Exchange Commission (SEC) have already taken action on this. To solve the persistent problems, stricter certificates and improved policies are necessary.
Bitcoin is still a popular cryptocurrency, and any fluctuations can cause huge waves in the market, which has also attracted individuals and institutions to start paying attention to encrypted assets. To be fully developed and refined, all parties must recognize the impact that ongoing price volatility has on the cryptocurrency industry.Price volatility and cryptocurrencies have consistently topped the list of financial buzzwords so far, but the potential impact is far broader than short-term trading.
