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The year is 2027. It is a time of great innovation and technological progress, but also a time of chaos. What will the crypto market look like in 2027? (For those unfamiliar, that’s a line from the 2011 video game Deus Ex.)
Long-term predictions are notoriously difficult to make, but they are good thought experiments. One year is too short for fundamental changes, but five years is just enough to change everything.
These are the most unexpected and outrageous events that could happen in the next five years.
1. The metaverse will not rise
The metaverse is a hot topic, but most people don’t even have the slightest idea of what it actually entails. The metaverse is a holistic virtual world that exists continuously (without pauses or resets), operates in real time, can accommodate any number of users, has its own economy, is created by the participants themselves and is characterized by unprecedented interoperability. A variety of applications could (in theory) be integrated into the metaverse, including games, video conferencing applications, driver’s license services – anything.
This definition makes it clear that the metaverse is not such a new phenomenon. Games and social networks that include most of the features mentioned above have been around for quite some time. Admittedly, interoperability is an issue that needs to be addressed seriously. It would have been a very useful feature to be able to easily transfer digital assets between games – or a digital identity – without being tied to a specific platform.
But the metaverse will never meet every need. There is no reason at all to include some services in the metaverse. Some services will remain isolated due to their operators’ unwillingness to relinquish control over them.
The “metaverse” is going to happen, but I don’t think the existing corporate efforts to intentionally create the metaverse are going anywhere. https://t.co/tVUfq4CWmP
— vitalik.eth (@VitalikButerin) July 30, 2022
And then there is the technical aspect to consider. The cyberpunk culture of the 1980s and 1990s argued that the metaverse meant total immersion. Such immersion is now only possible with the use of virtual reality glasses. VR hardware gets better every year, but it’s not what we expected. VR remains a niche phenomenon, even among hardcore gamers. The vast majority of ordinary people will never put on such glasses to call their grandmother or sell cryptocurrencies on an exchange.
True immersion requires a technological breakthrough such as smart contact lenses or Neuralink. It is highly unlikely that these technologies will be widely used in five years.
2. Wallets are becoming “super apps”
An active user of decentralized finance (DeFi) today has to deal with dozens of protocols. Wallets, interfaces, exchanges, bridges, loan protocols – there are hundreds of them and they are growing daily. Having to live with such a range of technologies is inconvenient even for advanced users. As for the prospects of mass adoption, such a turn of events is all the more unacceptable.
It is ideal for the ordinary user if a maximum number of services can be accessed via a limited number of universal applications. The optimal choice is when they are integrated directly into their wallet. Store, exchange, transfer to other networks, deploy – why visit dozens of different sites to access such services when all the necessary operations can be performed using a single interface?
Users don’t care which exchange or bridge they use. They are only concerned about security, speed and low rates. A significant number of DeFi protocols will eventually turn into backends suitable for popular wallets and interfaces.
3. Bitcoin becomes a unit of account comparable to the US dollar or euro
Money has three main roles: it functions as a means of payment, as a store of value and as a unit of account. Many cryptocurrencies, mainly stablecoins, are used as a means of payment. Bitcoin (BTC) and – to a much lesser extent – Ether (ETH) are used as a store of value among cryptocurrencies. But the US dollar remains the most important unit of account in the world. Everything is valued in dollars, including Bitcoin.
The real victory for sound money will be announced when cryptocurrencies take over the role of unit of account. Bitcoin is currently the prime candidate for this role. Such a victory will mean a major mental shift.
Wheat up 43% in the first 5 months of this year
Wet Gas 155% since Jan, +10% today
Let’s see how long the ‘consumer stays strong’ as this cuts out what little savings they have left and the debt piles up
Fight inflation with inflation, just print more lol pic.twitter.com/b19becqa2x
— Pentoshi (leads cattle to butcher) (@Pentosh1) June 6, 2022
What needs to happen in the next five years to make this possible?
A sharp drop in confidence in the US dollar and euro is a prerequisite for cryptocurrencies to take on the role of basic unit of account. Western authorities have already done much to undermine that trust by printing trillions of dollars in fiat money, which could cause abnormally high inflation, freeze hundreds of billions of a sovereign country’s reserves, and so on. This may just be the beginning.
What if actual inflation gets much worse than expected? What if the economic crisis continues? What if a new epidemic breaks out? What if the conflict in Ukraine spills over into neighboring countries? These are all feasible scenarios. Some are extreme, of course, but they are possible.
4. At least half of the top 50 cryptocurrencies will see their status drop
There is a good chance that the list of top cryptocurrencies will change radically. Real zombies like Ethereum Classic (ETC) will be ousted from the list, and projects that now seem to occupy unshakable positions will not only be dethroned, but could disappear altogether.
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Some stablecoins will sink for sure. New ones will take their place. Cardano (ADA) will slide down the list to officially become a living corpse. The project is progressing very slowly. Developers not only don’t see this as problematic, they even seem to see it as an advantage.
5. The crypto market will fragment along geographic lines
Cryptocurrencies are global by default, but they are not invulnerable to the influence of individual states. The state always has an edge and an extra trick up its sleeve. A number of territories (the US, European Union, China, India, Russia, etc.) have already introduced or are threatening to introduce strict regulation of cryptocurrencies.
The factor of international competition is superimposed on internal state motivations. When Russia was heavily sanctioned, some crypto projects started restricting Russian users from accessing their services or even blocking their funds. This scenario may recur in the future with regard to China.
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It’s not hard to imagine a future where parts of the crypto market will work in favor of some countries while closing to others. We already live in such a future, at least to some extent.
The views expressed are those of the author only and do not necessarily reflect the views of TUSEN. This article is for general information purposes only and is not intended and should not be construed as legal or investment advice.
What will cryptocurrency look like in 2027? Here are 5 predictions – The US Express News
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