The future of cryptocurrency: Expert insights and predictions for 2024

6 cryptocurrency predictions and potential trends in 2024

It’s truly incredible to consider how quickly the entire world has gone digital. Just think of how many people are now navigating the virtual landscape and investing in digital assets. The increasing popularity of cryptocurrency, a form of digital currency secured by cryptography and existing on decentralised networks using blockchain technology, has been a key strand of this evolution.

In recent years, online businesses, digital investors, mobile gamers, experienced traders and even mainstream consumers have been engaged in various forms of crypto transactions. As such, it’s probably safe to say that you can expect the continued widespread adoption of cryptocurrencies this year and into the future. A recent Statista report on the worldwide cryptocurrency market shows it is estimated to hit $51.5 billion (USD) in 2024 and $71.7 billion by 2028, potentially expanding at a compound annual growth rate (CAGR) of 8.62%.

Source: Statista

The potential opportunities in the crypto world are clear to see, and you can see why more and more people are venturing into this space. However, whether you’re an online seller accepting crypto payments or a digital investor conducting business in the crypto market, it’s important to understand, identify and avoid cybercrime and crypto scams. 

Before launching any major crypto investments, it’s a good idea to explore the existing market conditions to identify the potential cryptocurrency trends we can expect this year:

1. The mainstream adoption of crypto

One of the key attractions of cryptocurrencies is their ability to operate outside the confines of traditional finance via decentralised networks. Cryptocurrency and blockchain technology have given organisations in various industries such as healthcare, media, and banking the opportunity to function in a divergent capacity. Many experts believe blockchain technology will continue to positively disrupt many industries, including the financial sector and that we’ll also see the growing adoption of digital currencies within the mainstream. Some financial institutions have already begun offering and accepting digital assets, while traditional investors have become more open to investing in the crypto market.

As early as 2021, the credit card giant Mastercard announced its plan to support certain cryptocurrencies directly on its network. Citi also considered launching crypto services after a surge in client demand. In fact, it’s been stated that nearly 90% of the world’s central banks have planned to introduce digital currencies. Furthermore, many businesses are making innovations in their respective industries, such as leveraging cryptographic authentication in the financial segment and building new payment rails in retail and e-commerce. Be sure to expect more of these innovations around digital currencies in various sectors in the next few years.

2. The relentless rise of Bitcoin

Bitcoin (BTC) is the original cryptocurrency. Introduced to the world back in 2009, it is now the most popular crypto across the globe. From what I can see, there’s no denying its continued rise. The emergence of the Ordinals protocol, the Bitcoin halving, and the recent spot Bitcoin ETF approvals in the U.S. all paint a picture of a progressive and thriving Bitcoin this year and into the future. 

Traditional investments in stocks, bonds, or real estate investment trusts (REITs) will always be a constant. Some investors may even look for the best CD rates for their savings accounts, while others capitalise on what banks offer for their accounts. Nonetheless, Bitcoin investment offers an alternative option with intriguingly high growth potential that even more mainstream and institutional investors are finding increasingly difficult to ignore. As we’ve seen in the past, Bitcoin halving events have influenced the Bitcoin price and the upcoming 2024 halving could also have a significant impact on the wider cryptocurrency industry. As adoption spreads, regulatory clarity emerges, and new Bitcoin innovations emerge, 2024 could prove to be another stellar year for the original king of crypto. 

3. The focus on blockchain interoperability

Blockchain technology is a distributed ledger executed through a distinct network of computers with a set of connected blocks of data on a digital ledger. Each block comprises a set of transactions independently verified by a validator on the network. Blockchain is notable for its encryption and bringing out the best security features. 

However, blockchain interoperability has been a major concern in the industry since this decentralised technology doesn’t operate in traditional networks without intermediaries. This is because it isn’t interconnected with the established systems, databases, and other data sources. As such, key players in the industry now focus on building an interconnected blockchain ecosystem. The goal here now is to maximise different blockchain systems to share and exchange data, messages, and digital assets more efficiently and seamlessly. 

Stephen Baldwin, Founder of Assisted Living, highlights the focus on blockchain interoperability in 2024. 

“Key players will continue to create cross-chain solutions and implement interoperability protocols in blockchain. Doing so will guarantee the smooth transfer of digital assets via different networks. As such, expect the crypto space to expand with a more interconnected digital ecosystem. This, without putting data privacy and network security at an utter risk!” 

This year, industry players are expected to establish and further expand the blockchain ecosystem. This will surely pave the way for the wider acceptance and adoption of digital currencies in the years to come.

4. The implementation of the CBDCs

Quite recently, the creation of the Central Bank Digital Currencies (CBDCs) has been a topmost consideration among central banks. It’s important to note that only China has banned crypto exchanges in its country, which eventually led to the establishment of its own CBDC. But in 2024, several countries may follow suit…

The International Monetary Fund (IMF) cites that many financial authorities in the world are seeking guidance in pursuing central bank money. Some countries might not currently need to establish a CBDC in their respective jurisdictions. However, many of them have started exploring this option in case they need to set this in place in the near future. Though the establishment of CBDCs may push decentralisation aside, this could pave the way and accelerate the worldwide adoption of digital assets. Moreover, it can be seen as a way to improve crypto transactions by reducing the possibility of fraud in the market. 

5. The convergence of TradFi and DeFi 

Currently, there's a clear line drawn between traditional finance (TradFi) and decentralised finance (DeFi). The financial industry has its long-established systems. However, with the rise of online banking and the use of digital assets, the industry is moving towards complete digitalisation. 

Meanwhile, blockchain technology has shown much potential in enhancing security, igniting scalability, and improving user experience (UX). Still, the DeFi segment has yet to mature in terms of digital infrastructure and interoperability. 

Anthony Martin, Founder and CEO of Choice Mutual, sees the inevitable convergence of TradFi and DeFi.

"TradFi can capitalise on blockchain technology to improve the financial systems and address some of the global economic challenges. On the flip side, DeFi can adopt the best practices in the traditional finance system that has brought it global stability… The two industries might merge in time as we're all heading towards a digital future."

6. The evolution of the regulatory landscape

The worldwide acceptance of digital currencies calls for the implementation of applicable laws and regulations in the industry. On the surface, they may seem to defeat the purpose of decentralisation in cryptocurrencies, but the legalities and policies could improve the crypto market. It can even go as far as fostering greater adoption and acceptance among the general public. Ultimately, regulation in crypto exchanges, mining, and transactions can improve the overarching crypto ecosystem.

Jim Pendergast, Senior Vice President at altLINE Sobanco, expects the evolution of the regulatory landscape in the cryptocurrency market this year. 

“Each country will implement specific regulations differently based on their financial situations, economic conditions, social landscapes, and political atmosphere. If anything, these laws and regulations will define, shape, and improve the crypto market.” 

Preparing for the future of cryptocurrency

The future of cryptocurrency is bright and promising as the world has become increasingly digital. As we’ve explored, all signs seem to point toward the continued expansion and integration of digital assets into mainstream finance and technology. Decentralised technologies appear ready for long-term impact alongside advancements in finance, Web3, and the global digital transformation.

Although the crypto landscape still carries some risks for investors, maturing frameworks around digital currencies can help people make more informed decisions. For crypto-curious newcomers, these developments will help break down barriers and facilitate a more seamless entry into the market. However, key developments to anticipate and consider are increased regulatory clarity and increased accessibility.

In 2024, we will likely see cryptocurrencies and blockchain technology gain greater adoption from governments, banks, businesses, and consumers. This year has the potential to bring greater stability, transparency, and access to the emerging economic systems bolstered by cryptocurrency.

Shawn Plummer is CEO at The Annuity Expert. He has been a licenced financial professional focusing on annuities and insurance for more than a decade. Shawn’s former role was training financial advisers, including for a Fortune Global 500 insurance company and he has been featured in Time magazine, Yahoo! Finance, Entrepreneur and Bloomberg.

Disclaimer

This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets. This article is for general purposes of information only and no representation or warranty, either expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this article or opinions contained herein. Investing carries risks. Make sure to conduct your own research before making any investment.