Guessing what’s next in the cryptosphere can be tricky due to its fast-changing nature. Rules and the convergence of nations to frame policies about crypto are already in the news, marking an exciting beginning to 2024.
The US Securities and Exchange Commission (SEC) green-lighted 11 bitcoin exchange-traded funds (ETFs) on January 10 and all the ETFs are up and running. This news is seen positively by the crypto world. But folks play it safe with their cheers. With hopes for clearer rules, they brace for a year full of important crypto policy updates. In this blog, we’ll share what we think will be the key trends in crypto in 2024.
What is crypto?
Think of crypto as an asset but in digital form. It’s different from regular money, but not that dissimilar. Just like we use rupees in India or dollars in the U.S. to buy things we desire, we use crypto too for a select service. But most use it as an investment tool, kind of like gold, to keep them safe while regular money’s value goes up and down.
But there’s one main difference between crypto and physical money. While governments control our cash, no central body governs crypto. Its life begins and ends in a digital ledger system called blockchain that keeps track of every crypto out there, free from any official intervention.
Crypto Regulations 2024
Worldwide regulators are stepping up efforts to set guidelines in the crypto market. This could lead to more regular and open laws over time. 2024 stands out as an expected timeframe for clearer rules across the world. These rules will provide a full structure for blockchain technology and digital currency.
These legislations aim to handle the societal and environmental threats crypto poses while promoting the development of trustworthy digital assets. Steps like these are vital for encouraging the broad acceptance of crypto technology.
Crypto Trends 2024
In 2023, amid changing regulations, three places stand out for crypto firms. Spurred by new rules, they’re headed to Paris, Dubai, and Hong Kong. Paris, especially, is drawing crypto businesses. They want to work under MiCA, but why? The French government is pushing to become a hub for these businesses, using MiCA’s passporting provisions to do it.
Moving to the Middle East, we find Dubai. It’s attracting both crypto and traditional financial businesses alike. Why? With the Virtual Assets Regulatory Authority (VARA), the world’s first crypto-specific supervisor, Dubai reassures these firms. They see a strong regulatory system in place, encouraging them to tap into the growing Middle Eastern and North African markets. Let’s move to Asia-Pacific (APAC), where Hong Kong stands out. They have clear regulations that drive responsible innovation.
Bitcoin’s fourth halving comes in 2024. A pivotal event, this halving will cut Bitcoin’s mining block reward from 6.25 BTC to 3.125 BTC. In simpler words, fewer new coins will be created. This event traditionally kicks off a new cycle for the crypto world. Throughout past halvings, Bitcoin value and digital assets have grown, sparking added excitement in the crypto scene.
By 2023, the U.S. had moved forward in making Bitcoin ETFs official. Lots of traditional investors are keen, drawn by the chance to put money in crypto. The participation of these giant asset management companies confirms that Bitcoin is a reliable solution for the wider world of finance.
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Crypto Adoption
Thanks to blockchain’s growing reliability, we’ll see a surge in its use. Services like smart contracts, dApps, DeFi, tokenized assets, and NFTs will be more common. The rise of stablecoins will continue. As blockchain gets more advanced, we predict more dApps in 2024. These dApps help avoid common problems with traditional systems, like downtime.
There’s an exciting future ahead for decentralized finance (DeFi). One big reason for DeFi’s fast growth is how easy and accessible it is. With a digital wallet, people can use lots of financial services. This skips the need for usual financial go-betweens and gives people more power over their money.
By 2024, we’ll see more assets become digital tokens on the blockchain. This process, called asset tokenization, has lots of potential. It allows people to own a fraction of an asset, making it easier for more people to have different kinds of assets.
Future development
Watch out for the merging of artificial intelligence (AI) and crypto. This blend is a key trend on the horizon. In the 2024 blockchain forecast, the fusion of AI and blockchain technology becomes vital. It evolves the way we do digital transactions, triggering changes in countless sectors. By 2024, we’ll see more teamwork between blockchain technology and Web 3.0. Fueled by decentralized systems and blockchain, the goal of Web 3.0 is to shift power from internet big shots to everyday users and content makers. The result will be a safer, more open, and more honest internet.
So far, this year looks like a key time for crypto tech, according to global experts. We expect a larger uptake of blockchain by businesses and governments. This is due to the growing influence of decentralized finance (DeFi), the expanding universe of crypto tokens, the blending of AI and crypto, the creation of a metaverse on the blockchain, a surge in policies, and better understanding due to education.
These emerging trends will shape the digital finance and tech world of tomorrow. They’ll offer both new chances and hurdles for businesses across all sectors. Here’s what to expect by 2024: a crypto world full of fresh ideas and change.
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