Crypto in 2025 -
Will it be a sparkling paradise of riches
or a dystopian graveyard?
Is time running out for you to build
a fortune in just a few short years?
See, the problem is everyone tells you
either the extreme good or bad, all
depending on their personal interests.
Maybe they want you to buy a
coin because their heavily invested in it.
Or they want you to avoid another
one because that's in their interest.
So I thought it would be valuable to take an
impartial look at what we could expect by 2025.
Let's dust off the old Crystal ball
and start with a hard hitting question.
Let's imagine you've revved up your old
DeLorean and jumped forward in time.
What's your bank account looking like?
Are Fiat currencies dead?
I know it sounds a bit ridiculous, but in 2019,
three out of ten Americans didn't carry any cash, and
ATM usage has been dropping by 10% every year.
But will cryptos fill that void?
The opinion is divided sharply.
It's hard to imagine cash completely dying.
Less use, sure, but completely dying? I doubt it.
There will always be desire
for untrackable value exchange.
That's what cash does.
In order for crypto to fill that void, we'd
have to see major adoption of a stablecoin.
Perhaps Bitcoin would be the asset backing the new
crypto dollar that we all decide to get behind.
And that means Bitcoin's price would surely shoot up.
Either way, crypto tech isn't going to
disappear and neither is Fiat cash.
But that doesn't mean it can't
be fundamentally changed or limited.
What we're likely to see are more options.
Some will be government backed, others won't.
Some will be stable coins, others will be volatile.
People will buy and use the tokens
that make sense to them, and failures
will disappear into the blockchain graveyard, joining
thousands of others that preceded them.
If you think about it, it's just like
every other product or service ever invented.
When people want something, they buy it. They use it.
It's that simple.
The coins that people don't buy or use
will disappear and the fittest will survive.
This is a net win for the average person.
So what's the verdict on the
adoption of crypto in 2025?
Now a question we all want the answer to,
How much will Bitcoin be worth in 2025?
$10,000? A million dollars? $0.17?
Somewhere in between?
How can analysts confidently predict what the
price will be in three years time?
Well, I have a secret for you. They can't.
But that doesn't mean you need
to go in completely blind.
You can pick up insights and calculate the
fair value by looking at supply and demand,
competition and the cost of production.
Now, it's not as easy to do
this with crypto as it is for
coffee, oil, Twinkies or other essential commodities.
But it is possible. 2025 Bitcoin price predictions
are all over the place, from under $100,000
to up and over a million.
Looking at the price history of Bitcoin, it's easy to
see why most believe it'll only increase from here.
Yet this is no guarantee of the future.
The bank of England deputy governor said that
Bitcoin could theoretically or practically drop to zero.
Now that's a bit dramatic, but the real question is,
Will Dogecoin carry on making millionaires
or will its decline continue?
What started as a fairly lame joke about a dog
reached a market cap of $85 billion in May 2021.
But what does Dogecoin even do?
People use it to exchange money or
buy things, it's popular for online tipping.
A Dogecoin is basically a cute copy of Litecoin, which
is a spin off of Bitcoin with faster transactions.
And we see that a lot in crypto,
it's like copies of copies with small tweaks.
This brings us back to the idea of intrinsic value.
A leaked note from Goldman Sachs suggested that Ethereum
could overtake Bitcoin as the most valuable crypto because
it has the highest real use potential.
But does that mean it will be the top dog in 2025?
It's not impossible to imagine.
See, there's a difference between
value and production of value. Take gold.
It has value and utility, but
it doesn't produce you any cash.
Compare gold to something like real estate.
It both has value and can produce cash.
The fact that real estate can produce cash means we
can figure in the expected future return from that property
on top of the actual cost of the property, meaning
it's actually worth more than it costs.
If we translate this to crypto, Bitcoin is like gold.
It has value and utility.
Ethereum and other general-purpose blockchains
are more like real estate.
They have value, but they can also
be stakes for income or even further.
Businesses can be built on top that produce real cash.
Because of this, we may see a day where
an Ethereum type service could pass Bitcoin in total
market cap, and it could happen before 2025.
Back to the Crystal Ball.
Now time for a sensitive topic.
What could put crypto in its grave by 2025?
This is a fast moving industry.
Year over year, the space completely changes, both
with new advancements as well as bigger threats.
What if emerging technology was capable of smashing into
any crypto wallet and grabbing the money completely?
Bitcoin wouldn't be worth anything, or if all
tokens in the world were grabbed by some
angry government or by a giant swooping T-Rex.
Okay, those examples are a bit unbelievable.
There's no way a T-Rex could
do that with their tiny arms.
But the point is, the future
of cryptocurrency is extremely unpredictable.
But maybe there are individual parts
that we can safely predict.
Just to give a slightly more clear picture of
what the future might be, here's a good question to ask.
You could argue that crypto dipped
into the mainstream in 2021.
Prices went sky high.
Even my 84 year old grandpa holds Bitcoin now.
For any crypto to increase in price, you need people
actually holding and ideally using the coins, and that means
making it easier for people to buy and sell.
This is something that's thankfully gotten much easier in the
past years, but still has a long ways to go.
Purchasing the big cryptos has never been easier.
Just about every money related app offers some kind
of feature to do so, and more dedicated services.
Like a sponsor of mine, FTX has a ton more
additional features you can choose from if you're a trader,
if you'd like a wider selection of coins to invest into,
or if you're into NFTs or other digital assets.
In fact, if you want to try them out,
my link in the description will save
you an additional 10% on trading fees.
It's an awesome platform to try out.
But while purchasing has become very accessible, other aspects
not so much DeFi, for example, decentralized
finance, being your own bank.
If you want to harness any of the greatest
opportunities in crypto, you currently have to be very
well versed to get anything done without feeling like
you've just jumped into the fourth dimension.
And this is a big concern of mine.
I've talked to tons of developers in the
space and many seem to miss the point.
See, there's an issue when you're so deep into a
space, you work in it, your friends work in it.
It's all you think about.
You forget what it's like to be a beginner.
Because of this, many developers build things with
the advanced user in mind, not the average
everyday customer who just wants to start earning
extra interest on their money or get into
staking or whatever they might want to do.
I believe we'll continue to see a
move towards more and more accessibility.
However, the state of crypto in 2025 will
really rely on the effort behind this push.
It won't just happen automatically.
If companies start focusing more and more on the average
customer, we will see an explosion in the space as
long as regulations don't get in the way.
More on that in a minute.
But before that, let's sum up whether Usability
will be positive or negative by 2025.
Question: Are cryptocurrencies fairer than Fiat money?
I mean, that was the entire
goal when they started, right?
A global currency not controlled by
any one person or entity.
Or is it just a front for something else?
There have been all sorts of
controversy enabling criminal activity, scams and
rug poles, environmental concerns.
Bill Harris, he's the former CEO of PayPal.
He called Bitcoin the greatest scam in history.
However, PayPal now allows you to purchase Bitcoin.
So, you know, [Laughs]
We've seen this uphill battle for Bitcoin where
it starts in your mind as something that just feels like
it's got to be a scam, but then you warm to
it eventually, and then you probably buy it.
This is happening across the globe.
El Salvador even became the first country to accept Bitcoin
as legal tender, a huge move for the industry.
But that hasn't gone exactly to plan.
Dina Ponce might have a solid claim to being
the world's first coconut vendor to accept Bitcoin.
And while sales increased thanks to her acceptance of crypto,
she expected the value of Bitcoin to rise
as well, giving her even higher returns.
And that's part of the problem.
Everyone wants crypto to be some sort of miracle.
Bitcoin made it easier for Dina to sell coconuts,
but it can't turn them into solid gold.
The Central African Republic just made Bitcoin
legal tender, too, and that's one of
the poorest countries in the world.
So this is a great chance to
see what effect Bitcoin has, if any.
So can cryptos make the world better?
Because if they can, they will increase in value.
A major goal since the beginning has been to
reduce the size of the global unbanked population.
Will digital money mean no one is
left out of the financial system?
Or will cryptos just make the rich richer
and leave everyone else disappointed?
Take Caroline, she knows firsthand
how crypto has changed people's lives.
Her family used to send money from the
Dominican Republic to New York and sometimes paid
$100 just to make the transfer.
But in 2019, Caroline learned how to use the
cryptocurrency Zcash, and she can now move money
between the countries at next to no cost.
That's a wonderful example of crypto in action,
doing what we all hoped it would do.
There were 1.7 billion unbanked
adults in the world in 2017.
Can the blockchain help these people?
In many ways, yes.
This goes beyond payments.
There's an emerging industry aiming to solve other
issues as well, like business loans, decentralized insurance,
and, of course, money making opportunities.
All this sounds amazing, but why does Vitalik Buterin
worry so much about the future?
The cofounder of Ethereum has realized that
this is all a double edged sword.
The network has helped unbank people, but
he's concerned about the dystopian potential of
crypto, money laundering, tax evasion, hacking, and
enabling the rich to just get richer.
It's a good question.
Who has benefited more from the crypto boom in
the last few years, the rich or the poor?
An investment of $100 when Bitcoin was young
would have made you a millionaire today.
The chance to make massive profits
by 2025 is, of course, lower.
An investment of $100 right now could make maybe
$400 $500 by 2025, maybe more, maybe less.
It's still a great return, although perhaps not
as much as you may hope for.
Many people who have made big money were already rich
and could afford to throw some cash into a brand
new, completely risky space back when it was tiny.
I worry that the ground floor type opportunities
Are going away now that we're seeing big
venture capitalists behind nearly every anticipated token release.
But I don't want to make it sound like it's impossible.
It just takes more work now.
In order to make a massive
return by 2025, you'll absolutely need to
buckle down on research and monitor trends.
Now for the big one.
Are new regulations going to kill crypto by
2025, or will they make it better?
Governments all over the planet
have cryptocurrencies in their sites.
And this is a tricky balance because the
perfect regulation increases safety but doesn't slow innovation.
A push too far can cripple the tech.
In the US, a lot of
regulatory eyes are on stablecoins,
tokens pegged to the dollar.
The European Union is developing new
regulations to "protect its citizens".
And China's being China, banning
crypto every other month.
Then we have CBDCs, this term being thrown around a lot.
That's central bank digital currencies, a stablecoin that's
backed by a country.
The idea is that people would be able to
transact on the blockchain with more peace of mind.
But some people believe that this
is just another control tactic.
Analysts think we could see these digital
dollars in many major countries by 2025.
But could this tech actually kill Bitcoin,
or will it just encourage more of
us to own different types of cash?
On the surface, they go against many of
the blockchains principles that people hold dear.
The whole point is decentralization.
So a government owning it doesn't really work.
But having said that, A government issued digital
cash does add legitimacy to the crypto industry.
The average person will think, how bad could crypto
be if the government is dealing in it?
This could speed up the transition to other
cryptocurrencies by making them feel more normal.
The regulation also means fewer scams and rug pulls.
But again, this is a fine balance.
Regulations can go too far, strangling the
industry and causing prices to plummet.
We can actually gain some insights here
by looking back at the stock market.
Specifically the black Tuesday crash of 1929,
16 million shares were sold in a single day,
and this led us to the great depression.
Jobs were almost impossible to find in the aftermath,
families ripped apart and
garbage piled up on the streets.
After this, the securities exchange act brought
more regulation to the American stock market.
This meant there was less quick cash to
be made, but it also made it easier
for people to invest with confidence.
If crypto regulations are done well, this could be
a new controlled boom period for investing, as long
as the government doesn't overstep its bounds.
And if they do, there's only one
thing we can be sure of-