Published in cooperation between Bazoom and the Healdsburg Tribune
Cryptocurrency is notoriously volatile. Many experts are predicting new price highs over the coming years, while others remain cautious.
Those who invested in cryptocurrencies 15 years ago, particularly Bitcoin, and kept hold of them, will now likely be millionaires. Yet the ship has not sailed, and like any investment, it is believed there is still money in cryptocurrency. However, there is also a theory that it may have hit its zenith. So, which of these is most likely to be true?
Cryptocurrency in 2025
Cryptocurrency has had a volatile year in the short term. The late months of 2024 caused a huge spike in its price, due to several factors, but mainly the change to a new, crypto-friendly government in the United States. This resulted in an all-time price high. Other macroeconomic factors then caused cryptocurrency to fall somewhat. However, recently it surged again to $106,000. This takes Bitcoins market cap to above $2.04 trillion.
In the long term, this shows a gradual upward trend for cryptocurrency. There are those who are predicting it may overtake gold as a form of stable investment and in its price. However, others believe this is simply bullish sentiment. The only thing that can not be denied is that further institutional adoption is causing its price to rise.
Prominent voices are predicting big things for crypto in 2025, believing it to be a pivotal year. At the time of this writing, analysts at JPMorgan have stated that cryptocurrency will outperform gold over the rest of the year. There are also investors such as American venture capital investor Tim Draper who have said for some time that crypto will hit $250,000 by the end of the year. More conservative estimates have put it at $200,000, according to Anthony Scaramucci of SkyBridge Capital.
Changes That Could Push This Price Up
The years 2025 and 2026 could see some significant changes, which in the long term could push up the price of Bitcoin and other cryptocurrencies. The first of these will be advances in blockchain dispute resolution.
One problem with decentralization is that no one has the governance to resolve issues. This is critical if smart contracts are to be employed in serious financial applications. With this, reduced cost, faster resolution times and a general increased level of trust should prevail.
This will also be beneficial for the entertainment industry. The most popular crypto casino operators will be able to use this, as well as decentralized apps. These are sites that do not just accept cryptocurrency as a payment, but are also built on the blockchain. As a result, these casinos already get the benefits this brings. This could help iron out any issues that may occur with payments. Many already have great support, often centred around browsers like MetaMask. However, this could also help implement the many bonuses and improve the quality of the game on the network.
In turn, this could lead to more institutional adoption that helps it along. If it proves to be a store of value that is separate from the economic conditions of a country or trading block, as it has shown this year, it will go even further. Many believe it may even surpass the $1 million mark.
Quantum Computing and Cryptocurrency
The future is not all bright, however, and there are those who have warned of the dangers of it from one particular technology: qQuantum computing.
This is the storing of information on subatomic particles. Instead of using the standard binary code computers have worked on for some time, consisting of 0 and 1, it uses qubits. These can be both 0 and 1 at the same time. This is known as a superposition, and it allows for the exploration of possible solutions to a problem much faster.
As an example, Google is supposed to have a new chip named Willow. It can solve a problem in five minutes that would take the best supercomputers in the world years and years to calculate. This presents a world of possibility, from improvement in medical science to logistics. When integrated with blockchain technology, this could be astounding, including faster transactions, better security and better programmes and apps.
However, it also threatens the world of cryptocurrency somewhat. The clue is in the title: Crypto and the ability to unlock a complex puzzle to create a coin. This is known as mining. If quantum computers can do this, mining would be done instantly. This could flood the markets, devaluing cryptocurrencies and making them worthless.
Another possibility is that wallets become easier to hack into. Paolo Ardoino, the CEO of Tether, has already predicted that it could open inactive Bitcoin wallets. Not only will this increase security threats, but it is another element that could swamp the market and bring the price down.
Thus, anyone investing in crypto needs to keep an eye on the markets at all times. However, this has always been the case. Volatility is now the name of the game when it comes to cryptocurrencies. If you can embrace this, then long-term, the position on cryptocurrencies looks promising.
