The future of cryptocurrency—some challenges As we gaze into our crypto ball, let’s see what the future of cryptocurrency has in store for traders. With many experts estimating that the 2020 COVID-19 pandemic has hastened the decline of cash by almost five years, few are asking whether digital currencies will actually succeed (they have already). Instead, it’s a matter of when they’ll go mainstream. Nevertheless, there are some challenges ahead. Perceptions A significant generational divide exists when it comes to adoption rates of cryptocurrencies. Older generations are typically more sceptical of crypto’s long-term viability, expressing fears about volatile financial bubbles as well as uncertainty over how cryptocurrencies actually work.

1. The Future of Cryptocurrency
If recent headlines are any indication, then the future of cryptocurrency is a very promising
one.
Elon Musk, founder of SpaceX, recently announced that his company Tesla invested $1.5
billion in bitcoin and plans to start accepting the currency as payment.
Users of Apple Pay, Google Pay and Samsung Pay can now make transactions with
cryptocurrency using BitPay.
Mastercard has indicated that it will begin supporting select cryptocurrencies on its payment
network, while PayPal already allows its users to buy, sell and hold cryptocurrency.
Social media giant Facebook continues to work on its blockchain-based payment system and
cryptocurrency known as “Diem” (it was previously called “Libra”).
The oldest bank in the United States, Bank of New York Mellon, announced recently that it
will begin financing bitcoin and other digital currencies.
One of the oldest insurance companies in the US, Massachusetts Mutual Life Insurance,
bought $100 million into bitcoin in December 2020.
Germany’s biggest bank, Deutsche Bank, has already created a Deutsche Bank Digital Asset
Custody prototype, “a fully integrated custody platform for institutional clients and their
digital assets, providing seamless connectivity to the broader cryptocurrency ecosystem.”
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Coming of age: behind the success of cryptocurrency
In a word: demand. In the absence of demand, cryptocurrencies, or any other asset class, would
have little actual value.
But that doesn’t explain what is driving demand. How has the growing popularity of crypto
translated into actual success and what are the implications for the future of cryptocurrency? After
all, just because something is popular doesn’t mean that it’s financially profitable or successful.
When Uber, for example, went public in 2009, it was valued at $8.1 billion and had 91 million users,
but admitted that it might never turn a profit. Popularity without profitability is not exactly a success
story.
However, cryptocurrencies are different. Early crypto enthusiasts were drawn to these digital
currencies and the blockchain tech behind them for a variety of reasons, including independence
from the international banking system, greater anonymity and increased profitability. From
borderless payments and decentralized finance (“DeFi”) to machine-to-machine transactions,
cryptocurrencies have truly become a global phenomenon, which is why so much ink has been

2. spilled by writers and bloggers about the cryptocurrency revolution. And with mainstream traders
and institutions increasingly eyeing digital assets, there can be little doubt that cryptocurrencies
have proven themselves to be both popular and successful. Below we take a look at some of the
reasons why.
Decentralization, ease of use and lower costs
Having celebrated twelve years of existence recently, bitcoin has demonstrated its staying power.
The first offering of bitcoin in 2009 also happened to follow on the heels of the 2007 –2008 global
financial crisis in which years of financial deregulation permitted banks and other investment
institutions to speculate on derivatives backed by mortgages of questionable value. When the bubble
finally burst, financial institutions were left with trillions of dollars of near-worthless investments in
subprime mortgages, with scores of people losing their jobs, savings or homes (and in some cases all
three). The financial system had failed.
Independent of centralized banking, and therefore neither subject to their regulations nor the
problems ensuing from deregulation, cryptocurrencies offered an attractive alternative to the
shortcomings of the existing financial system. Enabled by blockchain technology, a public ledger of
past valid transactions, cryptocurrency such as bitcoin could be traded safely and securely, often
without the burden of expensive transaction fees. In addition, rather than any one nation,
government or monetary system controlling the proverbial purse strings, decentralization meant
that cryptocurrencies were self-regulated and self-governed, allowing for novel ways of carrying out
transactions efficiently and with high levels of transparency and accountability.
Fintech, disruptive technology and digital assets
It might seem like a self-evident point, but it’s one worth mentioning. Digital platforms have had a
transformative impact on human relationships—among customers, workers, employers and traders.
The cryptocurrency revolution about which many people speak would be simply impossible without
the digital revolution of the past few decades.
By combining finance and technology, the world of fintech has had a disruptive impact, shaking up
the old way of doing things by injecting it with cutting-edge technology. Cryptocurrencies
themselves are digital assets, or a digital record or representation of value stored and tracked in a
public ledger called a blockchain. And the advantages of blockchain are numerous: dependability
and trustworthiness, increased speed, reduced costs and reduced paperwork through tokenization,
among other things.
One striking knock-on effect has been the rise of fintech startups focusing on different aspects of the
cryptocurrency ecosystem, from wallets for storing digital assets along with exchanges for swapping
and trading them to companies such as offer traders opportunities to create their own crypto trading
bots. As the ecosystem expands, so too does the popularity of cryptocurrencies. Crucially, popularity
has even translated into profitability.
In the next section, we’ll consider some of the challenges that cryptocurrencies face as they continue
their ascendancy.
The future of cryptocurrency—some challenges
As we gaze into our crypto ball, let’s see what the future of cryptocurrency has in store for traders.
With many experts estimating that the 2020 COVID-19 pandemic has hastened the decline of cash by
almost five years, few are asking whether digital currencies will actually succeed (they have

3. already). Instead, it’s a matter of when they’ll go mainstream. Nevertheless, there are some
challenges ahead.
Perceptions
A significant generational divide exists when it comes to adoption rates of cryptocurrencies. Older
generations are typically more sceptical of crypto’s long-term viability, expressing fears about
volatile financial bubbles as well as uncertainty over how cryptocurrencies actually work.
Conversely, recent research by Deutsche Bank concluded the following: “More than a third of
millennials believe that cryptocurrencies will soon replace cash and credit/debit cards. Our exclusive
survey of over 3,700 people in the United States, United Kingdom, Germany, France, Italy and Spain
found that they envision a purely digital currency.”
Volatility
Crypto can be temperamental. Among asset classes, bitcoin is particularly volatile. Between January
2018–June 2019, the price of bitcoin fluctuated an average of 2.67% each day. During that period,
traders could take advantage of daily price upswings as high as 16% and downswings of more than
18%. Compared to gold and fiat currencies, this volatility was more than six times higher. When it
was introduced in 2009, bitcoin had zero value. A little over twelve years later, the price of bitcoin
broke $50,000, marking a year-to-date increase of 74%. Consequently, many now talk about bitcoin
as a hedge against inflation and uncertainty related to the purchasing power of the U.S. dollar.
Whether this volatility can be tamed remains an open question.
Regulation
As Dirk G. Baur and Thomas Dimpfl argue in their article “The volatility of Bitcoin and its role as a
medium of exchange and a store of value,” the regulation of cryptocurrencies varies from country to
country. In some countries such as Bolivia, Morocco and Nepal, bitcoin is banned, while elsewhere
there are no limits on its use (e.g. EU, USA). In Bahrain and Qatar, citizens can use bitcoin
internationally but not domestically. There are also tax implications to consider, too (e.g. bitcoin
transactions are exempt from VAT, but any gains are subject to tax).
Will crypto ever replace fiat money?
In October 2013, the world’s first bitcoin ATM was installed in Vancouver, Canada. A mere two
months later, Europe received its first bitcoin ATM in Bratislava. More recently, the owner of two
NYC bars is looking to carry out the first cryptocurrency-only restaurant sale in the United States. A
Switzerland-based consulting firm connects buyers and sellers interested in purchasing residential
real estate with bitcoin.

4. The list of things that can be bought and sold with cryptocurrency seems endless: basketball tickets,
fast food, luxury watches, mattresses, beer, coffee, taxis, airline tickets and, yes, even a Tesla. Are
we witnessing the demise of fiat money? Is cash still king?
It all depends on whom you ask. One piece of news in particular caught our eye. In their “Imagine
2030” report, Deutsche Bank identifies cryptocurrencies as additions rather than substitutions to the
global inventory of money, but feels that this could change by the end of the decade. As Marion
Laboure describes in her contribution “Cryptocurrencies: the 21st century cash,” “nearly two thirds
of consumers prefer dematerialised to cash payments and a third are concerned by anonymity.
These are the two things that cryptocurrencies do best.” According to Laboure, if cryptocurrencies
can overcome three main hurdles in the future (which we’ll explore in the next section), then the
future of cash is at risk: “As we look to the decade ahead, it would not be surprising if a new and
mainstream cryptocurrency were to unexpectedly emerge.”
Elsewhere, a January 2021 report on the future of cryptocurrencies by EU Startups foresees the
following:
Looking at the different sectors, in the future, trading and e-commerce and retail segments are
expected to hold a major market share when it comes to cryptocurrencies. The penetration of digital
currencies in digital payments is expected to affect the cross-border transfers, and digital currencies
have the potential to become the main vehicle for e-payment if not the only one. This will make
digital payment services – powered by blockchain technology – the next great upheaval in global e-
commerce growth. Financial institutions are also directed to blockchain technologies, which is
expected to drive the market in upcoming years. The financial ecosystem will likely undergo massive
disruption.
Our take? There’s been a lot of noise for years about the future of cryptocurrency and whether or

5. not crypto will replace fiat money, with many compelling arguments on both sides of the bitcoin (see
what we did there?). While it’s impossible to predict anything with certainty, few will deny that
cryptocurrency has been going from strength to strength as it moves closer and closer to
mainstream accessibility and acceptability.
Should you invest in cryptocurrencies?
Given their growing scalability, increasing profitability and attractiveness to traders both big and
small, cryptocurrencies are here to stay. At this point, it’s less of a question of whether you should
start trading them, and more a matter of why you haven’t done so already.
As traders, we adopt, but must also adapt, which means embracing new types of digital assets as
well as cutting-edge digital tools to maximize our strategic goals. To trade profitably, you need all
the help you can get, and one important and underappreciated technology that should be in every
trader’s toolkit is automated trading powered by cryptocurrency trading bots. Some of the
advantages of using crypto trading bots to automate trading include:
emotionless trading without errors
higher trading speeds
backtesting and paper trading
risk diversification
consistent trading discipline.
Think of crypto trading bots as the Usain Bolt of crypto trading—unmatchable speed, reliability and
efficiency. Since they can communicate directly with crypto exchanges and place orders
automatically based on parameters that you define and control, crypto trading bots are lightning
quick. They also run like clockwork, ensuring consistent trading discipline and optimizing long-term
performance, which translates into emotionless trading and fewer errors. By running multiple
trading bots, you can even diversify your portfolio, reducing your exposure and risk as a result. But
before you enter the race, you’ll need a few warm-up sprints, which is where backtesting and paper
trading come into play.
At Trality, we provide you with the state-of-the-art tools you need to succeed, from bot creation and
backtesting to trade execution. Backtesting is at the heart of every bot creation iteration. That’s why
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Algorithmic trading is something of an open secret. While institutional traders on Wall Street have
been using algorithmic trading for decades, private traders have been slow to adopt this
groundbreaking technology due to its perceived costs and complexity. Just like cryptocurrency,
though, crypto trading bots can level the playing field, giving you a leg up across crypto markets.
Automation is the future
Automation is the future, and this includes private investments through the use of algorithmic
trading bots. But automated trading doesn’t mean that you’ll strike it rich automatically, which is
why you need to be on your guard against solutions that try to hook their users in through flashy
marketing promises, all while offering generic black box signals.
How is Trality different?

6. Trality is a platform for anybody who wants to create highly-intricate, super creative algorithms
within an educational, community-driven infrastructure that promotes learning and development as
a trader.
For those who don't know how to code advanced trading algorithms, we’ve developed our Rule
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Its graphical user interface lets you build your trading bot’s logic by simply dragging and dropping
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In fact, in our comprehensive article “Crypto Trading Bots: The Ultimate Beginner’s Guide,” we first
cover the basics (e.g. what they are, how they work, and the benefits of algorithmic trading) and
then offer a step-by-step guide to creating your own bot with from registration and our
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