According to ChatGPT, the most significant developments in crypto over the next decade will involve DeFi and the adoption of Bitcoin.

Although it all began in 2009 with the Bitcoin network launch, the whole cryptocurrency industry was established roughly a decade ago. In addition to imagining and speculating on what might occur within the next decade, several events within the past decade cannot be covered here.

1. Increased Popularity of Adoption

Initially, ChatGPT detailed a “greater mainstream adoption” within that timeframe, as it anticipates BTC and the altcoins becoming a significant part of the global financial network and used for transactions.

Indeed, this front has been advancements over the past few years. Visa and Mastercard, two industry titans, have partnered with cryptocurrency firms to enable millions of merchants to accept digital asset payments using their credit and debit cards.

Despite the setbacks in the industry over the past year, the head of crypto at Visa has recently reaffirmed the company’s optimistic stance on the subject, stating that certain digital assets “have the potential to play an important role in the payments ecosystem.”

On the other hand, Mastercard recently introduced a program designed to assist banks in launching cryptocurrency trading platforms.

 

2. Innovative Regulatory Structures

As adoption increases, the AI chatbot predicted that global watchdogs would want to monitor the industry’s development closely. This has been a popular topic in recent years, particularly in light of the aforementioned “setbacks” from the previous year, i.e. the collapse of Terra and FTX and the subsequent contagion.

Although in a negative light, the United States has been at the vanguard. Local regulators still need to establish appropriate regulations despite the presence of some of the largest crypto companies.

Simultaneously, the Securities and Exchange Commission has pursued multiple companies, accusing them of offering unregistered securities without specifying which digital assets constitute securities. The regulator also engages in legal disputes with some cryptocurrency titans, including Ripple and Grayscale.

In contrast, Singapore, Hong Kong, and the European Union are taking measures to regulate the industry. Recently, the EU authorized the MiCA legislation, which is expected to go into effect in 2024 for stablecoins and in 2025 for exchanges and other industry participants.

 

3. Enhanced Institutional Expenditures

We caught a glimpse of institutions entering the space a few years ago, immediately following the COVID-19 epidemic. Numerous prominent legacy investors, including Ben Miller, Stan Druckenmiller, and Paul Tudor Jones III, outlined their support for bitcoin and some altcoins while criticizing other investment options and the Federal Reserve’s monetary policy.

On the other hand, institutional investment vehicles such as the colossal insurance company MassMutual, One River Asset Manager, and even BlackRock (the world’s largest asset manager) have made certain investments or direct BTC purchases.

This even prompted the once-skeptical banking colossus JPMorgan to predict that other institutions may eventually follow suit. Last year, however, everything changed due to the meltdown that began with Terra and proceeded with FTX.

However, ChatGPT believes there is a high probability that the tide will turn once more, mainly if the previous two predictions come true.

 

4/5 – Interaction between Financial Services and Blockchain Adoption

We will combine these two due to their nature and similarity to the first item on this list. In addition to credit and debit card usage, ChatGPT asserted that cryptocurrencies and blockchain technology could be successfully integrated into other sections of the financial system.

This includes resolving large-scale transactions on blockchain networks and integrating insurance policies and real estate transactions on top of this technology.

However, according to the AI chatbot, finance is only one of many industries that could begin implementing blockchain technology more frequently. The technology could be implemented in various industries, including supply chain management, healthcare, and government services.

 

6. Sustainability

A few years ago, environmental, social, and governance (ESG) investing was all the rage when a handful of global agencies published frequent reports stating that bitcoin mining harms the environment. Several investors, including Elon Musk’s Tesla, withdrew from BTC positions and pressured miners to stop using coal fuels and switch to more sustainable and green energy sources; these efforts were successful.

This is also one of the reasons why Ethereum completed The Merge last year, allowing the second-largest blockchain to transition from the more energy-intensive proof of work to proof of stake.

As environmental concerns continue to develop, ChatGPT expects sustainability to play a significant role in the industry over the next decade. As a result, the chatbot predicted that ESG (and other) investors would favor cryptocurrencies that utilize more renewable energy.

 

7. DeFi Expansion

Decentralized finance is regarded as the counterpart to the world’s current centralized financial system. This implies that a third party is always involved in your transactions, agreements, etc.

Although DeFi has existed for years, its prominence exploded in 2020. The engagement, total value locked (TVL), and prices of this niche’s initiatives skyrocketed during the “DeFi summer.”

Nonetheless, this enormous and rapid adoption also revealed some of the industry’s problems, such as a lack of scalability, blatant scams, fraudulent projects, rug pulls, and security issues. In the past few years, rug pulls, and breaches have caused the loss of crypto worth billions.

Despite this, ChatGPT is confident that DeFi will overcome its problems, enhance the user experience, and become an integral part of the financial industry.

 

8. New technological advancements

Last but not least, the AI chatbot mentioned technological advancements. Ultimately, the Bitcoin network, along with numerous other initiatives that emerged in the 15 years that followed, is an innovation in and of itself.

Despite its flaws, proof of work lead to the development of proof of stake and its numerous variations. DeFi, NFTs, oracles, and other specialized protocols, such as DeFi, NFTs, and oracles, can be developed utilizing blockchain technology.

The next ten years could see a significant increase in the application of concepts that still need to be conceived.

“New cryptocurrencies may emerge with features and uses that we can’t currently anticipate. These could be driven by advances in technology or changing needs and conditions in society.”

However, the AI chatbot neglected to mention non-fungible tokens (NFTs) despite their explosive adoption growth in 2021. The question persists as to whether ChatGPT does not associate them with crypto or does not see a future for them.