2021 has been the year of cryptocurrencies. As we are at the end of this year, many people are excited to learn what 2022 will unfold for the crypto world.
So here we are!
Today, we'll see how strong the future of cryptocurrency is and predict what might happen to this digital money.
But before we time travel to 2022, let's take a look at the recap of 2021!
2021 - the 'Year of Cryptocurrency'
This year, cryptocurrencies have turned the market upside down by bringing new ideas and technologies to the payment space.
As for Bitcoin, 2021 was a hell of a year as it touched its highest price to almost $70,000 in November. Following Bitcoin, Ethereum, one of the most popular currencies, skyrocketed to its all-time high price.
There's a difference of opinion regarding cryptocurrencies in different countries. For example, China allows its exchanges to thrive but impose strict rules for miners while the USA government recently took a stance on cryptocurrencies.
There's been a lot of development in the crypto market this year. There's still a lot to be uncovered about this virtual currency. According to many crypto experts, it's complicated to predict the future in the crypto world as many all-time high prices were followed by big corrections.
Looking back to the past, we can say that the positive market sentiment of 2020 brought some important gains in 2021. The short-term market trend has fluctuated over time, but the long-term trend is still bullish.
There are many questions as we countdown to 2021. Hopefully, 2022 will answer those doubts that will set up a new course for cryptocurrencies and investors.
Let's get back to business and see what can happen to the crypto market in 2022!
Crypto Market Predictions for 2022
Although it's almost impossible to say what will happen to the cryptocurrencies in 2022, we've asked a few crypto specialists who have keen eyes and follows the crypto market closely and here's what they're expecting:
Power to People?
2021 has been bustling with new altcoins and crypto investors. Making memes and digital art has not been just a hobby anymore. NFTs have opened gates for common people to get into this digital world and earn loads of cash.
For all those investors and potential clients, the crypto market offers new solutions to handle their finance. Many people have found liberty from third-party intervention in cryptocurrency through DeFi.
Elite Cash aims to bring power back into people's hands by allowing them to have a hassle-free payment system.
Crossing the Chasm: A Wave Of Institutional Adoption
In 2021, many companies showed interest in blockchain technology and cryptocurrency.
Multinational companies like AT&T, PayPal, Microsoft, and Virgin Galactic have started accepting crypto payments. Moreover, there are a few who are going back and forth with crypto payments like Tesla and Amazon.
Considering how fast cryptos have been accepted, 2022 might see massive investment from all industry sectors.
Blockchain interoperability: the Importance of Cross-chain Technology
Cross-chain is one of the most popular topics discussed in 2021. It can be the ultimate solution for accelerating interoperability between blockchains.
To put into Layman's terms, this revolution allows transmission of value between several blockchains.
Most blockchain networks work on isolated systems. This isolation refrains people from getting the full benefits of digital ledger technology. Therefore, it is of paramount importance to make different blockchains communicate with each other.
Many top crypto companies have been working on this issue for a while. In 2022, let's hope that cross-blockchain compatibility lays the foundation of mass adoption for the exchange of value and information.
Will There be Clarity on Cryptocurrency Regulations?
Crypto regulation has been a burning topic of discussion throughout this year.
Different countries around the world have reacted differently towards cryptocurrencies. On the one hand, El Salvador has started to legalize Bitcoin transactions, while on the other, the Chinese government has announced a cryptocurrency ban.
However, governments like the USA and India have a wait-and-watch strategy. The USA government has stated that they have no intention to ban cryptocurrency. While the Indian government is planning to regulate this digital currency, the Cryptocurrency and Regulation of Official Digital Currency Bill was recently put on hold due to the farmer bill.
We can only hope that the sun of 2022 shines brighter for crypto regulations.
Will Central Bank Digital Currencies(CBDCs), Cash and Cryptocurrencies Coexist?
Many people consider CBDCs as a rival of cryptocurrencies.
Well, they are not!
CBDCs are a kind of digital money (you can also call it fiat money) that is centralized. According to reports, CBDC will run on the blockchain, which helps the servers function in real-time transactions.
Confused? Don't be!
CBDCs will work the same way cryptos do, but unlike cryptos, they will have a central authority to modify transactions (if needed).
What about cash, then?
Well, one of the oldest forms of paper money might get affected by the surge of cryptocurrencies and CBDCs.
Bitcoin ETF Approval
Let's talk about the debate for the last quarter of 2021!
In October, the first Bitcoin-linked Exchange-Traded Fund entered the New York Stock Exchange under the ticker BITO.
The BITO Bitcoin fund allows investors to purchase Bitcoin from traditional investment brokerages with which they may already have accounts.
The new Bitcoin ETF will not have any actual Bitcoins but will instead manage the price of Bitcoin utilizing futures contracts and other short-term financial mechanisms.
Crypto experts, who follow the crypto market trends, have indicated that the launch of Bitcoin ETF in the USA could trigger Bitcoin price and take it to the moon!
Even though you cannot foretell the future of cryptocurrencies, you can follow the market trends that giant investment companies set.
Cryptocurrency's future is on the fence. People who support crypto see unlimited potential, while critics see nothing but risk.
Whatever the future of crypto holds, there's a lot we haven't explored about this revolutionary digital currency. We can do nothing but hope that 2022 brings more value and recognition to cryptocurrencies that might change how we pay.
What do you say? Comment below and share your views on this.