A Look What 2022 Might Have In Store For Cryptocurrencies
Cryptocurrencies went on a rollercoaster ride in 2021. Investors are rightfully wondering what the year ahead might hold for crypto. Though the stock market is likely to be somewhat bearish to start the year, there is the potential for investors to shift their funds to crypto, precious metals and other stores of value that do not always move in unison with stocks. There is also the potential for the crypto landscape to be flooded with new coins that steers money away from Bitcoin, Ethereum and the other top cryptocurrencies.
Bitcoin Will Likely Become Even More Mainstream
Bitcoin spilled directly over into the mainstream in the previous couple years. The popular cryptocurrency is that much more likely to become a mainstream value store in the year ahead. Bitcoin has bounced right back with each selloff in ’21, meaning there is considerable built-up demand for the cryptocurrency. As more trust is built in Bitcoin’s underlying blockchain, its use in the mainstream will become even more socially acceptable in the year ahead.
The combination of this ever-strengthening trust with word-of-mouth guerilla style marketing, heightened expectations and dissatisfaction with the fed might set the stage for Bitcoin to soar to new heights in ’22. Add in the fact that the platforms used to buy and sell Bitcoin are increasing in quality all the more and there is that much more reason for everyday people including institutions to establish a stake in Bitcoin in the year ahead.
Institutional and Retail Interest in Crypto Will Continue to Explode
The year coming to a close was highlighted by institutional investments in cryptocurrencies including Bitcoin. The European Investment Bank, Visa, JP Morgan, Square and even Twitter have embraced crypto. If is quite possible the vast majority of the top financial institutions will hop on board the crypto train in the year ahead.
The rise of crypto exchanges in ’21 will likely continue into ’22 and beyond. These trading platforms facilitate the exchange of traditional currency for cryptocurrency. As the underlying infrastructure of these platforms continues to improve and significant investments are made in the exchanges in the year ahead, more and more people will consider adding crypto to their portfolio.
Online Communities Will Embrace Cryptocurrency all the More
Surf the web on over to Reddit, Twitter, Meta and other online discussion forums and you are likely to find plenty of discussions about cryptocurrency. These web-based social platforms are buzzing about crypto for good reason. Crypto investors and traders use online discussion forums, chats and even live interactive broadcasts through platforms such as Twitter to analyze crypto prices, trading strategies and potential price changes.
Crypto Will Highlight the DeFi Movement
The decentralization of finance is not a trend. More people are awakening to the fact that it is not in the public’s interest to allow the fed to control the supply of money. The ever-evolving DeFi movement is a backlash against financial centralization. Bitcoin and other cryptocurrencies are central to the DeFi movement as they represent a decentralized means of exchanging value through a distributed ledger that cannot be digitally breached for manipulation or theft.
Though there is the potential for the federal government to step in and regulate digital currencies and somewhat limit the extent of the DeFi transition, it is clear that the masses are willing to consider the merits of cryptocurrencies as a potential replacement for the United States dollar and other conventional currencies.
Stay tuned. 2022 will be quite the interesting year for crypto.