Cryptocurrency has the potential to be a revolutionary technology. What to expect of cryptocurrency finance in 2022?
The cryptocurrency market, which is currently worth three trillion dollars, will increase to five trillion by 2022.
It’s also predicted that cryptocurrency mining will generate $6 billion in revenue. Perhaps the most exciting cryptocurrency trend for 2022 is that cryptocurrency will change how we live and work by providing solutions to problems such as access to financial services and transparency of government expenditures.
The growth of cryptocurrency has been nothing short of phenomenal, with Bitcoin being the first and still remaining best-known cryptocurrency.
However, literally, thousands have entered the scene to take part in this booming market which is also polluted by terrific returns for those who invest early enough–250% annualized return just on BTC alone!
Crypto finance is booming, but what will it be worth in 2022?
In 2018 the Nasdaq-100 ETF had an annualized return of 20%. However, with such high volatility and many predictions for its value to grow exponentially this year, there are plenty who think crypto could beat out traditional markets by far.
Let’s take a look at some popular predictions:
NFTs are the new hype!
NFTs took the media by storm when a digital artwork sold $69 million as a non-fungible token (NFT) in March 2021.
Non-fungible tokens are digital assets with royalty contracts on the blockchains.
You can own, transfer the rights of NFTs.
Although there are both excitement and skepticism around the perceived value of a digital token; yet, the NFT marketplaces show $2.5 billion in sales so far in 2021.
NFTs are gaining trade value rapidly. The market is already attracting major players like Microsoft, Tesla, Starbucks, and others to embrace cryptocurrency. The tokenization of cryptocurrency is attracting increasing interest and growth in NFT marketplaces in 2022 and beyond.
Cryptocurrency as a payment option
With the rise in popularity and value, more businesses are starting to accept cryptocurrency as legal tender. This can mean big things for those who invest early on!
The future success of cryptocurrencies might just be what some would call a “sleeping giant.” With so many people now using or accepting Bitcoin (and other coins) it’s no wonder its price has been steadily increasing over time–especially because investors know there’ll always be demand from new users coming into crypto.
More Countries Will Consider the Regulation of Cryptocurrency
It’s not exactly surprising that El Salvador is the first country to make Bitcoin legal tender, but it does come as something of a surprise that Alexander Höptner – By 2022, according to the CEO of the world’s largest Bitcoin exchange company, there could be five or more potential adopters. If these countries are deemed successful, others may consider implementing crypto as well.
Investors and businesses of all types may increase their crypto holdings
Cryptocurrencies are gaining momentum as a popular investment commodity. In fact, there’s been an increase in the number of people who want to diversify their assets with cryptocurrency and many financial advisors recommend at least one percent allocation for both individuals’ portfolios or companies’ investments packages – which means even more money will certainly flow into this space by 2022!
Don’t miss being part of an exciting bitcoin trading.
The Value of Some Cryptocurrencies Is Likely to Plummet
Cryptocurrency is all the rage right now, with thousands of other cryptocurrencies out there trying to take a piece for their own. Despite this, it’s inevitable that a few will fall by the wayside; Bitcoin still has a long list of investors who are steadfast in their opposition to its value, suggesting that it might ultimately reach zero. If one or two significant players in this sector collapse, others will be unable to follow suit, leaving you susceptible to losing everything if your favorite cryptocurrency is significantly damaged.
To conclude with
Cryptocurrencies are not yet established enough to be used by the masses in everyday transactions. Even if digital currencies eventually replace or coexist with traditional paper currencies, it’s difficult for investors and entrepreneurs alike to predict which ones will stand out as dominant players–let alone what that might mean for future market values!
Cryptocurrencies are still in their infancy and it is likely that we will continue to see gains made by the use of cryptocurrencies over time. It’s important you consult with your financial advisor if considering investing in these new markets, as they may not be right for everyone but could prove lucrative!