2021 was all about two big phenomena. The first one was the world recovering and then getting hit by the Delta Variant of the Coronavirus. Second, it saw Cryptocurrencies like Bitcoin and Ethereum soar to record highs!
As the year draws to a close, it would only be fair to speak about the future. Specifically, what 2022 holds for Cryptocurrencies. Ever since the start of the COVID-19 Pandemic, Cryptocurrencies have been surprising forerunners in terms of asset classes.
In 2021, alone, Crypto climbed 70% in valuation and the cumulative worth of the total asset class breached $2 Trillion. In November 2021, Bitcoin hit its record at $69,000 USD. However, since then it has dropped 30% and has settled at the $50,000 mark (still very high!).
In this article, we are going to look at five major cryptocurrency predictions for 2022. If you are someone that wants to join in the fun and trade in Bitcoin, Ether, and other Crypto, sign up today.
List of 5 Major Cryptocurrency Predictions for 2022
1. The Crash Everyone Expects to Happen in 2022-
Ever since their historic highs in November 2021, Cryptocurrencies have experienced a downward spiral. Many so-called financial experts and economists point out that 2022 would be the year where Crypto drops to historic lows of around $10,000.
They point out the instance of 2018, where it climbed to more than $18,000 and then fell abysmally low to $3,000. It should be pointed out that most of these fall predictions are made by experts that have never believed in Crypto as an asset that has some intrinsic value.
What’s more, most of these people have been wrong about Crypto right from the very start!
2. The Continued Growth of Decentralized Finance or De-Fi-
As an application, De-Fi has been welcomed by the international community. It allows for Smart Contracts that can be executed between two parties (trading or otherwise) without the need for any third-party regulator.
With De-Fi expected to give the business community a major boost in the months to come, experts suggest that this has far-reaching implications for the world’s unbanked community.
They point to the fact that this can help with financial inclusion and enable millions to open bank accounts and access financial loans which would have been impossible earlier.
3. The Rise of NFTs and the Creation of the Metaverse-
The quest to build an alternative or parallel universe or should I say ‘Metaverse’ has been stronger than ever. Companies like Facebook have taken it upon themselves to usher in the next phase of alternative reality.
Financial companies like Visa and fast-food chains like Mcdonald’s are jumping on the NFT bandwagon, this is something that is really going to pick up in the years to come.
Digital ownership of assets and the creation of the Metaverse is going to happen, and this is suggested to boost Crypto innovation and acceptance in different parts of the world.
4. Increased Regulation and Scrutiny from National Governments-
A big reason why Cryptocurrencies like Bitcoin and Ethereum fell in value was the announcement made by the Indian Government in relation to regulations.
However, while banning became out of the question (over 100 Million Indians own Crypto), the government has tried to table bills that will increase the scope and jurisdiction of the regulators.
Most governments all over the world, particularly the ones that have a sketchy understanding of the subject look towards crypto with a lot of doubt. They fear that financial control would go out of their hands.
5. Development, Innovation, and Experimentation with Blockchain Technology-
Mukesh Ambani, the richest man in Asia stated publicly that while he does not understand or wants to engage with crypto, he believes that Blockchain Technology has a brilliant future.
His company, Reliance Industries has already set up internal teams and is trying to engage with the technology across all its different verticals. Experts suggest that businesses like Reliance that are hesitant towards crypto have accepted the potential benefits of Blockchain Technology.
2022 is going to see massive adoption, innovation, and experimentation with this new technology by the business community.
The Bottom Line
With the global crypto community pushing for greater awareness and digital platforms playing their part, crypto adoption is set for major adoption in 2022. Can you share with us some of the major predictions you have for cryptocurrencies in 2022? Let us know in the comments section below.