Cryptocurrency is a new commodity. Bitcoin was the first cryptocurrency that was introduced by Satoshi Nakamoto in 2009 and since then thousands of cryptocurrencies have been created. What makes it more difficult is that though Bitcoin and a few other cryptocurrencies have been on the horizon for more than a decade here, the initial period since its inception did not witness much trading activity. It was only in the latter half of the last decade that Bitcoin trading gained momentum.
Here we shall analyze the predictions that have been made for the year 2022, by crypto experts and analysts who have pooled their experience and come up with the following predictions.
Highlights for cryptocurrency in 2022 predictions
- Mixed fortunes for Bitcoin
At the start of 2022, Bitcoin was still enjoying the aftermath of its surge in its value to $70,000 in November 2021, it was thought that it will end this year at over $ 76,000.
With predictions spread all across the spectrum, while some experts are of the view that sometime this year the price of Bitcoin may soar to as high as $82,000 and then settle down to $65,000, some opine that the value of Bitcoin will range between $30,000 to $60,000. Instead,it will help long-term investors.
There are yet other crypto experts who feel that Bitcoin fortunes can only get better. This optimism stems from the following factors:
- Political unrest with a reference to the ongoing Russia-Ukraine conflict
- Rising inflation among fiat currencies
- The allure of owning a currency that is not controlled by the government or any financial institution
As opposed to the optimistic future mentioned above, some have painted a rather dismal picture for Bitcoin, especially for the next few years. The reasons backing their argument are that since Bitcoin’s functions are limited to trading and investing, other cryptocurrencies, like Ethereum, which has varied functions, are likely to dominate the cryptocurrency market in the near future. Also, digital currency floated by government-backed financial institutions will gain precedence over Bitcoin.
- Increase in the number of crypto investors
The total number of people worldwide expected to own Bitcoin by the end of 2022 is estimated at around 500 million and the number of cryptocurrency owners is estimated to reach a whopping 1 billion mark. Now, every moment people are investing and minting Bitcoin to a large extent, and you also get the best possibilities for keeping Bitcoin safe into storage options, so that you enough time to sell these when time is ripe.
The bullish performance of Bitcoin and a few other crypto coins have piqued the interest of investors. Also, the easy availability of these digital assets through various platforms like crypto exchanges and crypto trading apps has helped in the rising numbers. Bitcoin Era, a reputed trading app, has been a favorite among crypto investors and traders.
- Chances of Ethereum replacing Bitcoin as the most popular cryptocurrency
Ethereum as a blockchain is much more than just trading its currency ether. It supports developers by providing infrastructure for designing decentralized apps (dApps) and executing smart contracts. It also enables them to create ledgers for varied functions such as decentralized finance (DeFi), nonfungible tokens (NFTs), and gaming. It is a programmable kind of Blockchain, that has numerous applications in many areas including smart contracts and different types of NFTs.
- New regulations by governments to incorporate cryptocurrency into the mainstream economy
Governments have started acknowledging the acceptance of cryptocurrency as an important part of the global economy. There are certain ambiguities that need to be cleared for its effective inclusion in the economy. This is more to protect the interests of the investors from fraud and cybercrime.The system of Bitcoin investment and other crypto are made stronger day by day, and more authentic storage and protection equipment are also launched into the market, to keep the investment safe.
- USD Coin to become the strongest stablecoin
For the longest time, Tether has been the best performing stablecoin but USCD is all set to overtake Tether.
Other predictions like the disappearance of most meme coins and the DeFibeing the most lucrative application area too have been made.
The predictions for cryptocurrency are many and varied. It is for us to see what the future holds for Bitcoin and the altcoins.Whether they surge or plummet, they are here to stay.