Will 2022 be the Year of Bitcoin?

December 5th, 2021

Will 2022 be the Year of Bitcoin?

One of the most fascinating technological phenomena in modern days is the quick advancement of blockchain technologies and the quickening of cryptocurrency usage. A blockchain is a digitally networked, decentralized public ledger with the ability to address a wide range of real-world issues digitally.

Many individuals are becoming familiar that Bitcoin and other cryptocurrencies are based on blockchain technology. However, its significance is far broad in scope: smart digital agreements can alter not only the financial market, but also insurance, supply chains, logistics, and many other fields.

The year 2021 will go down in history as among the most pivotal and momentous in the blockchain and cryptocurrency industries. United States administration has stated that it has no plans to outlaw Bitcoin and other cryptocurrencies. In addition, United States officials are debating how to manage stablecoins equitably and have permitted a Bitcoin futures ETF. Most notably, El Salvador is the initial nation to recognize Bitcoin as legal money.

2021 is but a foretaste of what is to come in 2022. Because of the groundwork created this year, it is predicted that five big themes emerging in the coming year will drive the acceptance of cryptocurrencies in unprecedented ways.

Cryptocurrency Will Be Integrated Into the Banking Systems

El Salvador was the inaugural nation to recognize Bitcoin as legal money, doing so in September 2021. Based on what is witnessed around the world, more nations are likely to regulate cryptocurrency and integrate it into their financial systems.

The Eurozone is expected to implement its cryptocurrency laws in the upcoming year, known as the Markets in Crypto-Assets (MiCA) framework, which describes electronic assets as digital representations of worth or entitlements that could be exchanged and saved in the database utilizing distributed ledger technology or comparable technologies. Other countries will certainly follow suit and identically govern cryptocurrency.

When more nations start legalizing cryptocurrency, it will set off a domino effect, forcing other countries to look into how they might integrate the new business into their monetary sector and economies.

Crypto, according to industry insiders, will eventually become the norm in everyone’s lives. According to a recent poll, 54 per cent of crypto specialists believe that hyperbitcoinisation, or the time when bitcoin substitutes fiat currency and ends up taking over international finance, will occur by 2050.

Conventional Finance Is Expected To Play A Bigger Role In The Crypto World

In the year 2021, a slew of traditional institutional investors made significant investments in the crypto industry. Morgan Stanley has become the first significant United states bank to provide Bitcoin finances to its asset management business clients in March.

Earlier this year, even the nation’s biggest asset management, BlackRock, launched its initial moves into crypto holdings with two funds.

As they proceed to explore and understand much more about business, established banks and other financial institutions will start to participate in the crypto realm.

Much more financial companies will enter the market in 2022, with WisdomTree reportedly preparing to introduce new crypto services in that year.

Crypto Will Have More Applications

The year 2021 was a big one for non-fungible tokens (NFTs). In September 2021, the overall sales volume of non-fungible tokens (NFTs) in the contemporary art world was estimated to be over $774 million.

Now that you have effectively employed blockchain innovations to make art that can’t be falsified because its record is updated by hundreds of computers all over the globe, you understand that you could use cryptocurrency in other ways to produce a completely self-sustaining universe.

Blockchain technologies may render your modern digital identities safer, more private, and simpler to administer by 2022, as well as identify areas for improvement in universal health care, political administration, and the financial sector.

Regulation That Is Consistent Throughout The Jurisdictions

In specific terms of authorities providing concrete guidelines surrounding the cryptocurrency sector, the year 2021 has indeed been fantastic.

More governments are anticipated to unite on cryptocurrency legislation next year, allowing crypto businesses to securely develop and offer new goods and services. This will be critical for crypto companies to have comprehensive risk control policies that safeguard users and the banks and other financial institutions in which they currently operate.

The United Kingdom and the Eurozone are indeed emerging as pioneers in the development of equitable and long-term cryptocurrency legislation. Next year, London, New York, Miami, Vilnius, Singapore, and San Salvador could become worldwide crypto centres as completely clear and welcoming governing frameworks are implemented.

Savings Accounts Based On Cryptocurrency Would Become The Standard

You can put Bitcoin, Ethereum, and stable coins into cryptocurrencies savings accounts and stake them to produce a significant return and additional income.

Planning will gain more traction as a stream of income for both local and international investors, according to senior strategists at JPMorgan. As Per the same expert research, staking presently receives an annual salary of $9 billion in income each year.

However, after Ethereum 2.0 is released, staking will become more popular in the DeFi space. In the quarters after the debut, stake payouts could still reach $20 billion, and by 2025, they might be as incredibly high as $40 billion.

This is a brand-new investment vehicle that, in expert opinion, is a fantastic opportunity for individuals to make money with their unused virtual currencies, and it is believed that this trend would continue in 2022.

Is there a better way to store value than cash?

With pricing for essential commodities and services increasing in 2021 as a result of the pandemic’s consequences, Federal Reserve Chairman Jerome Powell referred to inflation as a transitional occurrence on several occasions. Many others believe that inflation is only temporary and that it will begin to ease in 2022. However, with supply chains remaining constricted, the Federal Reserve has removed that transitory descriptor for the time being as you approach the second year of an era of rising.

Because cash’s purchasing value is eroding due to inflation, several investors have come to recognize Bitcoin as a legitimate asset class because of its ability to stay up with or outperform rising prices in the marketplace. This is due to a limit on the number of coins that may ever be mined, as opposed to fiat currencies like the United States dollar, which has no such limit.

Conclusion

With global investor engagement increasing, it is believed that cryptocurrencies digital platforms that establish and maintain strong regulatory and security management strategies will be effective and flourish in 2022.

As authorities attempt to make cryptocurrencies as stable and safe as feasible in their jurisdictions, effective risk management, transparency, and cybersecurity would undoubtedly be hot themes next year.

2021 was a wonderful year for cryptocurrencies, but everyone is looking forward to what 2022 has in store.

This disclaimer informs readers that the views, thoughts, and opinions expressed in the text/sponsored content belong solely to the author, and not necessarily to Bitcoin of America, organization, committee or other group or individual. All investments are at your own risk and should be done after careful research.

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