In this blog, we will talk about how valuable cryptocurrencies are going to be in near future and the factors that will drive the crypto market this year.
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How Valuable Cryptocurrency Is Going to Be in 2022
The past few years have been exciting for the cryptocurrency space as it has now become a global phenomenon, and everyone is talking about it. Blockchain technology is shaping the future of finances and the projected implications are both good and bad. Where cryptocurrencies are solving a lot of problems and are giving people and organizations more control over their finances, they are also disrupting the traditional finical system.
These days the cryptocurrency market is booming and is on a steady rise. Many believe that cryptocurrency is still in its early stages, and we are yet to see a major boom for it. However, there are also people that think cryptocurrencies are not stable enough and they will eventually crash sooner or later.
This raises an important question that whether blockchain technology is as promising as it appears to be. The answer to this conundrum cannot be given with a simple back or white statement. It is possible that some branches of the crypto space are overextended at the moment but that does not mean that the entire market will eventually crumble. Things are going to change for cryptocurrency in 2022 and while some of these will be positive a few could be negative as well.
Let’s take a look at some potential progress we are expecting from the crypto space in the next 12 months.
Stablecoins Adoption Will Accelerate
When it comes to the crypto space, Stablecoins are not usually the ones that are in highlight. Many people in the crypto space are not a fan of stablecoins but that could change this year.
If we analyze this logically, stablecoins are the best way to enter the crypto market for any individual or organization. Their prices are tied to a real-world asset (FIAT in most cases) and they aren’t affected by the fluctuations in the market.
In 2021 stablecoins utilization has increased dramatically. This is only the beginning, and we will see more people and organizations holding their finances in stable digital coins.
New All-time High for Bitcoin is Inevitable
Many analysts and experts are counting on Bitcoin to put a new all-time high in 2022. It is highly likely that BTC will touch the 100K mark in the near future and a new all-time high will be formed. We saw significant gains for Bitcoin in the past year and that is not going to change in 2022.
With everything going in the world and inflation on the rise the scales have tipped in Bitcoin’s favor. The mainstream public has also shown a lot of interest in cryptocurrencies, and it has become quite clear that crypto is here to stay. That also shows that Bitcoin will continue to grow and still has a lot of potential lefts.
Bitcoin and Ethereum Dominance Will Decrease
Bitcoin and Ethereum are market leaders and play a vital role in determining the direction of the price. In 2021 both Bitcoin and Ethereum saw some solid gains but compared to other assets like Solana and Terra Luna they were quite behind.
Both BTC and ETH will continue to grow but they will also be outdone by some other major crypto projects that still have not boomed. Also, the focus of people will eventually shift towards the mid-cap cryptocurrencies as well. The room for growth in such projects is quite large which makes them more attractive. Also, a lot of new cryptocurrency projects with unique technologies are being introduced at a rapid pace. Some of these projects with better application and potential are going to attract some serious investment in the future.
More Adoption for Crypto Payments
The trend of using cryptocurrency for payments finally took off in 2021 and it is here to stay. With major companies like Visa and Mastercard adopting cryptocurrencies it is a clear indication that crypto payments are the future.
Not only that, but we will also see new crypto projects in 2022 that are going to be solely dedicated to crypto payments. One example of this is KASTA, a cryptocurrency payment application that will allow users to perform instant and borderless transactions with the help of cryptocurrencies.
Also, with more people adopting stablecoins the demand for crypto payments services is only going to rise.
Regulations Will Continue to Create Hurdles
Even though 2021 was a successful year for the crypto space, it was still troubled by regulatory authorities from all around the world. China ended up banning all the crypto-related activities with its new regulation and the U.S.A also put the hammer down on certain aspects of the market.
There are still a lot of gray areas in the crypto space which the regulatory bodies will continue to tackle. The growth for cryptocurrency seems inevitable but it is not going to be a smooth one. Cryptocurrencies will have a tough time individually as well if they are falling in that gray area.
One major example of that is Ripple (XRP) that has been going back and forth with SEC for a while now. These regulatory complications have slowed down XRP’s growth significantly.
Conclusion: How Valuable Cryptocurrency is going to be in the Future?
No one can predict how valuable cryptocurrencies are going to be in the future. However, one thing is for sure, cryptocurrencies are here to stay. We have seen a massive boom for the market in 2021 and the growth does not seem to be stopping anytime soon. The cryptocurrency market will have its up and downs in near future but it will also continue to evolve.
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