Cryptocurrency has gained immense popularity and it wouldn’t be wrong to say that it’s booming over the course of recent years, to an extent that alternative investment options have become mainstream. It’s needless to say that Bitcoin was the first and still-the-most popular cryptocurrency, thousands of other cryptocurrencies have entered the market with huge potentials. However, there are still facts about Bitcoin that you do not know.
One reason behind this popularity is the massive returns and profits that some investors have earned. For instance, Bitcoin became the best-performing cryptocurrency from 2011 to 2021 and boasted an annual return of 230%. Having said that, it is clear that cryptocurrency is becoming popular and 2022 won’t be any different. So, let’s see what 2022 will unfold in the cryptocurrency world!
Well, it’s obvious that Bitcoin won’t fall to the ground but Ethereum might rise higher than Bitcoin – at least this is what the analysts think. While Ethereum is the second-biggest cryptocurrency, it is on the way to going ahead with Bitcoin and will outpace it.
If Ethereum keeps growing at the rate it’s growing right now, it will easily take over during some months of 2022. For this reason, it has become an interesting choice for crypto investors, especially if they want to diversify their portfolios and want to have something as great as Bitcoin.
Even with the current popularity, cryptocurrency is still not the legal mode of payment and the majority of countries are still sticking to the traditional currencies. Having said that, if this keeps happening, the cryptocurrency will eventually become worthless, but in 2021, we saw a boom in popularity, and this trend will continue during 2022. Currently, the big brands have started accepting Bitcoin as a legal tender which is likely to increase the value and viability of the cryptocurrency as a whole.
Do you know that El Salvador was the first country to accept Bitcoin as a legal tender in 2021? That’s pretty surprising. However, according to the CEO of BitMEX, there are high chances that over five countries will follow the path and make cryptocurrency a legal entity.
Honestly, if even two to three countries legalize it, many more countries will give it the legalized badge and that’s something to look forward to, especially when people are investing so much in it!
If you have been reading the news, you would know that central banking authorities are having a hard time digesting the popularity and utilization of cryptocurrency. However, these central banks are highly likely to issue their own digital currencies and China is leading the way to adopt bank-issued digital currencies.
In fact, as a way to clear threats from the current cryptocurrencies, many countries have started looking into ways of creating their digital currencies. This is actually a great way for countries to avoid the decentralized and unregulated nature of the currently available cryptocurrencies.
With the popularity of Bitcoin and the cryptocurrency becoming more mainstream, it is being adopted but with higher regularity into the companies and investors’ portfolios. In fact, some financial advisors are already recommending crypto allocations of a certain percentage.
Similarly, more companies have started allocating cash in cryptocurrency and other digital assets. It’s safe to say that these allocations will flourish at their own momentum but it surely means that more money will be invested in cryptocurrency.
In the majority of cases, the trends show that cryptocurrency will become more popular and acceptance will be enhanced. However, with hundreds and thousands of cryptocurrencies out there in a not-so-mature market, some cryptocurrencies will lose their value (it won’t be too much but it will happen).
Most surprisingly, Bitcoin has multiple investors lined up which might reduce the value to $0. So, if the biggest cryptocurrency won’t get support, what hope would you have for other cryptocurrencies?
To summarize, cryptocurrency will boom and the profits will soar, but the drill is to have proper knowledge about the ins and outs of cryptocurrency before you blindly put your money in these digital assets. Also, before you invest in a cryptocurrency, do your research because there are a lot of currencies coming out!