2021 has undoubtedly been the year that blockchain and cryptocurrency moved from a fringe topic and emerging conversation to a dominant idea and element that entered the conversation in mainstream financial markets. That said, and even taking into account the rapidly increasing market capitalization of bitcoin and other cryptocurrencies, there is still substantial ambiguity about the future of this industry. Even as regulators and lawmakers began to make significant strides in understanding and treating crypto assets, much ambiguities remain. Predicting the future is always a difficult business, and this is especially true when it comes to predicting or predicting such a rapidly moving space like blockchain and crypto assets. That said, it’s the time of year for lists, forecasts, and predictions, so let’s take a look at some of the things that could happen in 2022.
NFTs will get boring. This may seem a bit handy to some readers, especially since there is so much that is misunderstood by the mainstream market in terms of how non-fungible tokens (NFTs) work and valued. What is often overlooked in current conversations about NFTs and as a direct result of skyrocketing prices is the real value and use case of NFTs.
NFTs represent, in their true form, a digital proof of ownership that is secured by an underlying blockchain. As more and more information and data are stored in a virtual format at both the individual and institutional level, it makes sense to protect these records, it will be a priority for the future.
Not as bright as seeing NFT prices falter, but blockchain-based ownership appears to be the future of NFTS for mainstream adoption.
Stablecoins will be mainstream. Stablecoins, whether all members of the crypto community like them or not, appear to be the most viable way to start cryptocurrency adoption by non-experts and the mass market. According to the President’s Task Force report, stablecoin use increased by 500 between October 2020 and October 2021, and this adoption rate is unlikely to decrease. The main advantage and attractiveness of stablecoins is not surprising, the stability that many of these crypto assets offer so that cryptocurrencies can be used as a transactional medium versus speculative investment.
Since the calendar transforms to 2022 and the geo-politics continues to influence and partly influence the cryptoasset conversation, the emergence of the stitches is a trend that can not be ignored. Rather, and what leads to the next point of discussion is that stablecoins and other crypto assets linked to external assets appear to represent the next iteration of mainstream crypto adoption.
Crypto Payments Are Here To Stay. With the introduction of cryptoactive payments by large organizations like PayPal PYPL 1.9%, Visa and Mastercard MA 3.5% in 2021, the trend towards using crypto assets for transactional purposes seems to be permanent . The technology that supports existing aspects and applications in the market, from decentralized finance (DeFi) to NFT, has proven itself time and time again.
The technology is working, and the applications of this technology are only just beginning to be recognized by the mainstream market without experts. Stablecoins, when traded as advertised, provide an understandable and reasonably stable (no pun intended) way for individuals and institutions to enter the market. Stablecoins may not be the most popular iteration of cryptocurrencies for some members of the Bitcoin community, but they will play an important role in the future.
Bitcoin will Reach 10k. This may seem like a relatively conservative estimate of the price of Bitcoin in some circles, but it’s worth noting that the price of Bitcoin in 2021 exhibited some of its historical volatility, from lows of around $ 30,000 to all Times highs of nearly $70,000 in market volatility aside and to stay as objective as possible, the Bitcoin drop of $100,000 appears to be taking hold.
Increasing inflation, continuous monetary facilitation of the whole world and the dissemination of cryptoassets, everything to the following conclusion; Crypto assets are here to stay. The shape or end result of crypto assets remains uncertain at this point, but the integration of crypto assets has already taken place. That being said, an understanding of the interest and appetite for growth-oriented assets seems to indicate an upward trend for bitcoin and crypto assets moving forward.
If 2021 was the year that blockchain and cryptocurrencies became the main topic of conversation and analysis, next year looks set to be the year that regulations and rules align with reality of the market. It is still too early and too early to predict the evolution of the blockchain and crypto-asset sector, but the underlying trend is clear; these technologies have become widespread.
