Top crypto trends towatch out for in 2022
The year 2021 was all about the rise of non-fungible tokens or NFTs, however, 2022 is going to witness a blast in this trend. People are aware that block chain technology drives all cryptocurrencies, it has much broader potential. Digital smart contracts can transform not just the finance sector, but also sectors like insurance, logistics, supply chain and more.
The US Government is clear that crypto is not getting banned anytime soon. El Salvador has become the pioneer in making Bitcoin a legal tender. All the groundwork has been laid in the year 2021 which is just a preview of what’s going to happen in 2022. Let’s discuss some trends that will further catalyze the adoption of cryptos in the coming year.
‘Hyperbitcoinisation’: The upcoming norm
More and more countries are likely to start regulating and incorporating crypto into their financial systems. This began with El Salvador that became the first country to embrace Bitcoin as legal tender. MiCA- Markets in Crypto-Assets (MiCA) framework are likely to be released by the Eurozone in 2022.
Other countries across the world will start similarly regulating crypto. This will create a domino effect and compel other regimes to start exploring how to incorporate this upcoming industry into their economy and financial planning.
Professionals in the field have faith that cryptocurrency will set off as the norm shortly. The recent statistics point that 54% of domain experts believe that ‘hyperbitcoinisation’- the time that bitcoin will replace the government-issued currency and dominate the global market – may happen by 2050.
Traditional finance and crypto will go hand in hand
2021 has witnessed that many conventional institutional investors like Morgan Stanely and BlackRock have entered the crypto world in a way that makes a difference. In 2022 we will notice that more and more financial institutions will step in, for instance, Wisdomtree is already planning to launch more crypto services in the coming year. This is just the beginning of conventional financial institutions’ interest in investing in the crypto space. With advancements in knowledge and research about the industry, there would be no turning back.
Crypto may be put to other uses
The year 2021 was a milestone for NFTs as the aggregate sales value of non-fungible tokens as of September 2021 was approximately $774 million. Since blockchain technologies can now successfully create art that can’t be forged, with support from thousands of computers across the world, we can shift our focus to other uses of crypto to aim towards a sustainable world.
Our digital identities could become safer and secure and easier to manage in 2022. We may also see improved processes in healthcare, public policy and the finance sector.
Nations may align on crypto regulations
This year we saw various regulators creating comprehensible legislation around the crypto industry. The UK and the Eurozone have become the pioneers in building sustainable and fair crypto regulations. We may expect that more jurisdictions may align on these regulations. This may enable crypto firms to harmlessly innovate and create new services and products
Aligned regulations can help crypto firms in devising potent and functional risk management strategies to safeguard consumers and the financial systems they operate in.
Crypto savings account will become the new normal
Cryptocurrency savings accounts built to accept and hold crypto deposits offer much higher rates of return than regular or even high-yield savings accounts. There are various popular crypto savings accounts like Linus, Outlet, BlockFi and Gemini. We can expect that in 2022, more and more people would want to use their idle digital assets to earn income and a whole new asset class would emerge.
Crypto’s will get viral
With new regulations, crypto savings accounts, nations getting together, and a further boost in technology to explore other uses of blockchain and NFTs-we can surely expect more and more discussion on risk management, compliance, and cybersecurity. Not that crypto didn’t get viral in 2021, but in 2022 it’s going to get wild. Exciting opportunities are coming on the way, so tighten your seat belts and get ready to dive into the crypto space.
References
- https://www.cnbc.com/2021/03/17/bitcoin-morgan-stanley-is-the-first-big-us-bank-to-offer-wealthy-clients-access-to-bitcoin- funds.html
- https://www.bloomberg.com/news/articles/2021-01-20/blackrock-files-to-add-bitcoin-futures-to-two-of-its-funds
- https://finance.yahoo.com/news/bitcoin-replace-fiat-currency-2050-140816340.html
- https://www.statista.com/statistics/1235263/nft-art-monthly-sales-value/