The current state of crypto is hanging by a loose thread in many people’s eyes.
Those that have been around crypto for some time fear that the current state of digital coins can mirror the one of 2018. This worry is not unfounded – the value of Bitcoin alone has significantly dropped in the past two years.
The question on everyone’s minds is whether crypto will lose its appeal or will it get in the spotlight once again?
There are many predictions surrounding this matter. Some claim this is still a new asset, so its climb back to the top will come very soon.
In this post, we’ll go through the four most important predictions about crypto today that have a chance of sticking for much longer.
Attracting More Investors
With cryptocurrency’s significance slowly rising in the global economy, more and more investors are drawn to the benefits of digital coins. Most of them keep up with today’s business and financial news on Fastbull.
According to Ric Edelman, founder of the Digital Assets Council of Financial Professionals, over 500 million people worldwide will own Bitcoin by the end of 2022. And this is no surprise seeing that his approval of this digital asset has guided many investors to these waters.
Another thing Edelman predicts is that the estimated market cap for digital assets will reach new highs by the end of 2022, all of which will be supported by adopting cryptos. This will only increase the number of investors that’ll see crypto as a fruitful business.
Individual investors, financial advisors, and different institutions will invest crypto instead of physical money in pension funds, corporate treasuries, endowments, hedge funds, etc.
Besides attracting investors, Edelman predicts that crypto will be approved by the SEC (the US Securities and Exchange Commission), and deposits will supersede $5 billion.
Decentralization of Finance
One of the aspects where crypto already has a strong influence which is believed to keep growing in the future is DeFi (short for Decentralized Finance) – part of the new Internet.
Web3 supports the idea of decentralizing online platforms by incorporating blockchain and NFTs. Nad yet some names like Elon Musk and Jack Dorsey are somewhat dubious of the idea.
Rapidly evolving into a massive financial trend here to stay, crypto has aided decentralized finance (DeFi) and decentralized autonomous organizations (DAOs), which are believed to be the hotspots for crypto growth.
The concept of DeFi revolves around recreating traditional financial products, this time without the middlemen. The concept of DAO, on the other hand, is deemed as the new internet community.
Back in October 2021, the overall value of DeFi on the Ethereum blockchain reached a high of around $100 million. Ever since then, it has seen a significant degree. Nonetheless, experts don’t see this as an alarming state – merely a sign that this part of the digital world can be “tamed” and restrained using real-world events.
It’s currently advised that potential crypto investors should look for Solana, Cardano, Ethereum, and Polkadot coins if they want to earn profits in less sizeable areas of crypto.
Increasing Value
As mentioned, the current takes on the value of crypto are not unanimous. Some see it plummet, while others see it rise and reach new highs by the end of 2022.
Those who believe in this latter idea expect to see crypto’s value reach $70,000 by the time 2022 wraps up. This rather optimistic prediction is based on the fact that more businesses and individuals have become interested in digital assets and are looking for ways to invest.
Also, the increased demand for Bitcoin ETFs will contribute to the rising value. This, coupled with the NFT craze, opens a new possibility for crypto exchanges.
Governments Will Become More Crypto-Oriented
Starting with the US Government joining the pool of countries that have adopted crypto, it’s expected more countries to follow suit.
Several US Congress members endorsed adopting crypto as the currency of the future. They strongly believe this will lead to more job openings and reaping the values more efficiently.
Moreover, more and more countries, like Finland, with its Virtual Currency Act, for example, place crypto in their laws. Kenya, Nigeria, El Salvador, Turkey, Argentina, and more are listed as the countries that own or use crypto.
Conclusion: Predictions for Crypto and Beyond in 2022
Whether the crypto sphere flops or reaches new highs is the hottest topic for crypto experts to make predictions about.
By attracting more investors to decentralized finance, crypto will stir the waters of the economy on a global scale.
Whether the value of crypto will reach $100.000 in 2023 or will more and more governments adopt cryptocurrencies, we can only wait and see.