In 2022, if you have not heard of cryptocurrencies, you are probably living in another world. If you ask people their new year resolutions or financial goals, they would mention higher and growing finances. Most people also aim to explore the world of cryptocurrencies for the same reason as it is known to be promising, providing gains and great returns. Of course, this arena can be daunting especially for newcomers.
Investing in itself can get risky as the markets are not known to be very stable throughout. The crypto market is even more volatile and fluctuating. Even the coins that have been in the market for a long time and are giving huge returns are not constant in their value. Let’s take the eg. of Ethereum. The current price of Ethereum to INR is approximately 2,86,229 rupees. This was not the price yesterday and is likely to not be the price tomorrow.
The past: In 2021, the markets were busy throughout. The overall value of cryptocurrencies and the trade volume skyrocketed to as high as $3 trillion. This was the year where popular and stable coins like BTC and ETH hit their record marks and continued to reach their all-time high values. This was also the year where coins became popular via the internet – Dogecoin made popular by Elon Musk and Shiba Inu coins. The Dogecoin price INR and overall rose by about 400% within one week after the online hype it gained.
The future: Investing in a market as erratic as this can have its ups and downs. It is important to understand and be fully aware of all the possible drawbacks and advantages that are associated with cryptocurrencies. Experts have taken it upon themselves to educate and generate a wealth of accurate knowledge among novices and potential investors. Even though no one has an exact idea of what the future holds in terms of assets regarding cryptocurrency, the experts and traders are hopeful for another fruitful year for this global phenomenon.
Here are a few predictions for 2022 that would be game-changers in drawing the attention of more people towards this field:
- The embracing of cryptos by more financial advisors – Originally, the experts and advisors have known to be in a tough spot and dilemma with regard to investing in cryptocurrencies. Owing to the risk associated with this arena and the lack of regulations or patterns exhibited, the advisors were skeptical in giving directions to their clients. In fact, they were probably more discouraging of their clients regarding buying these risky assets. These days, however, there has been an overwhelming interest from advisors in BTC and other cryptos
- Growing acceptance – More and more companies, retailers, businesses, etc have stated their interest in accepting cryptos as a form of payment. For example, the theater chain (AMC) has announced that they would start using bitcoin, bitcoin cash, ether, or Litecoin for purchasing tickets. Amazon and Walmart are also developing strategies and creating blockchains to develop online digital currencies. 2022 is said to bring about more such companies on board.
- More regulations – With the exponential interest in this arena, it was natural for regulators to step in at some point to flex their muscles and add a few rules to the otherwise transparent and decentralized sector. A few countries have refused the acceptance of this form of digital currency, however, no formal rules have been passed yet. While this is a drawback, the experts still advise people to not engage in panic buying or selling and be patient.
- Soaring of bitcoin – The investors in bitcoin received a piece of brilliant news when El Salvador announced to roll bitcoin out as a legal tender last September. The acceptance of a cryptocurrency as a currency by a country was a huge boost to the market and value. The prediction in 2022 is that at least one more country, if not multiple, would make this currency their legal form of currency.
- There are particular predictions for the prices of each of the existing cryptos that exist in the market currently along with the probable growth of metaverse and NFTs, however, these predictions may not be an accurate estimate and more of a replication of the hopes of the gurus of the financial world and investors.
If you think that 2021 was the biggest year in cryptos, you would be amazed by the predicted potential growth of this market in 2022. The prices are assumed to reach the highest of highs with the trading volume to be like never before. With access to the internet, anyone across the globe can purchase and trade in these digital currencies with no cap or limit to the value.
Experts and advisors suggest that investors keep a portion of their money aside for investing in cryptocurrencies – if not all of their designated amount. Having a diverse portfolio tailormade for careful investments would be the best possible way forward to mitigate risks and maximize returns. The future for cryptos looks good in 2022 and this would be a good time to make your investments in this game.