Bitcoin hitting $100K is ‘ambitious but hardly insane’
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2021 was a crazy year in cryptocurrency. However, bitcoin’s recent plungeFor example, the price of a cigarette has risen to more than 70%In the last 52 weeks.
More important, bitcoin and other cryptocurrencies have made tremendous strides, not just in valuation — today the cryptocurrency market capitalization is estimated at $2.5 trillion, more than double a year ago — but also in growing acceptance.
One midyear survey estimated that there were 221 million cryptocurrency holders, more than twice the number in January. And this year, El Salvador declared Bitcoin to be legal tender, and several countries including the U.S. have issued some form of Bitcoin-based ETFs.
However, there was also a significant backlash against crypto currencies. China was one of the first to take action, expelled crypto miners from their country and banned most cryptocurrency transactions by its over a billion residents. India is considering similar measures.
Even though governments may not be inclined to ban crypto altogether, 2021 was a year marked by skepticism regarding the potential energy drain and climate impacts that crypto could cause.
What does this mean for the New Year? Editor of Fintech Newsletter FINHere are my top crypto trends for 2022.
1. Many El Salvadors
The mainstream adoption of cryptocurrency will continue to improve. Although they may not all adopt legal tender for cryptocurrency, financial institutions will be increasingly accepting it because their customers demand that it is part of their portfolio. Working with cryptocurrency will be a popular way for banks and financial services companies to retain and attract customers.
2. Secondary and derivative markets expansion
Canada’s Purpose Investments (Canada) launched the following in February claims to have been the world’s first bitcoin-based ETFs. A little over a year later it had some $1.4 billion under management.
There’s no reason this can’t be duplicated 10 or 100 times in markets outside the U.S. And although it’s been reluctant to do so, the Securities and Exchange Commission could approve a bitcoin or crypto ETF in 2022.
Individual investors are also increasingly likely to realize that they can build profit in a crypto portfolio, despite the risks, and borrow against it, extending the crypto ecosystem.
3. Ethereum War will Continue
Recent months have seen a thrilling competition between the crypto-titanites Ethereum and several crypto blockchains that present themselves as faster cheaper.
While the dispute might not end in 2022 it is likely that savvy investors will balance their portfolios and play safe.
4. For now, the end of Big Tech competition
2021 has been a year of remarkable retreat by tech behemoths that once dreamed of crypto domination.
Meta (formerly Facebook) has been dragging its feet over years regarding their digital currency now known as Diem. The recent departure of Meta’s head of cryptocurrency David Marcus all but guarantees that even if Diem makes it out of the starting gate, it will be irrelevant.
This departure follows Google’s announcement in October that it will not pursue its ambitious plans for a full-blown payment and banking service. Existing cryptocurrencies should see the departure of these tech giants as a chance for growth. stablecoins.
5. The government backlash will not stop
While it is confusing, Cryptocurrency has become more sought-after than any other technology.
Although technically, it is impossible to ban crypto, governments have the power to make trading difficult (e.g., by refusing licenses for exchanges). Expect more scrutiny in the U.S. as well as Europe about cryptocurrency mining’s climate impacts.
6. For the largest coins, volatile growth
The crypto-stunt can sometimes distract from the fact the overall market for largest coins is up in 2021. This is not a reason to believe that the pattern of 2022 will shift.
Bill Barhydt CEO, crypto exchange Abra, is a well-known bitcoin bull. says bitcoin could hit $100,000 in 2022. It’s not impossible, but it is quite ambitious. Those who are investors or would-be investors should realize that the stock could drop further 20% during its long climb to this height.
James LedbetterThe editor and publisher for the Fintech Newsletter is FINHe was also the ex-editor-in-chief at Inc. Follow him Twitter @jledbetter.
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