We’re all aware of the cryptocurrency craze that has swept over the world of tech. It has unquestionably proven to be one of the most important inventions to date.
It’s not just a potential trend but an industry that has captured the interest of millions of people. It also employs people and generates value in a variety of ways, including side and spin-off industries.
But what does this mean for us and the future? This blog has put together a list of the top cryptocurrency predictions for 2022 based on historical and current trends.
#1 – Defi Will Thrive
Despite opinions that decentralized finance (DeFi) is dangerous and unregulated, it’s most certainly going to continue to increase and even thrive in 2022. From just over $10 billion at the start of 2020, the field currently has a market valuation of over $100 billion.
There’s also no reason to believe that additional money won’t keep pouring into crypto, and mainly into the DeFi space. Finance is the most interesting space where everything starts. Institutional investors are going to want to leverage finance on a new network where they can (presumably) repeat past patterns.
The DeFi space is largely built on the Ethereum ecosystem. While we are bullish about Ethereum’s future, we do not expect Eth 2.0 to emerge until 2022. According to Crypto Dispensers, while Ethereum’s costs have made DeFi on that network a little pricey, those fees should become much more reasonable as Ethereum 2.0 launches.
More people are grasping the possibilities of Defi and its services are being integrated into the burgeoning metaverse. We expect the area to grow for at least another year, if not many more.
#2 – More Companies Will Accept Crypto
There’s been lots of positive news and commercial adoption in 2021. As more crypto-related businesses go public, we expect more businesses to adopt crypto. Consider Regal Cinemas’ recent announcement that it will accept several cryptocurrencies as payment for movie tickets and snacks.
Then there’s Newegg, an electronics shop that recently announced a BitPay agreement to accept Shiba Inu payments. Unexpectedly, this opens up yet another way to buy items with cryptocurrency.
Mastercard has teamed with Bakkt to offer crypto wallets, as well as crypto credit and debit cards, to all of their clients. It means that every merchant who accepts MasterCard could soon accept cryptocurrencies as well. However, the MasterCard announcement is the closest we’ve seen to a “crypto-as-cash” future that many proponents have been hoping for.
#3 – More Countries Will Recognize Crypto And Create Their Own Coins
El Salvador began recognizing crypto as legal cash earlier this year, making it one of the biggest crypto news stories of 2021. We won’t say that a wave of other countries will immediately follow. Some countries, including China and India, have already stated they will not recognize Bitcoin anytime soon.
The IMF and several larger nations seek Central Bank Digital Currencies or CBDCs. As you may be aware, CBDCs are essentially bank-run cryptocurrencies, which the movement seeks to avoid. Moreover, the IMF has gone so far as to discourage any nation from using crypto as a currency.
Like Panama, Congressman Gabriel Silva submitted a measure in September to make Bitcoin a national payment option. While this is positive, the law has yet to be passed.
It appears that larger nations with more robust economies choose the CBDC course. Small countries that rely on imports and remittances seem more open to digital assets. It’s far too early to tell, but it appears that many nations will keep exploring at least one of these alternatives in the coming year.
#4 – Other NFT Use Cases Will Heat Up, Not Cool Off.
The word/acronym “NFT” was named the Year’s Word by Collins Dictionary. People from Gamestop and Macy’s to Martha Stewart and Snoop Dogg have been getting engaged with NFTs since 2021. It’s a top digital trend for the future and a viable means of investment.
Again, a lot of this was important news, so you probably already knew. The crypto forecast for 2022 is that more individuals will get past the excitement of trading images and realize the greater possibilities of NFTs.
Notably, NFTs will alter online gaming, business, and much more. Items that your avatar uses or wears in a virtual environment are genuinely yours, easily transferable between platforms, and maybe sold on secondary markets at your leisure. This information alone is huge for gaming.
Other applications abound. Even mundane things like decentralized supply chain management and biometrically enforced self-sovereign digital IDs may become critical infrastructure in the following years, thanks to NFTs. The idea is that the hype train will keep moving for more NFT use cases, even if NFT art isn’t going anywhere.
#5 – Bitcoin ATM Usage Will Proliferate
Bitcoin ATMs (BTMs) have increased in usage dramatically, especially throughout 2021. They provide an easy way for first time users to gain access to cryptocurrency. It’s no secret that the world of cryptocurrency is rife with fraud, and this is a huge benefit of BTMs. They are KYC-compliant and easy to use. Moreover, the fees are transparent and moderate with high-quality BTM providers.
Most consumers are familiar with legacy ATMs so BTMs provide a look and feel that they are comfortable with. What we are actually witnessing, though few will come out and say it, is that cryptocurrency ATMs are replacing legacy ATMs in the same way that cryptocurrencies are replacing fiat currency. It’s just a matter of time, and all the data points to increased BTM usage in 2022.
The world’s leading tech companies are partnering with crypto companies to bring cryptocurrency technology to the mainstream. They are solving real-world problems like identity theft, fraud, and international payments.
Cryptocurrency technology will be incorporated into almost everything from smartphones to cars, creating a decentralized, global economy. The world will be using cryptocurrency for all sorts of financial transactions.
Banks, governments, and credit card companies will soon find it difficult to keep up with the changes in the crypto world. Cryptocurrencies will dominate the world’s monetary system. We’re only at the beginning of a new era of wealth creation. The only question is how quickly it will happen.