As we are almost at the end of 2021, it is time to have a throwback to what we saw last year and of course, what we could expect to see in 2022.
We can definitely say that 2021 was a strong year in the crypto world. Various digital assets, including bitcoin, reached new-time highs. Actually, from March 2011 to March 2021, Bitcoin was the best-performing asset with a 230% annualized return.
Anyway, the crypto world is really volatile, and we can never be sure about what is going to happen. And as we are at the end of 2021, there are already some popular cryptocurrency predictions for the upcoming 2022.
Let’s have a closer look at them.
Is Ethereum going to overtake Bitcoin?
Ethereum is the second-largest cryptocurrency, after Bitcoin and has gins, that are even outpacing Bitcoin’s. It is believed that if the current trajectories continue, Ethereum can overtake Bitcoin. It is really possible for this to happen sometime in 2022.
So, Ethereum seems like an interesting choice for crypto investors who are looking for something different from just owning Bitcoin.
Cryptocurrencies as an accepted payment source
If cryptocurrencies are not accepted as a payment source, they will become completely useless. Fortunately, just the opposite has been happening in the last year, and the trend seems to continue into 2022. We can see more and more businesses accepting cryptocurrencies as legal tender, which results in increased viability and value.
Crypto as a legal currency
In September 2021, El Salvador became the first country to accept Bitcoin as legal tender. According to the CEO of BitMex, more countries are going to follow the trend in 2022. And if the adoption is successful, even more countries will follow the lead.
Central banks will issue digital currencies
If countries manage to control their own digital currencies, they would avoid the unregulated nature of existing cryptos. China was the first to push nations into adopting their own cryptocurrency.
Raising crypto allocations
Cryptocurrencies are becoming more mainstream, but also are being adopted with more regularity into the portfolios of investors. Financial advisors recommend crypto allocations of a few percentage points and companies are actually allocating cash to cryptocurrencies and different digital assets.
The expectations are that even more money will be flowing into cryptocurrencies in the following year.
Are cryptos becoming valueless?
As we already know, there are thousands of cryptocurrencies competing for space in the industry, and it is not a surprise that some of them will lose their value. Even Bitcoin has some major investors lined up against it. And if the largest and most popular cryptocurrency loses its value, what will happen to cryptos that aren’t nearly as useful?
Cryptocurrencies have come a long way from the beginning, but they are not so close to being used as mainstream currencies and sources of payment. It is too difficult for specialists and investors to predict exactly what is going to happen in the future. Some currencies will survive and others will not. But still, it seems likely that cryptos will continue making gains in usage, visibility and valuation in 2022.
And why you are waiting to see what’s next, you can always do a good research on the crypto world and decide which cryptocurrency is the best investment for you. Do not forget that investing in crypto is a risky process, requiring knowledge and previous experience.
And if you are looking for a new way to make profit from the cryptocurrencies you already have, you can always consider trading. CryptoArbi is an automated arbitrage platform that can help you find and take the best trading opportunity. Try it out!