We often talk about cryptocurrency volatility, market capitalization and overall value. Anyway, for the world we live in today, for these digital assets, to have some real worth, they must be usable in our everyday life.
While some of them are already available for trading different goods, others can’t be used that way, and maybe this is the reason why many people don’t really believe in the future of cryptocurrencies.
And since there is a real consideration that cryptocurrencies are the future of the financial world, we will have to have a deeper look at the expectations for their future adoption.
2021 Throwback
For anyone interested in cryptocurrencies, it is clear that the crypto market had a strong year in 2021. A lot of different digital assets reached their All-Time-High, including Bitcoin. The main question here is: Will we continue to see such an increasing adoption of crypto?
If we look back in 2020, there were predictions for bitcoin, saying it would increase investment interest from institutions, and this is exactly what happened.
What to expect?
More institutions to come
We believe it is not a surprise that more and more institutions are expected to adopt Bitcoin as well as other cryptocurrencies in 2022. Partly, the reason for this is the growing inflationary fear, rising all over the world. Furthermore, cryptocurrencies are becoming more popular and normal for the broad audience.
Legal adoption
An important event in 2021 was the official adoption of Bitcoin as a legal tender in El Salvador. It is not a surprise that other countries are expected to follow their example in 2022. Of course, for this to happen, it is significant to see what will happen in El Salvador and how successful will the embrace of Bitcoin be. If things go well, many countries will take the opportunity to gain from the adoption of the digital currency. The expectation is that most countries will come from Latin America.
Central banks
There is one expectation, that the developed nations will have more interest in the digital currencies of the Central bank, than in Bitcoin or other cryptocurrencies. Governments will move toward Central banks tokens in 2022, as they can provide much better financial infrastructure both for internal and global use.
Cryptocurrency payments
While it is clear that the adoption of cryptocurrencies will increase as inflation hedges, it is not so clear if the public will start using them for regular payments.
For some specialists, the increasing payment will come from increasing investment, as crypto holders will open more opportunities for using cryptocurrencies for buying different goods or services.
As we can see, the use of digital currencies for buying goods is already a trend, and it will surely gain further in 2022.
Conclusion
For most of the cryptocurrency analysts and observers, 2022 will be a year of increasing popularity and adoption of digital assets. Of course, nobody expects it to be easy. While some countries are happy to accept crypto, others reject them.
Anyway, experts say that we will witness more institutions adopting BTC as an investment, as well as an inflation hedge and the use of crypto for regular payments will grow in 2022. And if bitcoin and other cryptocurrencies are going to be adopted as a legal tender, depends mostly on El Salvador, so we will simply have to wait and see.
One thing is for sure, cryptocurrencies are here to stay.
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