Very many people are interested in the important question, what will happen to cryptocurrency next?
And for good reason, because this is quite an unstable sphere, where you cannot distract yourself even for a minute.
According to recent observations, it is immediately clear and understandable that cryptocurrency is only gaining momentum and has strengthened its position in 2021.
Namely the widespread extension of NFT, the promotion of bitcoin to universal acceptance.
Besides, the Republic of El Salvador became the first country in the world to accept bitcoin as legal tender.
And that is not all, there are many more examples of how the cryptocurrency market has expanded in the last year alone.
Given this success and increase in activity, one wonders what is in store for cryptocurrency in 2022?
Article Contents
Forecasts
If you carefully collect information from analysts and experts, you can learn the following. Most tend to believe that 2022 will be the year of cryptocurrency.
According to them, this market is only in the initial phase of its development – it will grow as it evolves, as the popularity and engagement of cryptocurrencies increases.
“The cryptocurrency market cannot be ignored,” experts said.
There is also an opinion that the New Generation of cryptocurrencies, will get a whole set of useful changes in available opportunities:
- it will be accepted by central, traditional banks and financial institutions;
- it will comply with ESG-provision, i.e. to use cleaner energy sources for mining;
- with the NFT tool a variety of earning opportunities will be accessible;
- cryptocurrency will be used for smart contracts, certification of legal documents, elections, taxation, etc., and will eventually get government use.
The Future of Bitcoin
Of course, you cannot just talk about cryptocurrency and not mention the most interesting item – Bitcoin. The word is out that Bitcoin has a very good chance of becoming mainstream soon.
First, activity in various online communities is increasing quite rapidly, where even beginners have a great opportunity to exchange data with experienced investors, getting information and advice on price forecasts and trading strategies.
Second, the number of new crypto exchanges – or trading platforms where you can exchange currency for cryptocurrency – and investments in the technological infrastructure of existing exchanges have also increased recently.
For example, by clicking on the following link https://www.bestchange.com/converter/ you may quickly and easily find exchanges with the most favorable rates. Tempting, isn’t it?
Will the Rate Go Up?
Despite the volatility, many experts believe that BTC will sooner or later come close to $100K, though they have different opinions about when exactly it will happen.
Some of them predict the growth of the bitcoin rate up to $100 thousand in the first quarter of 2022.
Others do not dare to name any specific date or time period, but rather point to a trend of increasing value.
In any case, many analysts believe that investors should expect a “fairly steady” growth in value in the long term.
Hacking Attacks
One of the main risks for cryptocurrency in 2022 is an increase in hacking attacks. Five of the ten largest cryptocurrency thefts of all time occurred in 2021, CNN wrote, citing Comparitech.
This included the largest in the history of the decentralized finance market.
In August, an anonymous hacker stole about $600 million in cryptocurrency from the financial platform Poly Network.
The last successful hacker attack happened in early December – at least $150 million was stolen from “hot wallets” (accounts with a permanent connection to the Internet) of two depositors of the Bitmart cryptocurrency exchange.
In all, hackers organized 169 blockchain hacks worth nearly $7 billion in 2021.
That may not be the end. In 2022, hacker groups will launch more attacks that also target crypto-assets.
The main targets of attackers will be the collection of private wallet keys, credentials, and verification codes.
Does this mean that there will be dangerous times and we should somehow reduce our activity or be afraid of something? Definitely not, in this case, you just need to be careful.
And, of course, there is no guarantee that attacks will still happen. This can only mean one thing – the increase in interest in cryptocurrency every year will only grow.
NFT Activity
The market for NFT assets – unique tokens that are used to acquire rights to digital objects – has shown explosive growth in 2021.
Although NFTs originated as a way to formalize the ownership of digital art, they have since spread to other types of digital property, including digital real estate.
Various estimates put the NFT market at more than $11 billion in 2021, and the upward trend in market volume will continue into 2022.
At the same time, the growth of the NFT market will be due not only to the entry of new participants and investors in this market but also to technological improvements in the industry.
Now many users complain about high commissions in blockchain networks and the technological insecurity of NFT exchanges. These are aspects that the industry will be addressing in the next year.
Plus, NFT as technology can and will be used much more widely in the next year than for digitizing pictures of rocks, crypto punks, and other entertainment elements.
Generally speaking about NFT, it is important to note that there will be a ton of new projects using this technology: cross-chain metadata transfer protocols and metadata change tools; NFT giving early access or higher limits for DeFi protocols, projects for royalty sharing, revenue sharing or ownership share dispute resolution and many others.
Conclusion
Thus, after reviewing the reports and seeing all the possibilities, it is clear that cryptocurrency has and will definitely have a future.
There is no end in sight either. However, with all this, it is worth treating with caution, because the chance of failure and risks are quite high.
Everyone wants to take a bite of this “apple pie”, but if you are a beginner then it is worth learning the technology and the basics of financial markets to do everything wisely.
