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In previous years, the cryptocurrency world has undergone a huge transformation. In fact, its growth has been so tremendous that its future can be seen.
According to triple-A 2021 reports, the number of cryptocurrency users exceeded 300 million. Even better, according to a new Crypto.com report, the new expectations of crypto users is a billion by December 2022.
Also, with the rise of crypto users, numerous businesses worldwide have embraced crypto as a payment method. This trend has led to the development of a tool that can make day-to-day use of crypto easier.
These crypto cards include Crypto.com, Binance, and Club Swan business cards.
In the year 2021, the market price of Bitcoin hit an all-time high and significantly dropped in the same year. At the same time, numerous companies rushed to acquire crypto for future investment.
Ethereum, the second most popular crypto, also had its highs last year in 2021. These crypto highlights led to a huge increase in crypto interest. The interest was not only from crypto investors but also from teenagers and youths.
Dave Abner, the head of global development at Gemini, said, “The year 2021 was a huge breakthrough in different ways.”
Cryptocurrency is still in its infancy, and yet it’s evolving with the speed of light. But, with crypto volatility, the price of crypto keeps on falling and rising. As a result, experts are working on a theme to regulate the adoption of crypto payments by institutions to study the market better.
Although the exact prediction of crypto is nearly impossible, here are some speculations of crypto space in years to come.
1. Crypto Regulation
Several countries have shown interest in crypto regulation, like the USA. Are you a crypto investor? If yes, expect future regulation of crypto.
In fact, lawmakers in some parts of the world are figuring out laws and guidelines to safeguard cryptocurrency. These rules and guidelines will help make crypto safer for investors. Also, they will make it difficult for cybercriminals to hack.
Gary Gensler, the Security and Exchange Commission chairman, said, “The more strict crypto regulations delay, the more likely the investors are to get hurt.” In addition, the IRS has an interest in ensuring crypto investors know the process of reporting virtual currency when filing taxes.
Many experts believe the regulation of crypto to be a good thing. In fact, the co-founder and CEO of CoinFlip, Ben Weiss, says, “Everyone wins from a sensible regulation of crypto.” “Although regulation of crypto is something that gives confidence to crypto investors, we should take time to ensure its right,” he added.
2. The Outlook of Bitcoin’s Future
So far, Bitcoin is the largest cryptocurrency in the crypto market. This means Bitcoin is generally an indicator of the crypto market. That’s why most of the crypto market follows its trends.
In 2021 the market price of Bitcoin experienced a wild ride. During November 202i, the market price of Bitcoin skyrocketed to its all-time high. It registered $68,000 as the new market price.
Previously in April of 2021, it registered a significant dropped to $30,000 from $60,000 in April.
Due to such volatility, crypto experts recommend you only have less than a 5% of crypto investments in your crypto portfolio.
So what’s the expected future of Bitcoin? Many experts suggest that it’s only a matter of time for Bitcoin to hit a market price of $100,000. The author of crypto investment for dummies, Kiana Danial, says, “Bitcoin’s Past may have given us clues on its possible future.”
“Since 2011 Bitcoin price has faced plenty of ups and downs, so what we expect is short-term volatility and tremendous long-term growth,” he adds.
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3. Increased Adoption of Cryptocurrency
In 2021, not only many people start taking an interest in crypto but also mainstream companies. For instance, AMC recently announced the possibility of accepting crypto payments by the end of 2022.
Additionally, companies like Square and PayPal have immersed themselves in crypto. These companies are now allowing users to buy crypto on their platforms.
Also, Tesla, a car company, continues to go forth and back on its adoption of crypto payments. Experts predict more and more similar buy-ins in the future.
“So far, there has been a significant increase of attention on crypto, which will further the industry’s growth for some time,” says Abner.
Some experts suggest the adoption of crypto by big global corporations can help jumpstart consideration by smaller corporations. These corporations can be huge international retail stores or even banks. Adoption of crypto by these corporations can add so much credibility to it.
Now using crypto for daily expenses can feel off, but this is likely to change in the future. However, this seems to be too far away. But more institutional adoption of crypto is likely to bring the future closer.
4. Centralisation of Crypto Payments
With the increased crypto adoption throughout the world, the need to make crypto a payment method is necessary. As a result, most crypto card issuers have started issuing crypto cards. These include exchange platforms, payment providers, and even some membership clubs.
Crypto cards are so much similar to regular cards but operate through crypto. These cards make what seemed impossible years ago possible.
And thanks to crypto debit cards, you can use your crypto for your day-to-day expenses. Some of the cards that have made this possible include Crypto.com, Club Swan, Binance, and Gemini.
Additionally, notes and coins are slowly becoming history. In the new payment methods, the currency will be virtual. The currency will be in the form of numbers and letters.
The world of crypto payment is moving towards centralisation. However, the decentralised crypto markets continue to get dominated by popular cryptos. These cryptocurrencies include Bitcoin, Ether, and Ripple.
On the other hand, there is the centralised crypto market. This technology, although initially sceptical, has intrigued the private and central banking institutions.
The main goal of developing centralised currencies was to overcome the volatility risks. The volatility risks associated with decentralised cryptos.
Some countries in Asia are on the road to developing centralised digital currencies. These countries include India, Pakistan, and china.
5. The Approval of ETF
Although there has been a breakthrough on this front in New York, it’s very likely to spread globally in the future. This development is a new and highly convenient way of investing in crypto.
So far, with BITO bitcoin ETF, investors can directly buy in crypto. These buy-ins will be through traditional investment brokerages where investors own accounts.
However, some investors think that BITO ETF isn’t enough. It’s because even though there is a link between the fund and Bitcoin, the link isn’t direct. Instead, these funds hold the future contracts of Bitcoin.
Experts have said, although the future of Bitcoin might follow the trend of the actual crypto, the tracking might not be direct. Thus crypto investors have to wait for an ETF that can directly hold Bitcoin.
What Does ETF Mean For Crypto Investment?
It’s too early to tell how ETF will affect the crypto investment area. However, the BITO launch saw a significant number of trading actions during its early weeks.
ETF allows you to add your crypto investment portfolio from your brokerage, unlike crypto exchange platforms.
All in all, ETF crypto investments are still subject to crypto volatility. So if you don’t have the will to lose your money in crypto exchange platforms, don’t put it in a crypto fund.
And if you’re willing, ensure to consider the risks of adding crypto to your investment portfolio.
In other words, it’s easier to speculate the value the crypto investors will have in the coming years. By looking at the history of crypto, it’s quite evident how much potential crypto has. Also, If you are a new investor, only put in what you can afford to lose.