The world of cryptocurrencies has changed how many people look at investing. With many cryptocurrencies making considerable gains in brief periods, a lucky few have become millionaires overnight. Below are five predictions I feel we’ll see in 2022 and in the years to come.
Ethereum Could Soon Be #1
When you hear “cryptocurrency,” most of us automatically think of Bitcoin. But that soon could change; 2022 could be the year for Ethereum to take the top spot. Many crypto investors who were late to Bitcoin could likely see Ethereum as a second chance to diversify their portfolios and make significant gains. Ethereum could quite become the most valuable crypto.
A New Way to Pay
One of the biggest cons against all cryptocurrencies, even Bitcoin or Ethereum, is that it’s not a legit alternative to money. Cryptocurrencies are going from an outcast to one of the most popular ways to exchange value. As more and more companies start accepting cryptos to pay for anything from groceries to takeout food, this trend continues for 2022.
The frenzy that has taken the cryptocurrency world by storm looks to gain even more momentum in the coming year. In September 2021, El Salvador announced it would accept Bitcoin as legal tender. Many cryptocurrency exchange executives feel that many of the top cryptos will become a globally recognized form of currency.
The Banks Want In
Federal governments are beginning to partner with national banks to make cryptocurrencies. The hope is that countries all over can better manage how the money they print is being handled and exchanged. China is probably the best example by leading the charge; recently, the banking world will never be the same after doing beta tests with the new digital yuan.
Many Cryptos Could Go Bust
There are about 6,000 or so active cryptocurrencies in the world now. With the market becoming increasingly oversaturated with many cryptos designed to enrich its creators, the crypto bubble could soon pop. If not the reasonable majority, many tokens will become worthless, something to keep in mind when investing.
What it All Means
But what does it all mean? Cryptocurrencies are here to stay, and their popularity seems only to be growing. Although things are far from becoming completely legitimate, it’s only time until this happens.
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