Cryptocurrency Trends to Expect in 2022
The year 2021 has been a groundbreaking year for cryptocurrencies. It’s the topic on everyone’s lips in the financial world and has even spilled into pop culture thanks to the explosion of NFTs and the Twitter ramblings of figureheads such as Elon Musk. With cryptocurrencies now being adopted as legal tender, and Bitcoin reaching an all-time high of £50,000, this year has seen huge cryptocurrency news developments that have helped mould how we understand cryptocurrency and blockchain technology. There are many examples of how the booming market for cryptocurrencies has expanded just in the last twelve months. So, what’s ahead in 2022 for cryptocurrencies and what cryptocurrency trends do we expect to see?
We believe there are three main areas where cryptocurrencies will gain steam in 2022:
- A continued rise in NFT activity.
- Greater acceptance of Bitcoin as a means of payment.
- Further growth for Bitcoin, surpassing its current all-time high.
What Cryptocurrency Trends Can We Expect to See in 2022?
Considering the overwhelming growth of the cryptocurrency market in 2021, we have compiled a list of some of the top crypto trends we expect to dominate the financial markets next year:
1.NFTs are not going anywhere.
Non-fungible tokens (or NFTs) made waves on the market this year and are set to have an explosive 2022. An NFT is a digital artwork, image, code or creation that has been minted on the blockchain. NFTs have become popular as a way to record blockchain “ownership” of a particular piece of digital art. These can include anything from popular Twitter memes, gorilla avatars and generative art. NFTs are expected to increase in popularity and will be considered as a way to directly monetise channels of super-fandom, allowing individuals to ‘own’ a piece of art. It’s a technology-driven revolution driven by creators and it isn’t going anywhere soon.
2. Cryptocurrencies to be considered as legal tender.
We’ve already started to see this rolled out with the likes of PayPal, Visa, and Mastercard during 2021. El Salvador made global headlines in September when it became the first country in the world to accept Bitcoin as legal tender. The trend toward crypto assets being used for transactional purposes seems to be a permanent one. The technology to allow digital currency to be used in everyday transactions is already existing and, as the popularity of cryptocurrency continues to increase over time, we are likely to see acceptance of Bitcoin and other digital currency payments become more widespread. According to BitMEX CEO Alexander Höptner, “By the end of next year, we’ll have at least five countries that accept Bitcoin as legal tender. All of them will be developing countries.”
3. Further growth for Bitcoin, surpassing its current all-time high.
In 2021, Bitcoin showed some volatility, ranging from lows around £22,500 to an all-time high of £50,000. With rising inflation, the monetary easing around the world and the rapid increase in the popularity of crypto assets, all factors point toward the following conclusion: crypto assets are here to stay and the value of Bitcoin is expected to ultimately continue its climb. Some experts have estimated Bitcoin reaching highs of £75,000 in 2023, but others predict an ambitious six-digit price as soon as 2022. There are certainly factors that could support a higher Bitcoin price, including greater acceptance by businesses and increasing demand from Bitcoin exchange traded funds (ETFs), so this will definitely be one to watch.
Elevate Your Efficiency with BCB Group
At BCB Group, we service the blockchain and cryptocurrency industry with the promise of providing durable financial infrastructure via crypto-friendly banking solutions.
Our passion for productivity has placed us at the forefront of advancement in the industry for a number of years and keeps us pushing forwards looking for innovation in the space.We’ve created a productive, secure, and reliable environment for our clients to not only operate within but thrive within as well. Our platform has been developed to cater to our client’s needs, both now and in the future, giving you the tools you need.
When you choose to work with BCB Group, we provide you with four key features that set you up for success.
Dedicated institutional support: Our service provides each one of our clients with access to a personal, dedicated team of operational support professionals to help you with any questions or queries you may have.
Operational safeguarding: Within our platform, we’ve curated a suite of safeguarding functions such as withdrawal limits, access frequency control and transaction size limits to ensure that you’re able to make the best decisions for your institutional crypto banking requirements.
Institutional custody: We provide robust and secure custody solutions for all of your assets, from fiat to digital assets using highly effective encryption and private key storage infrastructure, ensuring your assets are safe with us, giving you peace of mind.
Full segregation: To enable our clients to view their wealth in the clearest possible way, we offer fully segregated wallets for each of your digital assets. You will have any-time access to pull account balances and transactions to help streamline your internal automation and reconciliation requirements.
As cryptocurrency continues to grow, finding more use cases across a wide variety of different industries, it’s never been more vital to have access to a payments network that facilitates fast, safe, and secure payments between users around the world.
If you’re looking to learn more about cryptocurrency trends in 2022 and the benefits that it may have for you or your business, get in touch with a member of our team today to discuss our services in more detail.