With the rise of the popularity of cryptocurrencies and the introduction of several new types, the term will be quite in trend in 2022. From a global adaptation of several crypto superstar to many people investing in digital currency platforms, cryptocurrency is becoming popular daily.
The first half of 2022 was much more progressive for cryptocurrencies, but there is hope for the second half. Here are some of the crucial trends of cryptocurrency in 2022:
More involvement of lawmakers
With the drastic rise and fall of the popular cryptocurrencies’ values, the platform sees an increased involvement of several Government officials and lawyers. They are trying to develop new rules and regulations to protect investors during the sudden fall in currency value. For instance, the USA has currently established new rules regarding the USA’s involvement with other countries on the matter of cryptocurrencies.
Digital currencies are still unstable, and the new laws will help investors not lose money once the value falls. The involvement of financial experts and new laws regarding cryptocurrency investments will help create more stability in the digital platforms, which is beneficial to the investors. Fraudulent activities within the network can also be checked with strict laws.
Increased adaptation of cryptocurrencies
Several major companies and countries have adapted cryptocurrencies, mainly Bitcoin and Ethereum, as forms of payment or national currencies, respectively. Companies like AMC, PayPal and Square now accept payments in Bitcoin. Major companies like Microsoft, Overstock, Starbucks and Home Depot accept Bitcoin. Tesla accepts payments in Dogecoins and occasionally accepts Bitcoin payments. Amazon has also hinted about introducing cryptocurrencies as payment recently.
In 2021, El Salvador legalized Bitcoin as a national currency, followed by the Central African Republic (CAR).
The major companies’ acceptance of cryptocurrencies will help long-term and new investors to invest more in these companies. This will increase the currencies’ value over time.
Popularization of DeFi
Decentralized finance, or DeFi, is still in its infancy, but it has huge potential and is likely to become popular quickly. Though many risks are associated with the full implementation of DeFi, 2022 is a positive year for its growth.
One of the significant changes includes the conversion of centralized ineffective automated blockchain-based programs to smart contracts. Security is also maintained as individuals with important financial commitments are inclined to believe in their specific investment strategies.
Many see DeFi as an alternative form of income.
Fall in NFTs
Non-fungible tokens or NFTs are digital assets that can be any artwork, music, painting, or even a social media post. Popular companies like Adidas, D&G, Gucci, MAC, The American Express, etc., use NFTs to keep the uniqueness of their brands intact.
However, in June 2022, NFT sales saw a downfall. Several NFT marketplaces stopped selling. There was a rise in NFT investment in 2021, but now the NFT value has lessened. Thus, investing in NFTs has become risky, as their value is now more unstable than other cryptocurrencies.
The current outlook of major cryptocurrencies
Bitcoin is the first cryptocurrency launched in 2009, and it has come a long way since. It is the most popular choice of the investors, with major companies investing in it. Ethereum is an AltCoin, the second largest cryptocurrency, with many investments.
The currencies saw a drastic rise in their value in 2021, but it changed in 2022s first half. Bitcoin, however, is still in its downfall, and the experts haven’t determined any possible chance of a value increase of Bitcoin in the remaining half of 2022.
Bitcoin and Ethereum are the major cryptocurrencies in circulation, but they are highly unstable as they are not backed by any asset or fiat currency. A short-term investment in them is risky given their sudden rise and fall in value. Investors must strategize their schemes well before investing in them, as rash decisions can lead to more harm.
The points mentioned above are the key trends of the crypto world. Investing in NFT is risky, but DeFi is worth taking the risk. The currencies are volatile, and risk is inevitable, but long-term investments can help overcome that. Moreover, with increased regulations, investors are more protected, and you can easily avoid too much loss with less than 5% investment in crypto of your overall portfolio.
Visit Bitcoin Evolution to start trading in popular cryptocurrencies today.