The cryptocurrency investment market at has been booming over the past several years, and it’s likely to continue growing in the coming years as well. We’ve already seen tremendous growth since 2017, with most of the major cryptocurrencies seeing an increase in value over 1,000%. Here are 8 predictions for the cryptocurrency market in 2022, including market cap growth, blockchain technology advances, and more, Click here.
1) Governments will begin regulating cryptocurrency
In 2017, governments began to tax cryptocurrencies like Bitcoin as well as impose regulations on exchanges. However, it was clear to most those regulations were not going to be a one-size-fits-all solution. This is because they would be hard pressed to enforce specific laws or restrictions across borders (since cryptocurrency exists globally).
While some countries might have little to no issues with cryptocurrencies like Bitcoin, others are less open and accepting of them (which is why many international investors now turn toward options like Ethereum when looking for an alternative).
2) Governments will recognize bitcoin as a legal currency
There are a few countries that make strides to legitimize digital currency. Although bitcoin will likely continue to be linked with illicit activity, the financial investors will see increasing acceptance from governments around the world.
2020 should see crypto become much more mainstream as it continues to break out of its reputation as an enabler of illegal transactions on dark-web markets such as Silk Road and Alphabay. By 2022, we’ll see even larger entities adopt crypto payments, further cementing its legitimacy in people’s minds.
3) Bitcoin price will fall down to $500
In 2018, Bitcoin prices spiked at an astronomical rate with no signs of slowing down. However, experts have predicted that Bitcoin’s value will plummet to $500 by 2022. Though many experts are not quite sure how they came up with their $500 figure, it is important to note that since January 2018, Bitcoin has lost approximately $1 trillion worth of its valuation.
As investors continue to withdraw from crypto and put their money back into traditional markets (such as stocks), it’s likely that we will see a similar trend over time among other cryptocurrencies. Experts also predict that in 2022, cryptocurrencies will only account for 1% of global spending on goods and services.
4) Market price fluctuation of Litecoin
Bitcoin’s effect on Litecoin’s price has historically been minimal, but with more adoption of both cryptocurrencies, individuals may see Litecoin becoming an alternative to bitcoin. Like most cryptocurrencies, Litecoin can be bought or sold at cryptocurrency exchanges online.
The basic premise is that you exchange US dollars or other forms of currency for Litecoins, and then you can use them to purchase other goods and services online at places that accept them. In 2022, more people will turn to cryptocurrency investments as a means of hedging against future economic woes like inflation (for example).
5) New cryptocurrencies will show up in the picture
There are currently more than 2,000 cryptocurrencies in existence, with new ones launching every day. Many of these cryptocurrencies fail, but some succeed and join a growing list of digital currency marketplaces. As more new digital currencies appear over time, they’ll eventually become part of a large crypto portfolio that people trade to generate profits or cut losses.
In 10 years, it’s likely that people will have completely forgotten about Bitcoin and will instead be talking about cryptocurrency coins like Ripple (XRP), Tron (TRX), VeChain (VEN) and OmiseGo (OMG). These could be some of tomorrow’s blue chips—they just need to prove themselves first.
While it’s impossible to know exactly what will happen to cryptocurrency prices, it’s a good idea to look at what analysts predict. A handful of cryptocurrencies are expected to do very well (Ripple is predicted to rise by 4500%!), but overall growth is estimated at about 500%. We expect other factors like regulation and hacking activity will play significant roles as well.
Overall, we think it’s a healthy growth rate that still leaves room for newcomers and existing enthusiasts alike. Predicting long-term cryptocurrency price movements is almost impossible; but short-term predictions aren’t so difficult – although they’re not likely going to be right 100% of the time!