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What to expect from crypto market predictions for 2022?
2021 was a historic year for cryptography, technological advances boosted the boom in the market, raising investment rates and cryptocurrency development.
Here we highlight the biggest highlights of 2021 and the 5 biggest promises for 2022, which promises to be an even better year for the crypto universe.
Fintech and traditional payments adopt blockchain and adhere to crypto solutions:
The financial sector is the main target of companies responsible for the development of blockchains, the technology has high levels of efficiency and transparency, in addition to being able to reduce transaction costs.
In 2021 we saw companies like PayPal, Venmo, Mastercard and even Twitter allow their users to transact with cryptocurrencies. Offering solutions around transparency and reducing transaction spend can drive these platforms to share in the financial market.
The use of transactions in blockchains and the adoption of smart contracts:
The variety of applications offered by the Ethereum network has led to exponential growth in transactions within the platform, ranging from NFT properties to smart contracts. The forecast is that platforms using smart contracts will grow even more in the future.
Bitcoin begins to demonstrate its potential as a substitute for fiat currency, especially in emerging countries:
Since its inception, bitcoin has been seen by many visionaries as a store of value, protecting its investors from the negative effects of monetary policies or periods of inflation. Due to its decentralized origin and fixed supply, the cryptocurrency does not face inflationary pressures like fiat currencies.
The mining ban in China changes the outlook for the global mining market:
The ban not only on mining, but also on cryptocurrency trading and transactions within Chinese territory, caused cryptocurrency miners to leave the country. With the departure of China, the global market changed, favoring companies and miners present in the United States, as competition decreased.
Crypto Predictions for 2022
NFT (Non-Fungible Token):
NFTs gained prominence during 2021 and promise to grow even more in 2022. We believe that the usability of the tool will be explored by the platforms, bringing it closer to the public that is not part of the crypto predictions.
The long-awaited upgrade of the Ethereum network will be a reality in 2022, the platform plans to switch from the “Proof of Work” mechanism to “Proof of Stake”. It is expected that with this change there will be a reduction in energy expenditure and at the same time an increase in the capacity of the network.
After the adoption of bitcoin as a legal tender in El Salvador, it is estimated that other emerging countries will have the same positioning, which will boost the currency as an asset with the potential to generate revenue.
Opening new crypto businesses:
Many companies responsible for enabling cryptocurrencies in 2021 have gone public, a trend that is expected to follow in 2022. With the constant growth of the crypto market, this list of companies is expected to grow even more.
ESG investors consider Bitcoin as an accelerator of green energy usage:
One of the biggest concerns related to cryptocurrency mining is related to energy consumption. Riot Blockchain, one of the main bitcoin miners in the United States, fiercely advocates the use of green and sustainable energy to carry out mining activities.
Just like Stronghold Digital Mining, which uses coal mining waste to generate power and mine bitcoin.
The trend is for several other companies to adopt sustainable mining, as well as for platforms to invest in improvements capable of reducing energy consumption.