CRYPTOCURRENCY TRENDS IN 2022
What is a cryptocurrency?
To understand the whole functioning and growth of electronic money, it is necessary to understand the concept of cryptocurrency. By their characteristics, these are digital funds that do not use the services of banks when issuing a payment system and, accordingly, are not controlled by them.
This allows holders to perform various types of transactions regardless of their location. These funds are not a material substance. They cannot be carried with us in the form we are accustomed to. All transactions with these currencies are carried out only with the help of an electronic database since the currency is in the form of a digital code. All transaction records are entered in an open register and storage takes place in the electronic wallets of their owners.
The cryptocurrency got its name from the encryption method that is actively used when verifying the transactions of the participants. This method provides a high level of currency security.
Blockchain is used to maintain control and decentralization of the currency. This is a kind of open database with all the information distributed to various points.
The growing popularity and value of digital money are because completely different events occurring not only in the cryptocurrency space but in the world as a whole, affect their formation.
Reasons for the popularity of cryptocurrencies
Initially, this currency was created to ensure the availability of its use by any person. It should not have been affected by status, place of residence, and financial stability.
The first cryptocurrency was Bitcoin, which was worth about a dollar at the time of its creation. Today it costs more than $ 60 thousand, and this figure is unlikely to fall sharply in 2022. There has been continued growth in other types of digital currencies as well. There are several reasons for this:
1. Media attention. Constant monitoring of the growth of the cryptocurrency rate ensures that all countries enter the main news feeds. This not only increases interest in it but also gives people an understanding of which currency is best to invest in.
2. A means of protection against inflationary effects. This is because of the low percentage of digital currency. Such investments not only made it possible to create the necessary level of protection but also became a means of generating income. Also, many investors started investing in cryptocurrencies to save them. The Bitcoin example shows that they started buying more gold this year.
3. Movement of the track along with the parabolic system. Constant fluctuations in the growth and decline of the exchange rate cannot attract new investors. This is because by purchasing the coins at a low price, they can then be sold on more favorable terms. Analyst and trader Peter Brandt has published a chart showing that the value of Bitcoin could reach $200,000.
This will lead to another increase in demand for the coin. Since no cryptocurrency is dependent on the influence of oil production volumes, exchange rates, and other factors, its growth can only be affected by profitability from the purchase and popularity of one or another type of digital currency.
Moreover, the actions of banks have an active effect in increasing the close interest in the cryptocurrency market. Starting in 2020, their actions were supposed to be aimed at combating the outbreak of the pandemic, leading to dollar and euro inflation, which did not but could not affect the assets of large depositors. This has caused giant corporations, millionaires, or large businesses to view cryptocurrency as a way to hide their assets. All these actions will inevitably lead to increased interest, which will continue to grow in 2022.
Promising cryptocurrencies 2022
Cryptocurrency acquisition is a trend in 2021. The same trend will not give up its positions in 2022. This is because the digital currency world is increasingly being covered by a wave of popularity, which leads to the emergence of new investments and, accordingly, to the increase in value.
Following trends and exploring growth opportunities will not only help you make the right decision but also take a winning position for profit. Therefore, I move on to consider several cryptocurrency options that could become the most promising cryptocurrencies in 2022.
Bitcoin forecast for next 2022
When we talk about crypto money, Bitcoin immediately comes to mind. This is the first type of coin to appear in the cryptocurrency market, whose popularity has not remained stable, but continues to grow steadily. There is a limited indication of the origin of this coin. It is 21 million coins, this helps the currency to survive and not lose its properties.
Today, the coin is not the only one but is considered a benchmark for creating and comparing other options. Now the popularity of Bitcoin is only compared to gold because these two tools are as similar as possible. Both types are used to hold assets, hedge risk and are directly proportional to the growth in the number of users. Bitcoin is considered one of the safest and most stable types of cryptocurrency currently in existence. It has managed to save its investors from the COVID-19 crisis that started in 2020. Most have made huge profits by investing their assets in this coin, thereby protecting them from the effects of inflation.
Recently, the popularity of Bitcoin has leaped again as a result of receiving large investments from Elon Musk. He set aside $1.5 billion to buy 48,000 bitcoin coins in early 2021. This led to a surge in popularity and an increase in the currency's value, as you can see by looking at the chart.
currency ranks second in coin trends after Bitcoin. True, it is worth noting that it would be more correct to call it a crypto platform. Ethereum works based on smart connections and is the main one to support the operation of various applications in the cryptocurrency market.
Also with this currency, you can now pay using the Paypal system, which has led to its popularity and increasing rate.
Ethereum or ether is one of the coin types with high potential in blockchain and cryptocurrency mining technologies. Just like the first type of coin, the ether rate started to increase steadily from the beginning of this year.
This behavior proves that Ethereum should not be deleted from accounts as it can still show its best side. Ether has one big advantage over Bitcoin: This type of crypto is in development and does not yet have a full-fledged foundation. The coding of the coin is always changing, which makes it possible to create competition and stay afloat.
One of the latest Ethereum updates is the protocol change in the latest Constantinople variant. Its implementation should increase not only the speed but also the security level of the crypto platform. Before that, Ethereum could only process 15 transactions per second, now that number should increase and so should the popularity of the coin. It is estimated that a continuous increase in the Ethereum rate until the end of the year will reach $ 17,372, and by the beginning of 2022, this figure will increase to $ 18,874.
Ripple / XPR
This cryptocurrency is the token of the company of the same name. Its main task is the full integration of the blockchain into the banking industry. Ripple is trying to use cryptocurrency for transfers between banks. He is constantly trying to mend relationships, which makes him one of the progressive coins of the day. The banks themselves are not against such cooperation, they are actively developing to be able to enter payment data.
In addition, Ripple can help create easier data exchange, make payments on a global scale, and connect payment option providers to this platform.
In addition, this token perfectly behaves as one of the types of safe digital currencies, which allows it to be among the top five most popular cryptocurrencies on the market for a long time.
Not so long ago, it was announced that Ripple and MoneyGram are collaborating. This caused this currency to appreciate.
Litecoin
Litecoin was developed in 2011. The main task of this coin is to provide a minimum commission for the transaction, regardless of the owner's place of residence and geographical location. Its use can be a good basis for paying for purchases of general value.
The technology used by Bitcoin was based on the development of this cryptocurrency. Now Litecoin is one of the variants of the so-called altcoins. This type of coin is considered one of the most successful in this group.
The concept of altcoin came about because the underlying code used to create it is the same as that used by the main Bitcoin. This is a kind of youthful and alternative version of the coin. If Bitcoin can be compared to gold in the cryptocurrency market, Litecoin is silver.
Cryptocurrency assets are only 84 million units. However, that doesn't make it any less popular. Investors are impressed by the fact that Litecoin's transaction processing speed is much higher today.
Since this coin is a subsidiary, it completely replicates the price dynamics of Bitcoin. Today, this cryptocurrency can be an excellent alternative investment. Since Bitcoin is one of the most expensive crypto options, young investors have the opportunity to invest in Litecoin to enter the crypto market firmly and take a confident position there as the rate of this currency is much lower.
Now the dynamics of the Litecoin rate showcases growth, and analysts are talking about an increase in prices for this product for the period until 2022.
What trends in 2022 might affect the cryptocurrency market and its development?
The development of the cryptocurrency market is influenced by many factors. This could be new financial injections into a decentralized coin, the decision of different countries to ban electronic coins, or the complexity of the situation in the global community due to the pandemic situation.
The most popular Bitcoin coin today has a high value. Since everything else depends on the growth of this coin, such factors allow the market to develop further. For example, all child coins will also increase in value.
Among all the factors that can affect the popularization and development of the electronic money market, there are several key points. All of them, directly or indirectly, perfectly affect the financial component and regulate the growth or decline of interest in this currency.
Receive large investments with coins
Investments have always been the highest quality and most promising stimulus for the growth of electronic money. Similar expectations can be clearly seen in the example of Bitcoin. The most discussed topic this year was a possible digital currency purchase by Tesla, which is owned by Elon Musk.
The existence of a possible investment of $ 1.5 million has significantly increased the initial rate of the cryptocurrency. Such changes have always accompanied bitcoin, which made it possible to approximately control and analyze the increase in the popularity of the currency.
The next development moment for today and next year is coin buying and portfolio building activity by big companies. This creates a positive outlook for the market. It is not only constantly updated with new customers, but also allows you to maintain the necessary activity on the exchange.
Additionally, Gleb Kostarev, Binance's Eastern Europe director, talks about a possible uptick in the market situation. It is associated with wealth accumulation among long-term investors.
For example, the most famous cryptocurrency investor MicroStrategy has publicly announced that it has purchased an additional 3,907 Bitcoins. This volume will cost $177 million. After this acquisition, the company's reserve will be 108.9 thousand bitcoins. Such investments never go to waste. They increase the demand and increase in the value of the coin, which significantly stimulates the market.
Analysts also note that many investors are starting to come back from vacation in the fall. They can still continue to build portfolios through digital money.
epidemiological situation
The situation with the coronavirus has become direct evidence that the instability of the dollar before crisis situations will be the starting point for the transfer of assets of large entrepreneurs to crypto funds. They proved to be more reliable during the period of isolation measures.
In 2022, all participants in the cryptocurrency market will actively observe macro statistics in America. Such analyzes will clarify the extent to which the delta virus and the spread of this strain will impact the initiative of business owners and consumers. Their decision will determine how active the market will be next year, given the continued hyperinflationary position.
Political influence and prohibitions
This factor affects the market from the very beginning of the deployment of the cryptocurrency as a standalone currency. Many countries were skeptical of this trend, with some introducing digital currencies into their payment systems, providing an opportunity for a large number of transactions.
Also, a complete ban on the use of coins has a significant impact on the market. This was evident in the case of China, where the growth in activity on the exchange took place after the official ban on the use of the coin.
To date, all analysts are watching the Bitcoin ETF approval process. This process is scheduled for the end of October but can be postponed to another date. If the situation turns positive, the market could “explode”. This incident is directly related to the submission of a package of documents covering infrastructure costs to the United States House of Representatives for approval. In addition, changes have been made to these securities that directly affect cryptocurrency transactions. If these additions are not accepted, the current statements will force betting and mining agents and participants to completely restrict their activities in the United States.
There is also the danger of being recognized by the SEC (Securities Commission). It can consider all assets traded on cryptocurrency exchanges as "registered securities". This will significantly affect not only the market but also digital currency holders.
Official recognition of the coin
One of the first cryptocurrencies in the world, Bitcoin gained full recognition in El Salvador. At the legislative level, this coin became an official payment system along with the US dollar. With the help of crypto, it will be possible not only to pay for services but also to make purchases in any store in the country.
This event was reported by Salvadoran President Niyib Bukele on September 7, 2021. This solution will enable the country to realize savings of US$ 400 million in transactions and remittances. Such measures were taken because these procedures account for about 22 percent of the state's total GDP.
This action will fall into the hands of the cryptocurrency market as the country has bought 400 bitcoins. Such activities and the introduction of the coin into ordinary market relations will significantly increase the demand among the population of other countries. Following the example of El Salvador, states can recognize electronic money and put it into circulation.
All these factors have an impact on the cryptocurrency market in some way. They can cause a decrease or increase in the growth of indicators in 2022.
Results
Logically speaking, it is safe to say that the most promising cryptocurrency is Bitcoin. It confidently holds its position in this market and is characterized by continuous growth. For large companies, it will continue to lead in 2022.
For example, Starbucks already provides the ability to pay for purchases using Bitcoin. This serves as proof that retail is gradually entering the cryptocurrency market, leading to the popularization of digital currencies.
Also, some companies are actively offering to combine game development and digital currencies. Games with embedded blockchains will use tokens as in-game currency. It can also inevitably lead to increased popularity, making the currency more accessible to people.
But for ordinary owners and small investors, options for Ethereum, Bitcoin, Ripple, EOS will become more affordable. They cost less but have a high level of development and reliability. For long-term prospects, Litcoin is best suited as the development of this crypto will continue for a while.
People will provide an opportunity to increase profits by investing in such coins. Its development will continue to progress as the company signed several agreements with international banks in 2019. Based on this collaboration, Repple will incorporate banking system technologies into its platform that will help bring this technology to a new level of development.
Such a deal was made possible by the existence of irrefutable evidence from the company that the use of Repple could be a kind of shield against the banking system's millions of dollars in losses. Analysts confirm that banks' desire to invest in this technology continues. This process was started in 2019 and will continue further.
In any case, all market data and the active proliferation of cryptocurrencies lead to their active development throughout 2022. Multiple giant companies will want to invest in digital money, which will allow the media to cover these events. Such actions will lead to the inevitable growth of the cryptocurrency and increased demand for Bitcoin and, as a result, other types of coins.
The market is desperately trying to get out of the circle of distrust and shed the title of "financial bubble" that was given to it at the very beginning of the decentralized currency's introduction. The growth of rates is already noted and will be observed next year.
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