Cryptocurrency investment forecast in 2022

 

Cryptocurrency investment forecast in 2022

Bitcoin is going higher. However, if it drops a little bit in 2022, don't be shocked. If it does, but it does.

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Bitcoin...is the moon again?

Well, isn't it the moon landing in 2021? I agree. Although all "legends" say it is a worthless shell for tech nerds, it still hit a record high. Incorrect! Hey, it's not $68,000, but it will get there again.

right?

"By 200,000, Bitcoin will reach at least $20.25 million," said Nils Gregersen, founder and chief technology officer of Payer UG in Hamburg, Germany. "But I'm pretty sure we will see it drop to around $20,000 in advance."

Oops!

Okay, don't panic. I will buy it.

What about the rest of the cryptocurrency space? Today this market is more than Bitcoin. Cryptocurrency investment is the new stock market. Everyone knows this.

This year is a very interesting year for cryptocurrency. We see trends come and go very fast—influential people like Elon Musk hype the coin—he gave Dogecoin a boost in a short period, and then it went back To the useless coin.

"There are a lot of pumps on the market right now," Gregson said. "I think that by 2022, we will see the market cool down. Only stronger projects will survive. For meme coins and other shady projects, I think the air becomes thinner for them," he said, adding, Regulations will have varying degrees of positive and negative impact on Defi cryptocurrency.

"In 2022, Defi will still be one thing. As far as Defi is concerned, we only see the tip of the iceberg," Gregson said. "There are many new products that we can't even imagine today are coming soon."

Some Defi trends expected next year: Decentralized Autonomous Organizations (DAOs), providing unregulated decentralized finance and new regulated centralized-decentralized finance. I think it can be called the yin and yang of Defi. CeDeFi will provide less complex financial services based on Defi, but will generally maintain contact with financial market and banking regulators. This may be the type of Defi that Jim Cramer of Mad Money can support.

John Wu, president of Ava Labs, also predicts that Defi will have a good year in 2022.

But he seems to prefer the GameFi space.

"In terms of the total value of the ecosystem, Defi will continue to lead, but blockchain games will allow more people to be exposed to encryption because the learning and adoption curve in the game is significantly smaller than Defi," he said.

Yes, I still use X Box One to play video games. I don't know about blockchain games. I have never stared into the eyes of any blockchain. I must do this year.

Future games and entertainment digital technology. Getty

"The growth rate of the game has exceeded the new Defi event. Wait until the major developers and studios get involved," Wu said.

GameFi is considered a subset of the meta-universe because most game developers in the blockchain world are building their ecosystem to be more closely connected with the virtual world. Non-fungible tokens (NFT) are also a branch here because die-hard gamers will spend money on digital art, not to mention game-related weapons and other equipment (or fake land).

The meta-universe is still in its infancy. Therefore, this gives cryptocurrency investors a chance to enter the bottom of some newcomers. I own Decentraland (MANA) as my metaverse game.

Sven Wenzel, the co-founder of Castello Coin, which operates in the field of digital art, said: “Riding on the Meta Festival train that is connected to all other aspects of blockchain development today will be equivalent to riding the Bitcoin train in the early days. “In the long run, yes. Early investment in Metaverse tokens can bring more benefits," he said when comparing Metaverse games to games such as Bitcoin.

Both Castello Coin and Decentraland run on the Ethereum blockchain. It remains the second-largest cryptocurrency investment after Bitcoin. What will Ethereum look like in 2 years?

"I will invest in Ethereum. I invest $200 in Ethereum every month," Gregson said.

Overall, market participants expect more people to open accounts on exchanges. This is a long-term bullish signal for cryptocurrencies.

I predict that some older platforms (think E*Trade) will at least allow investment in Bitcoin and Ethereum next year. This should allow more people to participate, especially those who are unwilling to open a Gemini account.

Poland – 2020/06/15: In this photo illustration, an Ethereum logo is displayed on a smartphone. …[+] (Photo courtesy of Mateusz Slodkowski / SOPA Images / LightRocket via Getty Images)

SOPA Images/LightRocket via Getty Images

The flexibility of cryptocurrency is expected to become a bright spot again in the coming year. We have all witnessed how our investment quickly recovered from a loss of 10% or 20%.

In the past, this would trigger a continued downturn and a "crypto winter," but better risk management for professional investors meant that the market was only snowing. People will buy on dips in 2022.

I know I will. After 23 days of fighting with Covid, I am ready to deposit some money in my Coinbase account again. I might load some bitcoins. After these interviews, I may have to check MANA.

In addition to the investment philosophy, Wu of Ava Labs believes that more traditional brand companies will enter the field in 2022.

This year, new blockchain protocols such as Solana (SOL) and Polkadot (DOT) have truly achieved growth from 60 to 500. Wu predicts that many of the Fortune 12 companies that explore what NFTs and digital assets can do for them this year will be realized in seven months.

If you watch the World Series, you will see the FTX cryptocurrency exchange logo on the referee's jersey. Yes, you can buy and sell NFT on FTX, such as Stephen Curry NFT: 2974 series, which currently sells for $615.