With cryptocurrency being as volatile as it is, it can be extremely hard to try and predict what might happen over a daily basis. Indeed, the virtual currency has managed to carve a reputation of being incredibly unpredictable and one that can potentially be an investors nightmare. However, there is no denying that digital assets have become rather widespread throughout the world, as their popularity has soared and the adoption levels have subsequently increased.
Although it can be unpredictable in regard to price, there are a number of things that can be predicted when thinking about the future and what impact cryptocurrency can have over an extended period of time. Naturally, it would be a great time now to take a look at what the future may hold and check out the bold predictions that have been made for 2022 as we enter a new year.
More financial services will embrace it
One of the biggest predictions that can be made for 2022 and cryptocurrency is that the virtual currency receives a greater level of acceptance and is embraced by more financial services than previously experienced. An example of a service likely to start embracing it will be financial advisors.
This particular service has been in a hard spot in recent years due to the lack of regulations, therefore they have been unable to guide clients with the amount of guidance that they would normally want to offer. However, the interest from clients in digital assets has continued to grow, with nearly 50% of them asking about crypto in the last six months compared to 17% in 2020.
Advisors are no longer in a position to ignore the interest in crypto and are perhaps unable to try and convince their clients not to go down that particular route anymore.
New regulations
It would not be hard to imagine that 2022 would be the year where we see a lot of new regulations be introduced, with a number of experts concluding that this is likely to happen sooner rather than later. Of course, this will help everyone in a variety of ways.
Financial advisors will be in a better position to offer guidance, whilst it could also help to drive crypto further into the mainstream market as more people may be willing to invest in it. However, it has been acknowledged that regulation could cause frustration to begin with.
Rise of crypto gambling
Alongside the growth of the crypto market has been the exponential boom that the iGaming market has managed to experience during the same time period. Many have argued, and will continue to do so, that crypto and gambling go hand-in-hand and it is hard to disagree.
Indeed, the introduction of crypto casinos has made it a lot easier for enthusiasts to enjoy one of their passions, whilst also being able to experience a number of benefits at the same time. Those using crypto will be able to benefit from enhanced convenience, anonymity, security, faster speeds whilst it remains ubiquitous.
More women to get involved in crypto investing
One expert has suggested that 2022 could see even more women become involved in crypto investing, with tastes, attitudes and behaviors continuing to evolve.
It had been found that the average cryptocurrency owner is a 38-year-old male making approximately $111,000 a year, but Gemini’s 2021 State of the U.S. Crypto Report suggests that could change as nearly two-thirds of U.S adults are crypto-curious, with 53% of those being women. “Crypto-curious” refers to those who do not own crypto currently but are interested in learning more or actually hold digital assets in the near future.
It is understood that women only account for just 26% of the current crypto holders market, so if the figures from the report are right, the entire demographics of crypto investors could change in 2022.
Major retailers will accept crypto
Perhaps in the same way that financial advisors are no longer able to ignore cryptocurrency, retailers will also find that they will no longer be in the same position, as well.
Of course, there are already a number of businesses that accept Bitcoin and other digital assets as a form of payment for their goods and services, however 2022 could see the number of retailers accepting virtual currency increase greatly. There is already evidence that major organizations are already making moves, including Amazon and Walmart as they continue to hire blockchain experts.
One reason experts believe this could happen in 2022 is due to the consumer generations, with millennials and Gen Z living in digital worlds and perhaps more likely to make purchases with crypto rather than traditional old money. Additionally, retailers may wish to go digital as they could look to eliminate costs incurred when a debit or credit card has been used.
Crypto bubble will start to deflate
Naturally, despite the fact that it has continued to grow and enter the mainstream, not everyone is yet to be fully convinced about the future of cryptocurrency. Some experts are suggesting that 2022 could be the year where the bubble starts to deflate, although not quite burst.
The Federal Reserve has already indicated that it will start to tighten federal policy and this is likely to have an impact on the crypto market due to its position as being incredibly speculative. Furthermore, the digital asset does not have intrinsic value, either.
To conclude, there are a number of different predictions that can be made regarding the future of cryptocurrency as we enter 2022. Of course, some are going to benefit some more than others, however the predictions made certainly suggest that the industry could be in for an interesting 12 months.
