cryptocurrency

Cryptocurrencies – What is Next?

  • By Optbetter
  • Friday, 29th Apr 2022
  • 0 comments
  • Finance

The year 2021 showed to be a very promising year for digital assets. Many cryptos were at an uptrend, particularly in the last months of the year. As we could see, among the most promising assets was Bitcoin. We can deliberately state that it was the cryptocurrency of the decade.

The interest in investing in cryptos these days is fast growing. Therefore, BTC sees its price increase significantly throughout the year. According to different forecasts, this cryptocurrency could reach up to three times its price compared to the previous year.

However, it’s also the case with Ethereum. Its new update (Ethereum 2.0) could lead to a growth in the accumulation volume. It’s also the case for Chainlink (LINK) and some more prominent cryptocurrencies.

It’s most probable that those active cryptocurrencies that were the most appealing and attracting new investors’ interest will become more expensive. They will no longer be within reach of everyone.

Central banks, meanwhile, regularly criticize cryptocurrencies, like European Central Bank President Christine Lagarde, who called bitcoin a “highly speculative asset” in February.

At this moment, the bitcoin market theoretically exceeds the market capitalization of Tesla with a $ 1,000 billion market cap or the Chinese group Tencent. It’s approaching levels of Alphabet, the parent company of Google ($ 1,400 billion).

JPMorgan analysts predicted that bitcoin’s capitalization, which is estimated at $ 2.6 trillion, could eventually join gold.

But, there are also other very interesting cryptocurrencies. However, their cost will eventually explode as well. At the moment, that is not yet the case. They are cheap cryptocurrencies and, therefore, easy to accumulate.

Promising cryptocurrencies in 2022

Several quite promising cryptos have emerged recently. Investing part of your capital in them is a bet that could prove profitable in 2022! We mainly retain the following:

Tezos (XTZ): secured by the Proof-of-Stake system, money creation can yield up to 7% in a year. The XTZ was climbing steadily in 2021.

Cosmos (ATOM): Working with blockchain network technology is still in the experimental stage but is very promising from a technical perspective.

Stellar Lumens (XLM) allows real-time transactions and international payments with minimal commissions.

MakerDAO (MKR, DAI): After three years from its creation, the Maker DAO has remained stable. According to predictions for 2022, it will multiply and become the main currency within the Ethereum system.

The potential for growth

Although the cryptocurrency industry is still in its infancy, and despite the fear of the bitcoin crash, many merchants worldwide are already accepting Bitcoin – and blockchain has the potential to reach out to many industries.

In addition to global remittances, the blockchain’s decentralized nature paves the way for the transformation of the identity protection industry as customer data is stored in an authenticated and distributed database that could be managed by clients and passed on to the companies and authorities of their choice.

Since identity data remains in the individual’s control rather than a governing body, this will be an important area. Industries that use loyalty programs or contracts could also be affected. It’s possible to see a potential disruption in the insurance industry.

The cryptocurrency sector, in general, has the potential for huge growth. The key is in the continued progression of cryptocurrencies themselves so that apps are added, and operations are faster and cheaper.

Many big banks worldwide are already working on creating their own digital currencies such as Chinese digital RMB, Bahamas sand dollar, or Sweden e-krona. With the recent adoption of cryptos by one of the biggest payment systems, Paypal, cryptos are taking an even more important role in the world of the financial service industry.

Could a cryptocurrency become the world’s main currency? We don’t know yet for sure, but some units will be worth several trillions of dollars.

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