Crypto is making the weirdest headlines of 2021. Here are the predictions for Bitcoin, NFT and the future of crypto in 2022 Booster calls cryptocurrencies a world-changing technology with the potential to create new economies and empower people without access to bank accounts.
While critics point to crypto's huge environmental footprint as well as its popularity in online crime. The gap between the two views will be difficult to bridge. Much of the crypto industry functions as hype-monsters, backed by wacky memes of cute dogs and space emojis. The same industry offers staggering amounts of funding from venture capitalists and private enthusiasts, along with real technical innovations that could radically change the way money interacts. This is as is often the case with innovation, what we get may not be what we expect.
Launching from CNET, here's the direction crypto will take in 2022, according to experts:
1. Crypto is moving further into the mainstream Big companies are trying to figure out how crypto fits into their business. Everyone, from hedge fund managers to Starbucks executives, are making moves that could impact how we use digital money this year. When you hear about crypto in the headlines, it's often about Tesla CEO Elon Musk's tweets, overnight millionaires, expensive digital art, or hacks. However, the larger fundamental changes are often less flashy and eye-catching than any of the crypto-hype engines that dominate Twitter at any given moment. Stellar Development Foundation CEO Denelle Dixon said she hoped it would focus more on utilities. Denelle Dixon adds that instead of focusing on just a few use cases that create a lot of hype, it's better to focus more on use cases that drive real value and discussions around financial inclusion.
2. NFT creates new ownership opportunities NFT, or non-exchangeable tokens, is a buzzing term that many of us are hearing for the first time in 2021. A new way to determine ownership of digital property using blockchain ledgers, NFT is growing in popularity in the arts and collectibles field. One of the most famous NFT collections of 2021 is called Bored Ape Yacht Club. However, the potential of NFT goes far beyond eccentric works of digital art. NFT is also used for the purchase of digital land in the virtual world and for the ownership, licensing, and publishing of next-generation music. Some observers see a future where NFT offers access to special sales or limited edition products. How about using NFT as a concert ticket? Or, when you log into your favorite video game online?
3. Bigger hacks and ransoms Crypto is being used to facilitate millions of US dollars in ransomware payments by 2021. That's because this digital currency includes features that make it attractive to criminals. They are hard to track, unlimited, and once the payment is successful, it is almost impossible to remove them. A senior technology officer at Chainalysis, Gurvais Grigg said, Bitcoin is very attractive to criminals because it can turn illicit funds into legal, instant, and instantly disbursable. Also Read: Benefits of Music for the Health of the Human Body, Can Increase Productivity too
4. You will hear more about stablecoins Bitcoin and other cryptocurrencies have made headlines because of their volatility. You can become a millionaire or lose it all at the high speed of the internet, but try buying a latte with Bitcoin, and the volatility can get things confusing quickly. Enter stablecoins, this subcategory of cryptocurrencies, which are associated with underlying assets, reduce most of that volatility. Stablecoins can play an important role in turning cryptocurrencies into something that we can easily use to carry out ordinary transactions in our daily lives. Vice President of Product Circle Rachel Mayer said people should start paying attention to stablecoins, either as a payment method or as a digital currency. The reason is that stablecoins will be more developed in 2022.
5. New crypto rules appear Gurvais Grigg said it was important to understand that cryptocurrencies wanted to be regulated but had to be ensured by a proper regulatory framework. According to Grigg, governments globally must work with the crypto industry to create laws that protect consumers and encourage innovation. As the cryptocurrency industry grows, it will continue to shift in ways we cannot yet imagine. But one thing is clear: crypto will be a part of our future.