The history of Cryptocurrency is quite fascinating. Some quarters felt that the rigid currency control by governments was not necessary. In the 1980s, cyber currencies began to make an appearance.
The earliest digital cash inventor was David Chaum, an American cryptographer. But, at this stage, there were no decentralized digital currency protocols or software.
In 2008, an anonymous group going under the name Satoshi Nakamoto came up with Bitcoin. Indeed that was the beginning of the cryptocurrency revolution as we know it today. Bitcoin inventors wanted it to be a decentralized alternative to government-controlled currency.
Bitcoin is popular because government institutions and banks have no control over it. Further, you don’t have to have technical knowledge to invest in cryptos. The industry has continued to grow in strength. This has made it an exciting topic amongst financial experts.
Let’s look at some predictions on cryptocurrency going into 2022 and beyond.
1. Cryptocurrency Regulation May Be Unavoidable
As it currently stands, there is no international coordination or regulation around cryptocurrency. This is according to the World Economic Forum. But, the rising popularity of cryptocurrency is becoming a concern for international bodies. Many are working on risk assessment and developing relevant policy responses.
Without relevant laws and guidelines, cryptocurrency becomes an unsafe bet for investors. Exposure to vulnerabilities from cyber criminals and other scammers is a big concern.
The challenge is establishing the right agencies to oversee crypto currency transactions. Yet, this is very much an urgent need. Proper guidelines will remove many stumbling blocks for cryptocurrency investors.
So, what if you want to invest in the current unregulated cryptocurrency environment? The first thing you should do is learn about investment. Signing up for the right investment course will teach you a lot. You learn things like money management and developing an investment method.
Such courses are available online. They cover the basics of investing to more advanced levels. You will learn crypto investment tips like:
How to invest in cryptocurrency
Picking the best crypto investments to put your money in
Crypto technical analysis
Long-term capital investment, and much more.
You want to ensure that wherever you invest your money gives the highest chances of getting ROI.
2. Entry of Institutional Investors
Technical analysis of the financial markets shows the viability of the crypto market. It could explain why institutional investors are eyeing cryptocurrency as a viable platform. They see that it has tons of possibilities. The price volatility and profit potential as an investment vehicle are quite alluring.
Yet, one significant drawback is the lack of security regarding cryptocurrency. A CNBC report shows that the platform Poly Network lost more than $600 million to hackers. Poly Network provides critical connection points for different blockchains.
It is interesting to note that the hackers did return a significant amount of the money they stole. Some analysts say that this could be due to the difficulty of laundering crypto assets. Yet, that is not the only report on the enormous losses due to cybercrime.
Greater acceptance of Bitcoin for institutional investors will necessitate one thing. Industry players will need to come up with stringent security measures. There will be more significant investment in technological solutions to improve the ecosystem. The platforms should be able to handle significant amounts of investments. And it must happen within a short time.
3. Mainstreaming of Cryptocurrency
Cryptocurrency is already an acceptable form of payment in different areas. But, it still has not reached a level where we can call it a mainstream form of currency. Industry players are pretty optimistic that this may soon be the case.
Banks, online gaming, and some eCommerce platforms now accept Bitcoin. Companies like Square and PayPal are accepting Bitcoin payments on their platforms. Tesla has billions worth of crypto assets, and the interest by others keeps rising.
And very soon, Bitcoin might be the go-to choice for international trade. It is interesting to note that many banks were, at first, resistant to cryptocurrency.
One of the biggest critics was the chief executive of JPMorgan Chase, Jamie Dimon. To him, Bitcoin was not a good option for storing value. Further, it was easy to use the cryptocurrency for illicit purposes. He shared his opinion at the 2014 World economic forum.
Fast-forward to 2022, the banking industry is in the race line, trying to catch up. As of 2019, JP Morgan was working on its digital currency. Major industry players may not have too much choice but to adopt the use of cryptocurrency.
Modern customers are showing increasing interest in Bitcoin and other cryptos. Maintaining a competitive edge means meeting customers as their point of need.
4. Cryptocurrency as a Viable Investment Option
So what does all this mean for crypto investors? Let’s say your strategy was a long-term crypto investment. The more people use the crypto investment, the more value it gets. The more value, the higher the demand for cryptocurrency. Think of it like investing in the traditional stock market.
But, we go back to our earlier point of learning how to invest in cryptocurrency. The market has experienced a lot of volatility. Bitcoin, for example, did very well in 2021, hitting over $68,000. But as of May 2022, the price plunged to $36,000.
A technical analysis of the crypto market shows it is quite speculative. There have been notable spikes and falls within the past few years. That is why crypto investing is not a short-term strategy.
You may also want to keep the amounts small because of the high-risk nature of the market.
There is a lot to look forward to concerning cryptocurrency. Industry predictions show that more companies will adopt the use of cryptocurrency. That may very well catapult the use of crypto as a mainstream product. We are already seeing the acceptance of digital currency in some places.
Yet, the lack of adequate crypto security continues to plague the industry. The players must come together to innovate and stabilize the ecosystem. Regulation of the sector may be what the industry needs. It will place a greater demand on the players to ensure that proper systems are in place.