Due to the rising potential of Bitcoin to be the most valuable global asset this 2022, many people keep an eye on the possible trends in the blockchain ecosystem. Since last year has been an eventful year for the blockchain community, cryptocurrencies have transitioned from a speculative asset to a widely accepted digital currency that spans culture and investment decisions.
Whether you’re new to crypto or planning to improve your current crypto portfolio, it’s essential to know the latest trends and learn more about what is staking crypto. Basically, staking involves a selection of cryptocurrencies and a suitable wallet to earn passive income.
To get started with your crypto investing journey, here are the trends to watch out for this 2022:
1. Legal Tender
While several nations ban cryptocurrencies, others could bring them into the financial fold instead. Inspired by the experiment of El Salvador, many developing countries may embrace Bitcoin as a legal tender. Recently, El Salvador became the first country to adopt Bitcoin as a valid currency alongside the US dollar.
The leader of the said country stated that this transition would help their citizens living abroad send money back home as well as improve tourism, development, investment, and financial inclusion. This move has also gained global attention, but it also attracted technical problems and criticism that less tech-savvy people and others living in rural areas with no internet access may be left out.
In addition, the International Monetary Fund (IMF) warned El Salvador about its decision because of the high price volatility of Bitcoin and potential risks to financial stability, consumer protection, and financial integrity. Still, some governments could adopt Bitcoin as a way to provide people with more payment options, enable affordable remittances, and hedge against inflation.
2. The Rise Of Altcoins
In the crypto environment, altcoins are the alternatives to Bitcoin. Since Bitcoin is popular and regarded as the first of its kind, more new digital currencies are viewed as altcoins or alternative coins.
There are many altcoins in the crypto market you can consider, and they are:
The best thing about altcoins is that they’re cheaper than Bitcoin and Ethereum, so you can invest more. Just make sure to do your research first before you decide to buy altcoins to boost your crypto portfolio.
3. Bitcoin Goes Green
The surging demand for cryptos has become a growing concern for environmentalists around the world. The reason behind it is that crypto mining, mainly Bitcoin mining, is energy-intensive by design and depends on the efforts of decentralized arrays of miners, which are high-performance computers that consume unsustainable energy.
In fact, Bitcoin has almost the same carbon footprint as New Zealand, which produces 36.95 megatons of carbon dioxide every year. This 2022, cryptocurrencies like Ethereum and Bitcoin are searching for greener solutions with a possibility of transitioning to less energy-intensive algorithms. Other tech companies have also joined hands to make greener crypto assets to make the blockchain world more energy-efficient.
4. Popularity Of Non-Fungible Tokens (NFTs)
NFTs were one of the game-changers in the blockchain space last year and are expected to be one of the disruptive technologies and key trends to watch in 2022. The NFT space is developing into areas that help companies and individual artists. It’s also an exciting development that has created a marketplace for digital properties.
Moreover, the market for tokenized assets will grow to trillions of dollars within the next few years. Tokenization basically refers to the method of assigning unique digital tokens, which represent ownership to various types of digital assets, including bonds, real estate, collectibles, debt, equities, or art. An augmented NFT 2.0 model is also expected this 2022 in crypto investing, which focuses more on utility and less on art to super desirable and exclusive communities.
5. Web 3.0 Will Have More Apps
Generally, web 3.0 is the next stage of online evolution that could make the internet more intelligent through artificial intelligence (AI) systems. It has implications for metaverses, other blockchain-based technologies, and crypto assets that’ll align more with web 3.0 apps as it seeks to make people’s lives much easier and give back data control to users.
2022 will see the rise of web 3.0, which primarily focuses on decentralization. For this reason, the crypto market will thrive on decentralized power to bring in more seamless technology in peoples’ daily lives going forward.
6. More Regulations
The crypto space has thrived in spite of its unregulated nature and decentralized structure. However, most people in the industry will tell others they’re open to regulations as long as the rules applied are transparent.
Governments are trying to look for ways to regulate digital currencies in a way to prevent cybercriminals and enhance retail investor safety. Crypto entrepreneurs and investors are also hoping for a moderate approach where organizations have been advocating for new rules and regulations.
For some investors, regulations might mean clear taxation guidelines and being able to incorporate crypto investments into retirement accounts. If prominent crypto trading tools tailor themselves to the regulations, they may help improve adoption by offering better security to investors.
7. More Bitcoin ATMs Worldwide
Due to crypto’s intangible nature, most people have trouble seeing it as real money since they can’t touch or see Bitcoins. However, with the installation of Bitcoin ATMs in some parts of the globe, more and more people will perceive crypto assets as palpable investment instruments.
Since 2015, the number of Bitcoin ATMs has increased and reached new highs last year. At present, there are over 33,000 Bitcoin ATMs worldwide that allow people to invest in crypto using debit or credit cards. The machines also enable crypto to be accessible for newbies and enthusiasts alike.
Bitcoin ATMs also eliminate the need for brokers as anyone can carry out crypto transactions with ease. However, fees may still need people looking for better rates.
2022 is another excellent year for crypto assets, with crypto assets and various technologies coming together with regulations to keep cybercriminals away. However, like in the past few years, it’s always crucial to be bullish in the crypto space and stay updated with the latest trends. This way, you’ll reduce possible losses and maximize your profits over time.