2022 set to be a year of cryptocurrency domination
Just how big will the market for exciting new cryptocurrencies and the equally exciting established ones be?
The answer is that it will be absolutely huge.
With the new year looming, financial analysts from within the traditional banks and physical exchanges as well as cryptocurrency enthusiasts and experts are beginning to make their predictions for the year ahead known, and the limelight is on cryptocurrency.
There is a very enthusiastic viewpoint that a series of new cryptocurrencies are likely to be released in 2022, which are expected to follow the success of the array of interesting newly established coins that have gained a following this year. These are likely to range from stablecoins and native tokens such as our own XCM, right through to meme coins such as Dogecoin and Shiba Inu.
So vast is the market and the varied appetite for all things crypto, that the established cryptocurrencies are expected to continue to accelerate in value over the longer term and to dominate the global financial ecosystem in an even more all-encompassing way than they have done in 2021.
2021 was a milestone year for major cryptocurrencies such as Bitcoin and Ethereum, both of which absolutely demonstrated their mettle in two distinctly different ways. Ethereum rose in value and attracted a whole host of new supporters due to its technological evolution which means that its smart contract functionality is likely to change the shape of the financial world of the future, including the way individuals and commercial entities conduct their business.
Cross-border transactions, lending, corporate agreements and settlements are all part of the Ethereum advantage. Just a few weeks ago, two Tier 1 investment banks, HSBC and Wells Fargo both stopped using CLS Bank for trade settlement and began to operate this on the blockchain. That doesn’t just explain clearly where smart contracts are going, it shouts it loudly through a megaphone.
Bitcoin has demonstrated that it is totally stable in terms of infrastructure. The Chinese government’s crackdown on the vast mining entities in the mainland of the People’s Republic during the course of 2021 created speculation that up to 70% of Bitcoin’s mining infrastructure would be decimated.
This was not the case. Bitcoin retained its infinite nature and mining did not become easier. Despite the very cheap and sometimes even free electricity available to many of the Chinese miners who have now ceased to operate, Bitcoin continued to run perfectly. Now, many of those high-output mining rigs have been exported to Europe, North America and the Caucasus and are back in action, and new mining giants have sprung up in areas with reasonably priced electricity such as Texas.
Bitcoin rallied again during the final week of 2021, and is on the list of predictions from some of the world’s most prominent analysts within the investment banking world to be a high climber again in 2022.
Therefore, 2022 is looking set to be the year of the established cryptocurrencies and their increasing entrance into the mainstream, and a year of technological advancement for other areas of blockchain development.
Let’s see if the Wall Street predictions that Bitcoin would reach $100,000 come to fruition!