In 2022, cryptocurrencies are on the road to becoming an integral element of the business world. The times when digital currencies were regarded as something not worth trying are slowly fading away – these days, a large number of goods can be bought and sold using such virtual currencies, from digital art to cars to gambling bonuses to even insurance.
Unfortunately, markets are in a constant state of flux. Just because digital coins might be a good opportunity now doesn’t mean that they’ll continue to be so in a year or two. However, certain predictions can be made. First of all, blockchain technology will go beyond simple transactions and might be used in different roles as well. We can also expect more crypto-related regulations to start appearing, as governments begin to catch up to technology.
Apart from that, the current trend of increasing cryptocurrency integration into mainstream transactions should continue, but it’s unlikely that tech giants will pursue cryptocurrencies again in the near future. So, before you decide to invest in Yieldnodes, explore the article below and help yourself understand the near-future of cryptocurrencies.
More Blockchain Technology
Although it may seem that blockchain technology is only used by digital currencies, this is far from the truth. In fact, this technology has a lot of potential and can be used in other ways too – some of which are already being explored. NFTs, or non-fungible tokens, are a good example: they can be used to represent and store digital assets, making them impossible to copy.
In the next few years, we can expect blockchain technology to be used in numerous other ways, for example for data security. Blockchain model allows for data to be distributed and stored securely, which is why it has a lot of potential for application in areas such as healthcare. In fact, the use of blockchain in healthcare is already being tested, and some startups are already working on the implementation of such solutions.
More Cryptocurrency Regulations
The reason why digital currencies are still quite infamous is that they’re largely unregulated and that makes way for numerous fraudulent behaviors in the market. Most countries still haven’t passed any laws on how to handle cryptocurrencies, and those that have, did so only in the last year or two.
However, this should change in the next few years. The cryptocurrency market is growing bigger and bigger, and many renowned companies are already taking part in it. With larger market adoption and availability of cryptocurrencies, government regulations on taxation, for example, are inevitable. The good news is that this should provide some stability and increase trust in digital currencies.
Cryptocurrency Integration in Mainstream Transactions
One of the biggest issues is their lack of widespread adoption, which withholds cryptocurrencies from becoming mainstream. In other words, the majority of people still don’t see any benefits in using virtual currency over traditional methods. However, this situation might change in the near future.
To illustrate the point, PayPal, which usually is associated with traditional transactions, now allows its users to both purchase and sell Bitcoins. Previously, Bitcoin transactions were only possible through exchanges and investment platforms, which made it less accessible and more complicated, especially for a not-so-tech-savvy audience.
With PayPal’s and other companies’ involvement in this area, we can expect more and more people to start using cryptocurrencies. This, in turn, should lead to cryptocurrencies becoming more and more mainstream and integrated into the economy.
Tech Giants Might Not Pursue Cryptocurrencies In the Nearest Future
It’s no secret that the cryptomarket is unstable, and the volatile nature of digital currencies makes them a less-than-ideal investment for companies. This is why, for now, we can expect the world’s biggest tech firms to avoid cryptocurrencies. In fact, Facebook’s (or Meta’s) Diem cryptocurrency project failed, and $200 million’s worth of assets has been sold to a different company.
This, along with many other smaller failures, indicates that tech giants and boards of directors aren’t ready to introduce their own cryptocurrencies. However, NTFs are a different story – many companies have already pushed these tokens, and even more, are still to come without taking their customer base into consideration.
The Future Of Bitcoin Is Uncertain
The volatility characteristic of cryptos is one of the biggest reasons why any future predictions are so hard to make. A year ago, in November, Bitcoin was at an all-time high of $68000 and predicted to easily break through the $100000 mark. Unfortunately, the complete opposite happened, and later in 2022, this cryptocurrency went as low as $34000.
According to the Deutsche Bank, around a quarter of Bitcoin investors strongly believe that Bitcoin prices will reach $110000 and beyond by 2027. The skeptics believe that Bitcoin is yet to experience its greatest loss ever, and with the Bitcoin’s market cap and cryptocurrencies’ volatile nature, it is difficult to say whether it will remain the leading coin.
While cryptocurrencies have many pros, they also have their fair share of cons. The biggest issue is the lack of stability and regulations, which makes them quite a risky investment. However, with more and more attention paid to blockchain technology and digital assets, we can expect this to change in the next few years.
A more open approach to these technologies from the side of the government, cryptocurrency integration into mainstream transactions, and improved security might lead to cryptocurrencies achieving their full potential. And, who knows, maybe one day we’ll be paying for our groceries using Bitcoin or another cryptocurrency.