The cryptocurrency sector witnessed a significant breakthrough in 2021. First, the leading auction centers recorded massive sales for new digital assets, including non-fungible tokens (NFTs). There is every indication that the NFTs are gaining ground in the market. Secondly, Bitcoin made significant steps towards acceptance as a mainstream currency.
Major websites like Microsoft and Expedia acknowledged its value, incorporating it as a means of exchange. Thirdly, Bitcoin is now registered as legal tender in El Salvador, which became the first country to make this step worldwide. You can read more on this at https://www.reuters.com/business/finance/el-salvador-leads-world-into-cryptocurrency-bitcoin-legal-tender-2021-09-07/
The above examples are just the tip of the iceberg, as there are many more to explain the expansion of the cryptocurrency market in 2021. With this trend, one wonders what lies in store in 2022 for crypto. Below are some of the critical areas where the market will grow exponentially.
The Embrace of Bitcoin
Many financial analysts and researchers are yet to understand why many people adopt Bitcoin as their preferred currency. However, some have outlined several factors that could be the driving force. They include:
- High expectations of Bitcoin performance
- Perceived risk of the venture
- Quality of online platforms that support crypto transactions
- Peer pressure from other online users
- Trust in the system
Other scholars have included other factors such as level of education, age, and gender as motivators. The crypto space is now enjoying a friendly space in the financial world, with many institutions and individuals embracing it as a mainstream means of exchange. It is time, and many countries will follow El Salvador in making Cryptocurrency their legal tender.
Communication giants like Reddit and Twitter are now permitting online channels where new crypto enthusiasts can obtain strategies, predictions, and advice from seasoned users who understand the market. There is also an influx of trading platforms for crypto exchanges, and more online betting sites are offering cryptocurrencies as a deposit method. Better yet, there has been a growing acceptance of crypto even in Islamic countries from the Middle East and Maghreb region. This explains the influx in the number of online gambling sites at https://arabianbetting.com/en/ that accept Bitcoin and other cryptos. Here you will also find localized guides on choosing the best Arabic gambling sites, other available payment options such as PayPal, and the sports markets to bet on.
Institutional Involvement, Regulatory Scrutiny
The positive trajectory of crypto can be linked to the support of institutional players as well. For instance, in 2021, the European Investment Bank (EIB) took a stance on crypto. It is also on record for issuing a 100 million euro digital bond on the Ethereum blockchain. Other lenders such as Banco Santander and Goldman Sachs also took part in the issuance. Due to this interest from major global financial institutions, enthusiasts believe we are headed to mainstream crypto adoption.
The surge in crypto acceptance has rattled regulators who are keenly observing the market movements. For example, in November 2021, the European Council, whose role is to define political priorities for the European Union, issued a statement, noting that it will increase its level of clarity while regulating crypto assets. In the same breath, the Office of the Comptroller of the Currency of the United States, the Federal Deposit Insurance Corporation, and the Board of Governors of the Federal Reserve announced in the same month that they were working on a comprehensive set of policy directives on Cryptocurrency. You can read more on crypto regulations plans in this article https://fintechzoom.com/fintech_news_hot-crypto/crypto-need-to-be-regulated/.
Regulating crypto acceptance is critical , and researchers have established that the free-hand system has hindered the growth of this sector. There is a likelihood that more countries will consider digital versions in place of national currencies. As a result, they will have to boost their level of oversight. A combination of these factors will see a vibrant crypto environment in 2022.
Conclusion
2021 was a massive year for the crypto industry, and we can only expect 2022 to be better. With the increased acceptance of these currencies, one of the key things to look out for is more institutional and regulatory involvement.
