HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Olymp Trade: What a Crypto Investor Needs to Know in 2022


The year 2021 was a tremendous success for the cryptocurrency market. Bitcoin hit an all-time high as did nearly all altcoins. However, 2022 started with a big price drop. The crypto market is now bearish, but it does provide a great chance to enter the market. You can enter trade Bitcoin and other cryptocurrencies on the Olymp Trade platform.

Last year, digital assets became so popular that even large companies and governments in most countries aren’t ignoring them. So, what does the upcoming year hold for us? What will be the biggest crypto trends? Read on to find out.

Green Initiatives for Cryptocurrencies

In early 2021, Elon Musk announced that Tesla would not accept crypto as payment since Bitcoin mining causes huge CO2 emissions. Bill Gates has made a similar statement. He believes that Bitcoin uses more electricity per transaction than any other method. The proof of work consensus algorithm does consume a high level of electricity. Bitcoin is considered to have an annual carbon footprint compared to that of all of New Zealand. However, according to a study from the University of Cambridge, 75% of the electricity used by Bitcoin is generated from renewables, with hydropower taking the largest share.

Green electricity accounts for about 40% of total consumption and is mainly used in the United States. This proportion has increased after mining migration from China. Coal consumption has decreased, and much of the computing powers were moved to North America.

Carbon credit projects and tokens are likely to develop next year actively. We assume that the popularity of carbon credit marketplaces will increase. They will help companies support green initiatives and facilitate the financing of green projects worldwide.

More Global Players

Tesla shocked the market by buying $1.5 billion worth of Bitcoin. PayPal allowed U.S. residents to trade and store cryptocurrencies. Twitter added the ability to receive tips using BTC. More large companies are quite likely to accept cryptocurrencies as payment, buy them, or develop their own blockchain platforms.

However, regulators may prevent companies from registering tokens. We all remember the cases when the U.S. authorities banned Telegram’s ICO as well as the launch of Facebook’s cryptocurrency.

The market is quite likely to react with volatility to the integration of large companies. You can safely expect other giants besides Tesla to invest in cryptocurrencies. Everyone had been waiting for the Bitcoin ETF to be approved, which happened last fall. So, let’s wait and see.

Payment Systems Support Cryptocurrencies

Mastercard announced support of cryptocurrencies on its network throughout 2021. When this happens, merchants will be able to accept crypto payments, and banks will compete with cryptocurrency exchanges. This integration is likely to happen in early 2022. Visa didn’t stay on the sideline either. Settling transactions in Bitcoin and other cryptocurrencies is already part of the company’s strategy. It plans to develop a service that will allow customers at traditional banks to buy and sell digital assets. The payment giants will likely conduct live trials of the technology in emerging markets and then continue to expand across the developed world. This should provide even greater mass cryptocurrency adoption worldwide.

More Countries Accepting Bitcoin

This year, El Salvador accepted Bitcoin as legal tender. It is something that many people didn’t envision just a few years ago. El Salvador’s government officially announced this truly revolutionary move in September. It will probably lead to a downgrade of the country’s credit rating. However, a start has been made, and there is a chance that some other states will follow suit in 2022.

BitMEX’s CEO said at least five developing countries will have accepted BTC as legal tender by the end of 2022 due to issues related to remittances and inflation.

Central Banks to Issue Own Digital Currencies (CBDC)

Central Bank Digital Currency (CBDC) is a virtual form of a country’s official currency. It is issued and regulated by the central bank of the country. We can call CBDCs the regulators’ response to cryptocurrencies and stable coins in particular. It is believed that CBDCs will help regulate the monetary policy of countries. They will also enable central banks to more precisely control the economy and respond to changes in real-time.

On the other hand, governments could gain direct access to end-user wallets, which could allow tracking transactions, collecting taxes, and fines. This idea is entirely at odds with the decentralized structure of cryptocurrencies.

China is winning the race on CBDC. It started developing digital money in 2019 and tested an exchange between e-CNY and fiat cash yuan through ATMs in early 2021. Apart from China, Singapore, Tunisia, Ecuador, and Nigeria have also launched CBDCs. The pilot launch of India’s CBDC is scheduled for early 2022, while Switzerland has announced that it is technically ready to launch a digital currency. The Central Banks of Japan, Canada, Russia, Sweden, and Estonia are also actively engaged in implementing national cryptocurrencies. We can expect more countries to follow this move next year.

DeFi and GameFi

Decentralized finance, also known as DeFi, is one of the recent cryptocurrency trends. DeFi projects use smart contracts for wealth management, lending, staking, insurance, and other financial transactions with cryptocurrencies. By the end of 2021, the cumulative volume of funds used in this sector has exceeded $110 billion. One year ago, it was only $20 billion.

DeFi is expected to develop as traditional banks may add its services in 2022, so the system might grow a few times more. However, such rapid growth has already drawn the SEC’s attention. The regulator’s pressure might slow down the development of the DeFi sector.

GameFi is where DeFi meets gaming. Users can now earn real money for playing games. The surge in GameFi popularity was primarily due to Axie Infinity. The market capitalization of this game has exceeded $10 billion, and different ecosystems are being built around it. Play-to-earn gaming has become so popular that the GameFi sector now has more than 1,000 different games. There is a lot of potential in GameFi, and one can reasonably assume that big game studios will enter this market in 2022, pushing out the competitors.

Metaverse

Metaverses will undoubtedly be a trend for the next couple of years. It became obvious to everyone after Mark Zuckerberg rebranded Facebook as Meta. Apart from this step, he plans to hire 10,000 people and work in this direction for the next 5 to 7 years, which indicates how serious he is about it. The concept of metaworlds is far from being new and it has already been described by science fiction writers and even implemented in virtual space. Second Life, developed by the San Francisco-based company Linden labs, is the most famous platform. At the peak of its popularity in 2007, this virtual world had nearly 900,000 active users.

GameFi has given a new impetus to this concept. The Decentaraland project is one of the most vivid examples of a metaverse powered by a blockchain. It is an Ethereum-based virtual reality platform. It is a mix of Sims, Minecraft, and GTA, where users can travel to different worlds, create their own, and buy and sell goods as an NFT.

The incredible success of Decentaraland and similar projects is sure to attract a huge number of new players to this area of the GameFi sector in the coming year.

NFT

Non-fungible tokens (NFTs) were also on everyone’s lips last year. Prices for digital art are astronomical. Beeple’s “The First 5000 Days” was sold for $69.34 million, and a virtual land plot in Axie Infinity was sold for $2.5 million. Famous artists, musicians, soccer clubs, and celebrities made incredible profits by selling their NFTs. NFT trading volume surpassed $10 billion in the third quarter of 2021, which is a seven-fold increase. Morgan Stanley analysts expect the NFT market to grow to $300 billion by 2030, with the luxury NFT market hitting $56 billion.

However, NFTs can also be used in other areas apart from digital art and collecting. Since they can verify ownership, NFTs can become a link between virtual and conventional realities. We may assume that people might start using NFT to pay for real estate, vehicles, goods, and services. The process of real asset tokenization has been gradually developing since 2017, but the increased interest in the NFT technology can serve as a springboard for such innovative projects.

Conclusion

The trends that started last year will likely actively develop in the coming year. However, one should keep in mind that the most robust trend in the cryptocurrency space and the benchmark of the whole market is BTC value. Now, when the market becomes bearish in 2022 and the Bitcoin price drops, it leads to a decline in all cryptocurrencies.

While Bitcoin is going down, it makes sense to take a break and search for areas that will grow many times faster when the market will eventually reverse. Nevertheless those spheres that will survive during the potential “cryptowinter” will generate the best income for the smart investors.

#source


RELATED

What stocks of the US banking industry are to watch for?

The economic shock caused by the COVID-19 pandemic hit the securities of leading US banks. During the recovery of the US stock market, the financial sector became an outsider...

Can ChatGPT trade better than humans?

AI machine learning models are a hot topic right now, and ChatGPT is the name on everyone’s lips. Some believe AI will inevitably lead to millions of job losses...

Automating Your Forex Trading

As the forex market moves enthusiastically into the electronic age...

Scalping as a trading style

A wide selection of financial and analytical tools allows the trader to put into practice any trading ideas. Moreover, ready-made and effective trading strategies...

Litecoin Versus Ethereum And Where To Invest

A key difference in the makeup of these two coins is that Ethereum is built to be a platform for applications and other programs to work on - it is known as a decentralised...

USDT vs USDC: Which one is the Better Investment?

When you start trading crypto, you often hear the term “stablecoin.” Furthermore, you will learn that there is more than one out there, but the two biggest ones to consider will be USDT vs USDC...

Best Gaming Crypto Coins to Invest in 2023

You may have many unanswered questions about the best gaming crypto. After all, there are so many new games in the pipeline that you need to be aware of...

Swing Trading: a Trading Style for Professionals

The classification of traders might seem sketchy. However, there is a clear division between them based on the period of holding an open position...

How to trade stocks

If you are unfamiliar with the stock market, then this trader's guide will assist you in understanding this market and how you can easily trade stocks...

Advantages Of Using AMarkets VPS for FX Trading

VPS is short for a virtual private server and it’s widely used for trading in the financial market. The VPS hosting service will be especially useful for traders who prefer...

What are Expert Advisors?

Expert Advisors (EAs) are automated programs that run on the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) trading platforms. They are algorithms that can be used...

Does the Stock Market Reflect the Real Economy?

The stock market has often been regarded as an indicator or predictor of the real economy. Its suggested that a large downward movement in the stock market (20% and below) is telling of a future recession...

NFP's Effect on Gold Prices

While the relationship between gold and NFP is not clearly defined, in the short term, it could serve as an indicator and a trading opportunity. Being one of the most...

How to trade cryptocurrencies

Cryptocurrency trading has become highly popular over the past year. The crypto market has grown tremendously, with global market capitalisation reaching a trillion-dollar valuation.

NFTs and Tokenization of the Economy

Non-Fungible Tokens (NFTs) are the new hype in the digital world. These tokens are digital representations of value created using blockchain technology...

Which Cryptocurrency can you realistically trade online?

The financial crisis led to the worldwide distrust in the financial system. To help solve this problem, an anonymous person...

The Surge of High-Frequency Trading (HFT): Implications for Market Stability and Liquidity

In the last decade, High-Frequency Trading (HFT) and Algorithmic Trading (AT) have emerged as dominant forces in the world of trading. In 2010, HFT accounted for 56% of all U.S. trades and 38% of European trades...

Gold at 8 years highs. Why so and who will benefit from it?

The business of storage operators with a high level of security, in which physical, not virtual, metal is stored, is in a boom of demand from wealthy investors...

Top up with stablecoins at FreshForex

Stablecoins are a class of cryptocurrencies tied to traditional currencies, and also physical assets (energy, precious metals, etc.). Stablecoins are not subject to strong...

Speculating with CFDs

Typically short-term, speculative trades are generally coupled to major market events such as central bank interest-rate decisions and company results.

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.