The year 2021 was monumental for cryptocurrencies. But what will 2022 bring?
Bitcoin’s price has reached many new all-time highs in the last year, followed by significant declines, and institutional investment has increased from large corporations. Ethereum another cryptocurrency that Altalix offers , the second-largest digital currency, also reached a fresh all-time high late last year. U.S. government officials and the Biden administration have voiced growing interest in new cryptocurrency laws.
During this time, people’s interest in cryptocurrencies has skyrocketed: not just among investors but also in popular culture, due to everyone from seasoned investors like Elon Musk to your high school Facebook friend.
In many respects, 2021 was a “breakthrough,” according to Gemini’s director of global development, a prominent cryptocurrency exchange, Dave Abner.
Crypto EFT Approvals
In October of last year, the first Bitcoin exchange-traded fund (ETF) debuted on the New York Stock Exchange, marking a significant advance on this front. This innovation provides a new, more traditional approach to invest in cryptocurrencies. The BITO Bitcoin ETF enables investors with existing accounts at Fidelity or Vanguard to invest directly in cryptocurrencies using their existing accounts. Instead of Bitcoin, the fund owns Bitcoin futures contracts. While Bitcoin futures mimic the overall patterns of the real cryptocurrency, analysts suggest they may not track Bitcoin’s price precisely. Investors must continue to wait for a true ETF that directly owns Bitcoin.
The SEC has considered ETF clearance numerous times in recent years, but BITO is the first to get permission. A crypto ETF investment, such as BITO, involves the same risk as any other crypto investment. This investment remains speculative and volatile. If you are unwilling to lose the money you invest in cryptocurrencies on an exchange, you should not invest in a crypto fund. Consider if you are prepared to accept the risk of holding cryptocurrencies in your portfolio.
The World Adopting
In 2021, major companies from a number of industries exhibited an interest in cryptocurrencies and blockchain technology and invested in these technologies in some cases. For example, AMC just announced that it would begin taking Bitcoin payments before the end of the year. In addition, fintech companies like PayPal and Square are betting on cryptocurrencies by allowing users to make purchases on their platforms. Tesla continues to waver on its acceptance of Bitcoin payments, while having billions of dollars’ worth of crypto assets. Experts foresee a surge in participation numbers. Despite the fact that paying for items with cryptocurrencies does not make sense for the majority of consumers at the moment, this may change in the future as more merchants accept cryptocurrency payments. It will likely be a long wait before spending Bitcoin on products and services is a prudent financial move, but institutional adoption might lead to new use-cases for common people, which could affect crypto pricing. Nothing is certain, but if you purchase cryptocurrencies as a long-term store of wealth, the more “real world” applications it has, the more probable it is that demand and price will rise.