Interest in crypto has increased, and it’s now an enthralling topic. With the cryptocurrency market soaring to the highest levels ever and facing a huge drop, the crypto world is becoming more attractive. This is why the public is increasingly interested in cryptocurrency trends and the future of crypto in 2022.
The financial markets seem to be set for an exciting ride this year. IT analysts and traders must look out for plenty of changes, ranging from supply chain issues to the possibility of regulations for cryptocurrency and NFTs.
Trends That Are Revolutionizing Cryptocurrency Space
Cryptocurrency Regulation
The crypto industry globally continues to work towards a precise regulation of cryptocurrency. Legislators from Washington D.C. and worldwide are creating laws and establishing guidelines for making cryptocurrency more secure for investors.
The more stringent regulation must be followed since it can deter cybercriminals. However, the rules could be a hurdle since the various agencies may or might not be able to supervise all things.
This bipartisan legislation, to the amount of $1.2 trillion, was signed by the U.S. president in 2021 and contains provisions for tax reporting on crypto that are expected to make it easier for the IRS to monitor the crypto-related activity of Americans.
The new regulations are designed to assist investors in keeping documents of any gains or losses they make on their cryptocurrency assets. Additionally, the new rules will aid investors in promptly recording transactions made with crypto.
Crypto ETF Approval
New York Stock Exchange launched the first Bitcoin ETF in 2021. This was a significant innovation. This is a novel and more common method of investing in cryptocurrency.
Through the BITO Bitcoin ETF, traders can invest in Bitcoin directly through traditional brokerages for investment. The investors can make this purchase through accounts they already own, like Fidelity and Vanguard.
But, some experts claim that the BITO ETF isn’t enough as it cannot hold the cryptocurrency directly, even though it could be tied to Bitcoin. The fund is also able to control Bitcoin contracts for futures.
Experts say that even though Bitcoin futures track the general patterns of the actual cryptocurrency, they don’t follow the value of Bitcoin directly. Investors may be tempted to wait for an ETF holding Bitcoin.
In this regard, the SEC has previously considered ETF approval in the past approval process. However, BITO has been the only one to receive approval. Ultimately, investing in a crypto ETF such as BITO is just as risky as any other cryptocurrency investment.
NFT Market Growth Expected to Continue
NFTs, give access to decentralized funding options that have greatly assisted creators and artists by providing this option. By having this option, they have more flexibility in the way they finance their work.
The great thing is that they’re pretty safe with NFTs based on blockchain technologies. They also help authenticate ownership of digital assets.
NFTs are growing in popularity for creators and artists with access advantages. In the end, experts suggest this market might witness an increase in the value of this NFT market.
Web 3.0 to Enter the Mainstream
The HTML0 version of Web 3.0 is already creating several waves. The third generation of the internet has to be awaited by 2022. Anyone who wants to finance their websites without relying on large corporations with servers or charging high fees can achieve this by utilizing Web 3.0.
It is possible to benefit from Web 3.0 by being able to customize the web. Furthermore, it will prevent single-point failures (for instance, if an individual social site is down, it won’t impact the user’s activities during the crash period).
In addition, the growing acceptance of Web 3.0 will significantly impact cryptocurrencies like Ethereum and Helium, as well as other cryptocurrencies connected to the third edition web.
Crypto Warfare
The crypto industry is tangled in a dramatic twist of developments. The year 2021 was when experts expected an increase in the crypto market. But, the latest global revolutions in digital currencies have facilitated it.
With the backdrop of Russia’s incursion into Ukraine, the crypto market appears to have played an essential part in the history of both countries, Russia and Ukraine, in particular.
Russia has turned to cryptocurrency to fight the sanctions imposed against them due to the invasion. The reason was rooted in the nation’s attempt to limit the limitations that could be charged due to the various sanctions.
Additionally, Ukraine sought to aid with cryptocurrency. Additionally, they created an online portal for people or companies who want to give to the country using digital assets. The CoinDesk review stated that Ukraine had received close to $100 million in cryptocurrency donations. This figure is likely to grow even more, and there are no signs of the war’s end.
Conclusion
In the end, there will be a lot of speculation surrounding cryptocurrency. But the truth is that it’s an unproven investment. It is, therefore, crucial to be on the lookout for the latest trends as business owners could also opt to help investors by providing an efficient crypto app. The future of cryptocurrency is likely unpredictable, but the current trends appear favorable, and the time is now to explore the Bitcoin price on the crypto market.
