Cryptocurrency Investing Predictions For 2022

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Bitcoin…moon again?

Well, wasn’t 2021 sort of a moon launch? I think so. It hit all-time highs despite all the “leg­ends” say­ing it’s a worth­less seashell for tech dorks. Wrong! Hey, it’s not $68,000, but it’ll get there again.

Right?

“Bit­coin will reach at least $200,000 by 2025,” says Payc­er UG founder & CTO Nils Gregersen in Ham­burg, Ger­many. “But I am pret­ty sure we will see it fall to around $20,000 before hand.”

Yikes!

Okay, no pan­ick­ing. I’ll buy it.

What about the rest of the cryp­tocur­ren­cy space? There’s more to this mar­ket today than Bit­coin. Cryp­tocur­ren­cy invest­ing is the new stock mar­ket. Every­body knows that.

This year was a very inter­est­ing one for cryp­to. We saw trends com­ing and going very fast — with coins hyped up by influ­encers like Elon Musk — who gave Doge­coin a lift for a short time before it returned to being a dud coin. 

“There is a lot of pump in the mar­ket at the moment,” says Gregersen. “I think in 2022 we are going to see a lit­tle cooldown in the mar­ket. Only the stronger projects will sur­vive. For the meme­coins and oth­er shady projects, I think the air gets a lit­tle thin­ner for them,” he says, adding that reg­u­la­tions will have an impact on DeFi cryp­tocur­ren­cies, with­in vary­ing degrees of pos­i­tives and negatives.

“DeFi will still be a thing in 2022. We have only seen the tip of the ice­berg in terms of DeFi,” says Gregersen. “There are many new prod­ucts to come that we can’t even imag­ine today.”

Some DeFi trends expect­ed next year: Decen­tral­ized Autonomous Orga­ni­za­tions (DAO) that offer unreg­u­lat­ed, decen­tral­ized finance and a new reg­u­lat­ed cen­tral­ized- decen­tral­ized finance. Call it the yin and yang of DeFi, I guess. CeDe­Fi will offer less com­plex finan­cial ser­vices based on DeFi but will hold hands with the reg­u­la­tors of finan­cial mar­kets and bank­ing, in gen­er­al. This might be the type of DeFi that Jim Cramer of Mad Mon­ey can get behind.

Ava Labs pres­i­dent John Wu also pre­dicts DeFi will have a good 2022. 

But he seems to like the Game­Fi space even more. 

“DeFi will con­tin­ue to lead in terms of total val­ue in the ecosys­tem, but blockchain gam­ing will intro­duce more peo­ple to cryp­to because the learn­ing and adop­tion curves in gam­ing are notably small­er than that of DeFi,” he says. 

Yeah, I’m still play­ing video games on an X Box One. I don’t know about blockchain games. I have nev­er stared into the eyes of any blockchain yet. I’ll have to do that this year. 

“Gam­ing growth is out­pac­ing new DeFi activ­i­ty. Just wait until major devel­op­ers and stu­dios get involved,” Wu says.

Game­Fi is con­sid­ered a sub­set of the meta­verse as most game devel­op­ers in the blockchain world are build­ing their ecosys­tem to be more linked to the vir­tu­al world. Non-fun­gi­ble tokens (NFT) are also an off­shoot here — because diehard gamers will spend mon­ey for dig­i­tal art, let alone weapons and oth­er gear (or fake land) asso­ci­at­ed with a game. 

The meta­verse is in its infan­cy. So this gives cryp­to investors a chance to get in on the ground floor of some of the new­com­ers. I own Decen­tra­land (MANA) as my meta­verse play. 

“Get­ting aboard the meta­verse train today with all the con­nec­tions to oth­er aspects of blockchain evo­lu­tion will be syn­ony­mous to get­ting aboard the Bit­coin train in its ear­li­est days,” says Sven Wen­zel, co-founder of Castel­lo Coin, which oper­ates in the dig­i­tal art space. “An ear­ly invest­ment in a meta­verse token can amount to so much more in the longer term,” he says in com­par­ing meta­verse plays with the likes of Bitcoin.

Castel­lo Coin and Decen­tra­land all run on the Ethereum blockchain. It’s still the No. 2 cryp­tocur­ren­cy invest­ment after Bit­coin. How will Ethereum look in 2022?

“I would invest in Ethereum. I would invest $200 every month in Ethereum,” says Gregersen.

Over­all, mar­ket par­tic­i­pants expect more peo­ple open­ing accounts with exchanges. That’s a long term bull­ish sig­nal for cryptocurrencies.

I pre­dict some of the more old school plat­forms (think E*Trade) will allow for invest­ment in at least Bit­coin and Ethereum next year. That should get more peo­ple involved, espe­cial­ly those who can’t be both­ered open­ing up a Gem­i­ni account, for instance.

The resilience of cryp­tocur­ren­cies is expect­ed to be a high­light again this com­ing year. We all have wit­nessed how our invest­ments can snap back rather quick­ly from a 10% or 20% loss. 

In the past, this would have trig­gered a sus­tained down­turn and ‘cryp­to win­ter’, but bet­ter risk man­age­ment on the pro­fes­sion­al investor side means the mar­ket just has a snow day instead. Peo­ple will be buy­ing the dips in 2022. 

I know I will. After a 23 day bat­tle with Covid, I’m ready to put some mon­ey to work in my Coin­base account again. I’ll prob­a­bly load up on some Bit­coin. After these inter­views, I might have to check in on MANA. 

Besides invest­ing ideas, Wu from Ava Labs thinks more tra­di­tion­al brand name cor­po­ra­tions will enter the space in 2022. 

“Look at the list of major media com­pa­nies, sports leagues or con­tent cre­ators par­tic­i­pat­ing in dig­i­tal assets at the start of the year ver­sus the end of it,” he says. Deloitte and Mas­ter­card recent­ly linked up with Ava Labs to explore their Avalanche blockchain and its smart-con­tract enabled applications. 

This year was a true zero-to-60 growth in new blockchain pro­to­cols like Solana (SOL) and Polka­dot (DOT). Many For­tune 500 com­pa­nies who used this year to explore what NFTs and dig­i­tal assets can do for them will be two feet in, in 12 months’ time, Wu predicts. 

“They’ve seen their peers suc­ceed and so the risk of fail­ure is low enough to make a move,” he says. 

If you watched the World Series, you saw the FTX cryp­to exchange logo on the jer­seys of the umpires.  Yes, you can buy and sell NFTs on FTX, like the cur­rent­ly priced $615 Stephen Cur­ry NFT: The 2974 Collection.

So 2021 was the year of NFTs, for sure. What will 2022 be the year of, if you had to pick one? 

More new blockchain projects, espe­cial­ly for busi­ness­es, says Wu.

“I think you will see enter­prise blockchain pilots move into the live stages a lot quick­er than peo­ple expect,” he says.

Sor­ry, haters, the world will still be invest­ing in dig­i­tal assets in 2022. To steal an old adage from the world of Wall Street: the trend is your friend.

**The writer owns Bit­coin, Polka­dot and Decen­tra­land. Oh, and sad­ly, Dogecoin.**

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