Experts Comment: What 2022 Has In Store for Crypto

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This past year brought many major changes to the rapid­ly devel­op­ing world of cryp­to. While glob­al adop­tion surged and some coun­tries adopt­ed cryp­to as legal ten­der, oth­ers rolled out bans and reg­u­la­tions. BeIn­Cryp­to spoke to some experts in the space on their pre­dic­tions for what 2022 has in store for crypto. 

Accord­ing to Chainal­y­sis the glob­al rate of cryp­tocur­ren­cy adop­tion surged by over 880% this past year. Bit­coin and Ethereum both hit new all-time highs. The for­mer topped $69,000 as fiat infla­tion fears esca­lat­ed. More­over, El Sal­vador became the first coun­try to adopt Bit­coin as legal tender. 

This year one of the biggest uproars came with the emer­gence of non-fun­gi­ble tokens to the main­stream. These dig­i­tal assets changed the way many rec­og­nized authen­tic­i­ty and the way many inter­act with com­mu­ni­ties (DAOs). In fact NFTs par­tic­u­lar­ly dis­rupt­ed the sports and music indus­tries. They rev­o­lu­tion­ized the way stars and brands can con­trol their own monetization. 

Of course, next to these mon­u­men­tal and cryp­to-for­ward devel­op­ments, 2021 also held some moments of con­cern in the space. Ear­li­er in the year, Chi­na set its harsh­est bans yet on cryp­tocur­ren­cies and the min­ing there­of. In addi­tion, there were many scares in the cryp­to com­mu­ni­ty over impend­ing reg­u­la­tions from glob­al law­mak­ers includ­ing the Unit­ed States. 

How­ev­er, build­ing on these ground­break­ing moments leaves the future of the space with a lot of promise. BeIn­Cryp­to spoke to experts in the space on their pre­dic­tions for decen­tral­ized finance in 2022. 

Investment and Adoption

This past year was mon­u­men­tal for new invest­ment into the cryp­to com­mu­ni­ty. Both indi­vid­u­als and insti­tu­tion­al investors cre­at­ed a bull­ish atmos­phere of excite­ment and demand. 

As pre­vi­ous­ly men­tioned, it’s not just peo­ple and insti­tu­tions invest­ing in the space but entire coun­tries. El Sal­vador made it clear that Bit­coin isn’t just a fad. Rather, that it’s some­thing that can be used at a nation­al lev­el. Indus­try experts Mar­co De Rossi, co-founder at HAL.xyz and founder of WeSchool, a lead­ing Ital­ian EdTech com­pa­ny, and Jori Arm­bruster, CEO of Ethichub, see this con­tin­u­ing in 2022. 

Accord­ing to De Rossi, when it comes to finan­cial prim­i­tives, there are two major dynam­ics investors should care about.

“In a post Covid finan­cial con­text, cen­tral banks con­tin­ue to print mon­ey and sov­er­eign states are imple­ment­ing strong relaunch invest­ment plans (the EU Recov­ery Fund is €800bn, the US is invest­ing tril­lions). This push­es infla­tion and pri­vate invest­ments: in 2022, with bonds returns near to zero, DeFi returns will remain an El Dora­do, togeth­er with any STEM-relat­ed equi­ty mar­ket. Insti­tu­tion­al giants will con­tin­ue to invest main­ly indi­rect­ly, so more and more blend­ing play­ers (cryp­to asset funds, deriv­a­tives indexed to cryp­to, cus­to­di­ans) will be born to enable that.”

Arm­bruster com­ment­ed that this next year will bring more DeFi con­nec­tions and investors, espe­cial­ly after El Salvador’s example. 

“2022 will also be the year of con­nect­ing DeFi to the real world econ­o­my. The suc­cess of El Sal­vador adopt­ing Bit­coin will cre­ate a cas­cade effect for oth­er coun­tries to adopt Bit­coin and/or maybe oth­er cryp­tocur­ren­cies as their legal tenders.”

More­over, he said the demand for decen­tral­ized cross-chain solu­tions will grow. 

“Along­side this, the mul­ti­chain real­i­ty will con­sol­i­date in 2021, and will demand more decen­tral­ized cross-chain alter­na­tives. This is why cross-chain solu­tions will be one of the hottest trends in 2022.”

Clarity

Along with the many tri­umphs for the decen­tral­ized space in 2021, there were major moments of unclar­i­ty. This came with the dan­gling prospect of cryp­to regulations. 

Johannes Schweifer, CEO of Cryp­to Valley’s CoreLedger, believes that this year will bring a much need­ed clar­i­ty for the space. 

“2022 will cer­tain­ly see greater clar­i­fi­ca­tion on nation­al reg­u­la­to­ry frame­works, for bet­ter or for worse. At this point, the cryp­to and blockchain phe­nom­e­non can­not be ignored any longer. Coun­tries are being forced to either sup­port, or sup­press the tech­nol­o­gy. While large coun­tries like Chi­na have already made their stance clear, small­er coun­tries and devel­op­ing regions have a lucra­tive win­dow of oppor­tu­ni­ty to attract inter­na­tion­al busi­ness and evolve their economies for a dig­i­tal future.”

More­over, this clar­i­ty will not come only regard­ing reg­u­la­tions, but use cas­es in var­i­ous col­lid­ing industries. 

“Sup­ply chain dis­rup­tions and envi­ron­men­tal issues were con­stant top­ics in 2021, and opened up new con­ver­sa­tions in the blockchain space. The case for blockchain-based logis­tics solu­tions and local man­u­fac­tur­ing became even clear­er as the glob­al sup­ply chain was stretched to the break­ing point by short­ages and delays.”

Gun­nar Jaerv, the co-founder and COO of First Dig­i­tal Trust (FDT), believes this year will include more coop­er­a­tion. Both lead­ers in the cryp­to along­side major reg­u­la­tors will need to come togeth­er for a clar­i­ty which serves all parties. 

“In 2022, we will see more founders and lead­ers in cryp­to sit at the table with reg­u­la­tors to set out clear­er reg­u­la­to­ry roadmaps, which is cru­cial in accel­er­at­ing the indus­try. More gov­ern­ments will recog­nise that flex­i­bil­i­ty and col­lab­o­ra­tion bring greater finan­cial ben­e­fits to local economies. Either in the form of tax or employ­ment oppor­tu­ni­ties for cit­i­zens in the industry.” 

Education 

How­ev­er, there can­not be clar­i­ty and increased invest­ment and adop­tion with­out fur­ther­ing cryp­to edu­ca­tion. De Rossi reit­er­at­ed the need for more cryp­to-relat­ed EdTech projects to close this gap. 

“There is also still a strong skill mis­match between tal­ent demand and sup­ply in the space. How can we train mil­lions of peo­ple in a short time on the basics of cryp­to space? To solve this, many cryp­to EdTech projects will flour­ish in 2022.”

Addi­tion­al­ly, Hisham Khan, the founder and CEO of Aldrin, com­ment­ed on the pow­er of NFT/Metaverse devel­op­ments to edu­cate and spark inter­est in the space. 

“What’s excit­ing for most investors would vary, but we can’t deny the pow­er of NFT/Meta­verse based projects to onboard new users who aren’t finan­cial­ly savvy. There are peo­ple that will be excit­ed about each one of these dif­fer­ent sec­tors; for instance, NFTs would appeal to some­one who’s into art. While we were build­ing finan­cial prod­ucts for the last few years, and it found its use case with many peo­ple, it seems like NFTs have real­ly start­ed to grab the atten­tion of the more day-to-day kind of folks and the aver­age per­son, as that is some­thing that they can relate more to. We’ll see a trend in which DeFi will be pri­mar­i­ly adopt­ed by insti­tu­tions and NFTs by retail investors until a DeFi project can ful­ly inte­grate with day-to-day.”

Crypto Continues 

There is one thing that is cer­tain, 2021 showed the main­stream that cryp­to is here to stay. More­over it showed the pow­er of decen­tral­ized solu­tions in an ever dig­i­tiz­ing and sur­veilled world. While 2022 just began, the year ahead for cryp­to looks bright. 

Disclaimer


All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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