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Last year marked another home run for the crypto space. The digital asset revolution gained monumental traction and as proof, hit near three trillion in market capitalization. An NFT boom emerged spurring participation from celebrities and newly formed crypto unicorns, Coinbase went public, the crypto gaming sector expanded and Bitcoin made history by replacing El Salvador’s, previously fiat, national currency.
Will there be more to come? Let’s see which trends are speculated to take the reigns in 2022.
Cross-Chain
Cross-blockchain protocols are predicted to flourish in 2022 primarily because of the level of interoperability enhancement this technology brings to blockchain-communication. On the radar and recognized for sophisticated data transfer and communication intelligence are the Binance Smart Chain Bridge, Solana’s Wormhole Bridge and Avalanche Bridge plus, the Tezos Wrap Protocol Bridge - all of which have been in the works for some time but as of late, have experienced significant upward momentum.
To take things a step further, Polygon and Arbitrum are currently working on multi-chain ecosystems. This significant, new development is what can be considered next-generation technology given the complexity of these projects. Multi-chain ecosystems, which allow several blockchains to be interconnected from the get-go, are in incubation to increase user experience and efficiency. These ecosystems will require cross-chain protocols to function. May the best cross-chain protocol win.
All of these will lead us to a new reality and the next level of Web 3.0 when users will be able to send cryptocurrencies from one chain to another as everything will be connected.
More Metaverses
The Metaverse is here and it’s very true for 2022. The metaverse in 2021 was trendy in sectors like gaming, fashion, sports and art. This year the metaverse will take a more substantial part in the marketing strategies of FMCG companies, retail and even banks.
We will likely soon experience “cross-everything.” The decentralized metaverse will allow users to earn NFT’s in Axie, a crypto game, and use it while shopping for groceries in retailers like Whole Foods.
The metaverse has not only prompted NFT use but it's also disrupting and revolutionizing the brand space. Brands are trying to fit into this new world paradigm by building their own metaverses and connecting them to other virtual worlds. The number of metaverses is expected to triple at the very least this year.
Gaining Institutional Trust
Even though there is still a low level of trust amongst institutional investors towards the crypto space, this year will bring more of them into the fold.
A survey from Fidelity in 2021 found that more than half of institutional investors in Asia, Europe and the U.S. currently invest in digital assets - and a majority also expect they will in the future. For example, Morgan Stanley is giving wealthy clients access to crypto investments through funds, limiting it to those with $2M and a high-risk tolerance. ​​Goldman Sachs has restarted its cryptocurrency desk amid the Bitcoin boom.
The bearish market expected to hit some time mid-year will bring more of Wall Street into crypto - it will be a good time to start investing into traditional cryptocurrencies like Bitcoin and Ethereum, or invest capital into cryptographic indexes, such as Sumcoin.
A New Gold
Goldman Sachs recently stated that Bitcoin will be in the running to take market share away from gold in 2022, as digital assets become more widely adopted.
Citing Bitcoin's $700 billion market capitalization, compared to around $2.6 trillion worth of gold owned as an investment, Goldman Sachs said that cryptocurrency currently has a 20% share of the "store of value" market. The term "store of value" usually describes assets that can maintain their worth over time without depreciating, such as precious metals or some currencies.
The possibility for Bitcoin to achieve a status akin to that of new gold will bring relative stability to the whole crypto market and furthermore, develop trust in other coins.
Autho bio
Tony Miller is CEO and Founder at BMCS, the First Crypto Investment Fund For Sumcoin. Tony has a unique background in running public companies and deep expertise in traditional investment as well as in the crypto space.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.