Will 2022 Be A New Age For Bitcoin & Other Cryptos?

• After trading in a range-bound for years, Bitcoin showed massive uptrends from 2020. Many investors who held onto Bitcoin, brought around 2009, might have seen a growth of more than 5,000,000%.

• Bitcoin has seen a broader adoption as a financial asset, but being a young cryptocurrency, it might not serve 200% annual returns as it did in the past.

• Bitcoin is expected to face a massive adoption in 2022, and the per day transactions might also increase rapidly. It is also predicted to have lower price volatility than ever before.

Ever since Bitcoin was founded, with the white paper being released in 2008, Bitcoin has constantly challenged the doubt of seeing a digital currency that might exist simultaneously with fiat currencies managed by central banks. Bitcoin hasn’t been adopted as an alternative to the U.S. Treasuries or gold or as a store of value, which forces investors and crypto enthusiasts to struggle about defining Bitcoin. Some other factors that affect defining Bitcoin include the crash of 2017 and high volatility. Bitcoin has also been contrasted with the new-economy tech stocks from the 1990s.

The Nasdaq collapsed in 2000 as investors realized the rising valuation of tech shares. A huge comeback was seen after ten years of the collapse as organizations like Apple, Microsoft, and Facebook became entwined in daily life and proved to be massively profitable. The first regulatory authority that provided support to banks for serving custodial services regarding crypto in 2020 was the OCC (Office of the Comptroller of the Currency) which was then followed by the Congressional bills and state laws to define boundaries and legislate the industry for DAO (Decentralized Autonomous Organization) and DeFi (Decentralized Finance).

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Bitcoin Grew From 2020

Following range-bound price movement for years, Bitcoin went bullish in 2020. The Medley Global Advisors’ macro strategist, Ben Emons, said that “it was driven by investors’ realization that the pandemic was thrusting the digital payment system forward and Bitcoin was viewed as its bellwether. Institutional investors adopted Bitcoin as an alternative asset class, and significant flows of institutional money poured in.”

Bringing Regulation In Crypto Industry

Emons further explained that he believes cryptocurrency adoption will speed up in 2022. He also said that bringing a significant regulator for the crypto industry like the SEC (Security Exchange Commission), congressional legislation for cryptocurrency, and the future central bank digital currency might eliminate the lack of regulatory clarity and result in a broader acceptance of cryptocurrencies and Bitcoin in the U.S.

Deploying blockchain software over the cloud with no effort has made it easy to enter and launch cryptocurrency exchanges in the ecosystem. Today, there are infinite cryptocurrency exchange platforms that support the trading of Bitcoins, Bitcoin investment trusts and exchange-traded funds have helped Bitcoin reach the nonprofessional audience as well.

The Unstoppable Crypto

Even though the U.S. lacks a clear regulatory framework, crypto hotspots of the U.S. and Miami have proved that Bitcoin adoption can’t be stopped at any cost. Investors who did predict this have seen a compound annual growth rate of more than 200%, also investors who purchased Bitcoin around 2009 and trusted it by holding on to the volatility have gained a massive return of 5,200,000%. Where Amazon stock has delivered a return of 68,000% since it was listed, and Apple & Microsoft delivered about 200,000%, the digital asset’s returns have proven to surpass the returns of financial assets. However, Emons believes that returns like this are improbable to happen again.

Even though Bitcoin is tradable across several unregulated exchanges, the number of transactions in the Bitcoin ecosystem has fallen to 250,000 per day, however, the number is expected to reach 200 million transactions per day in 2022. The fact is that Bitcoin has developed enough and has now been adopted as an alternate asset class. This adoption and development has brought sufficient potential to raise Bitcoin’s valuation in dollars with far less volatility compared to the past.