Bitcoin hit all-time-high prices in 2021, but then there were a few large drops. Plus, Ethereum soared to a new high that year, too. From there, the US government is looking to add some new regulations for all cryptocurrencies.
However, that hasn’t changed people’s minds. They are more interested in crypto now than ever before. Though investors have always enjoyed it, the popular culture is getting involved. If you’re interested in online trading, bitcoinprime.software is the best platform to consider.
In various ways, 2021 was the breakthrough year. The crypto industry has more focus and attention now than ever before.
Still, the industry is constantly evolving and in its infancy stages. That’s why most Bitcoin highs come with huge drugs. It’s hard to predict the way things might go in the long term, but a few experts weigh in:
The US government is showing a bigger interest in regulations for cryptocurrency. Lawmakers want to establish guidelines and laws so that crypto is safer for investors.
Some people want some sort of regulation because it prevents cybercriminals from using the blockchain for nefarious means. However, others worry that getting the government involved may end up creating huge taxes and other problems associated with fiat currency.
In fact, the IRS already has some rules in place. It wants to get its hands on the money earned and traded through cryptocurrencies. That means more work for the exchanges to issue tax forms, which could be seen as a good or bad thing.
Crypto ETF approval
The first Bitcoin ETF made its way to the New York Stock Exchange in October 2021, so that’s a huge breakthrough. Investors can now buy cryptocurrency directly from investment brokerages. If they have accounts already, it streamlines the process.
However, the BITO ETF isn’t enough because it doesn’t directly hold the Bitcoin. Instead, it maintains the Bitcoin futures contracts. While these follow the general trends, they might not accurately track the price of Bitcoin.
Many people prefer to trade Bitcoin CFDs. It’s a quick and fun way for investors to guess how the market might do.
Institutional adoption of Cryptocurrency
Mainstream businesses in various industries are taking interest in blockchain and cryptocurrency. For example, AMC announced that it plans to accept Bitcoin payments at the end of 2022. Square and PayPal (Fintech companies) bet on crypto and allow users to buy it from those platforms.
Along with that, Tesla holds billions of dollars in crypto assets. However, it can’t make up its mind to accept Bitcoin payments or not. Experts feel that this is likely to continue throughout all industries.
Many companies are paying attention now, which drives growth for the crypto industry.
Global corporations might jumpstart the adoption in 2022. For example, if Amazon bought into it and accepted Bitcoin payments, it might create a chain reaction for others to consider it, adding more credibility to the mix.
In fact, Amazon has sparked recent rumors by saying that it might post a job for a blockchain and digital currency product lead. Walmart also wants to recruit someone to oversee its own blockchain strategy.
What does that mean for investors? It’s unclear right now. However, if people feel comfortable paying for goods in crypto, and it’s accessible, that could impact Bitcoin prices. If you purchase Bitcoin for the long-term store of value, it’s better for it to have real-world uses to increase the demand and value.
It’s easy to speculate on the value of cryptocurrency for investors in the next few years. However, it’s still a speculative and new investment. There isn’t much history about it to base your predictions on. Regardless of what experts think, it’s still up to you to determine if that risk is worth it for your investment portfolio.