The first few months of 2022 have already seen some major shifts in crypto markets, with Bitcoin and other cryptocurrencies seeing repeated drops and recoveries. Several key trends are expected to drive the market over the course of 2022. Here’s what they are and how you can invest to take full advantage of them.
Moving Towards Greener Blockchain Technology
The energy problem is one that still has a lot of people saying blockchain technology won’t make it in the long run. Bitcoin alone uses more electricity than the country of Argentina. However, a different way of handling blockchain transactions is quickly gaining steam and could be the solution to this problem.
Proof-of-stake blockchains don’t use the same energy-intensive system that the proof-of-work blockchain of Bitcoin and other conventional cryptocurrencies use. Ethereum is expected to make the switch this year, making it a good investment choice. Current proof-of-stake cryptocurrencies include Solana, Cardano, and Algorand.
Wider Acceptance as Legitimate Currency
El Salvador made big news in 2021 when it adopted Bitcoin as legal tender, making it a real option for transactions of any kind. This is a major departure from how other countries treat Bitcoin and other cryptocurrencies, which are often taxed as speculative investments or property.
2022 could see other countries make the same move. Bitcoin has seen significant use in Latin American nations, with Mexico, Panama, Costa Rica, and Guatemala all seeing similar increases in use to that El Salvador saw ahead of its decision. Governments will likely stick to mainstream cryptocurrencies, so Bitcoin could be a major benefactor in the year to come. This is true despite the fact that there is significant growth in cryptocurrency-based get-rich-quick schemes like the recent Immediate Edge trading software.
Blockchain Developers In-Demand Across Many Industries
There are countless crypto startups out there in need of qualified blockchain developers. However, we also see many already established companies reaching out for blockchain talent in 2022. These larger tech and finance companies are trying to enter the blockchain space and are pioneering plenty of exciting new projects.
The largest blockchain employers across these companies are PayPal, IBM, Visa, and Amazon. They’re developing a wide range of new blockchain projects that could become huge successes in 2022. Any of their stocks would be a great way to get some blockchain exposure with blue-chip reliability.
NFTs Branch Out to Include New Applications
2021 saw a massive boom in the NFT art scene, with collections quickly drumming up prices for individual pieces well into the millions. However, 2022 could see an entirely new direction for NFTs as we know them. 2021 saw plenty of promises of innovative NFT applications, and 2022 could be the year that we see some of these projects bear fruit.
One area where NFTs are expected to flourish is gaming, and they’re sure to have tremendous synergy with the newly established metaverse concept. The best way to invest in this area is likely to get in on the ground floor. Anyone who can reliably determine which projects will make it big before they get rolling will be able to sell early adopter NFTs for huge gains later on.
Government-Backed Cryptocurrencies
One trend that 2022 could see come into the limelight is the development of central bank digital currencies. These blockchain currencies would be controlled by governments and provide an official digital network for legal tender payments. Many countries have already launched pilot projects, including China and Russia.
However, there are many critics of the technology that fear these digital currencies will take away freedom, as opposed to conventional cryptocurrencies. It’s unclear how investors can take advantage of this trend at this time because nobody knows for sure how well central bank digital currencies and cryptocurrencies will be able to coexist.
