The Digital Currency Market in 2022: A Brief Guide
The digital currency market saw some extreme highs in 2021, reaching an all-time high of 69,000 US Dollars towards the end of the year. However, the start of the year 2022 hasn’t been kind to digital currencies as Bitcoin plunges 15 percent while Ethereum tumbles 20 percent in value. Unlike a precious metal investment, crypto can be highly volatile with several factors that may affect its performance.
We’ve listed some of the changing trends of cryptocurrency and explained how these trends might factor into increasing or decreasing the value of the digital currency in 2022.
Digital Currency to Look Out For
2021 saw one of the most shocking revelations in digital currency when the renowned entrepreneur and owner of Tesla, Elon Musk, managed to boost the price of “Doge Coin” with just a tweet.
We see this trend continuing in the years to come as many investments will be fueled by public sentiment, which gives value to meme currencies like Shiba Inu, Mongoose coin, or the popular Dogecoin. You shouldn’t be shocked if you heard about how internet users propelled the prices for these cryptocurrencies to unprecedented heights.
More retailers and supplies started to take payments in crypto, which brought in strict regulation procedures from many governments and world authorities. World superpowers are beginning to look into the matter and scrutinize the monetary status of these currencies.
The new regulation may significantly affect the prices due to the uncertainty behind these changes and their nature. But one thing is for sure; there will be a high number of fluctuations in an already volatile market, so patience will be the key.
One of the factors playing to the disadvantage of crypto is its impact on the global environment. Crypto mining requires high-performance computers that have to be operated non-stop to solve certain equations, which generates crypto coins.
These computers utilize vital non-renewable energy, which is becoming a concern for environmental activists worldwide.
Future of Decentralized Financing
Decentralized Financing or DeFi is quickly making its way to the global financial ecosystem. Future technologies are said to emphasize this financial system which may persuade fintech companies, as well as banks, to use the DeFi system.
We’ve already heard about top gaming engines and platforms rewarding the players with hefty cash amounts for their contributions. A growing trend has seen these platforms offer crypto tokens as value for people’s time playing the games. This increases the potential for crypto financing for broader blockchain infrastructure.
Our professionals have extensive knowledge of gold and silver investment for a reliable precious metals IRA account. We’re also experienced in the latest investment trends and offer consultations for a diversified portfolio.