I Analyzed Top 3 Crypto Predictions For The Second Half Of 2022. Here’s What I Learned About Cryptonomics
Every crypto investor should know my findings on the upcoming trends in the later half of 2022.
Imagine if I had told you in 2021 that Bitcoin would crash by more than 70% in eight months. You would have called me a Bitcoin hater.
But this is the harsh reality every Bitcoin enthusiast is facing now.
Major cryptocurrencies like Bitcoin (BTC) and ether (ETH) have shrunk their market cap like it’s nobody’s business. We are staring at a $2 trillion crypto market crash, and the epic downfall of stablecoin Terra’s (LUNA) put the final nail in the coffin.
We are officially into “crypto-winter”. To provide clarity and insight to all crypto investors out there, I analyzed 3 top crypto predictions for the second half of 2022 and here’s what I found.
#1: Governments Are Going To Regulate Crypto
When you were crying about your falling bitcoin investments last month, the European Parliament unveiled the “Crypto Assets Law”, which became the most detailed crypto legislation worldwide.
The United States has released its Framework for International Engagement on Digital Assets. The SEC is increasing its staff for cryptocurrency enforcement. India has proposed to tax crypto assets in its 2022 Budget session.
Of course, you can name countries like El Salvador, which made Bitcoin legal tender. But transactions in the crypto market will be more regularised when major economic hubs of the world (like the UK, US and India) frame laws and regulate transactions.
And as per recent trends observed in the past month or so, crypto will come under legislative purview within 1–2 years. Governments need to take steps to come out of their “legal-tender” ego and accept the faster and more secure form of digital transactions.
Countries like China (and India, too) are making their own form of digital currency. It kind of defeats the spirit of crypto, which is a decentralized system of currency, but at least the citizens can actually use a digital currency to understand its real-world implications.
#2: NFTs are here to stay (Pop Culture Will Fuel Their Growth)
By now, everyone knows that NFTs are the new-age collectables that can help artists and creators authenticate ownership of their creations and earn royalty (if you didn’t, now you can 😉)
The entire pop culture is jumping on the NFT bandwagon. Whether it is games, music, memes or movies, NFT has impacted all of them.
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Anyway, in future (it can be 3–4 years from now), the way you attend music concerts or play online games can be starkly different from what it is now. Many artistic NFT projects around gaming and lyrics are in the making, and they will not bow down because of the crypto crash.
The NFT marketplaces will get more accessible and satisfy the real needs of people (not just random JPEGs), and this will help repose public sentiment around crypto and web 3.0 technologies in general.
#3: Crypto Prices Could Fall Further. Volatility is the new normal.
Experts like Carol Alexander, a Sussex University professor of finance, expect Bitcoin to fall as low as $10,000 in 2022, which would correct all its gains in the past one and a half years.
Money is, even today, largely regulated by government institutions like the Federal Reserve. And as we all know, they messed with their money printing in 2020 and today, we are staring at a recession. Of course, there can be other factors too. But since crypto markets are still dependent on traditional systems for the influx of investments, crypto prices will likely remain low in 2022.
My advice would be not to take heavy positions in crypto as of now and observe the markets closely. As the practical use cases of crypto come out and the government starts regulating this space seriously, investing in digital assets will be much safer and more mainstream.
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What do you think about crypto markets? Are they going to crash even more? Will we find their practical use cases by 2022 end or 2023? Let me know in the comments.
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Have a great day, readers!
