Trends that will change the future of crypto 2022

The crypto market took off at the beginning of 2021. Analysis shows that the total profit of cryptocurrencies has exceeded about $1.2 trillion. With the prices skyrocketing and going downhill one after another, about 1000 new currencies were added to the list of cryptocurrencies  App every month in 2021 alone.

Moreover, the number of crypto investors is touching about 300 million globally. This rapid growth rate is not surprising, as the factors influencing it are pretty obvious. Despite all sorts of hurdles plotted by governments worldwide, the crypto market is blooming.

One of the major causes for the constantly excelling crypto market is the increasing interest of global brands like AMC and PayPal. 

Not only have these brands taken the initiative of investing in crypto and building their digital assets, but they have also announced to accept cryptocurrencies as a means of payment. 

These initiatives and much more are proving to be the stepping stones along the progress journey of crypto. As a result, investors and analysts hope that crypto will become more understandable and step into the mainstream by the end of 2025.

Although the crypto market is highly volatile, and much can’t be predicted even about the near future, specific trends help us guess what the future may hold for crypto. A list of future trends that we think may affect the future of crypto are:

Tax regulations 

We cannot predict much about the regulations regarding crypto yet. It is mainly because the number of countries that have accepted crypto is negligible compared to the ones that haven’t.

Delayed and no regulations are as much of a threat to the safety of investments as strict regulations. No regulations mean the country hasn’t announced crypto as legal or illegal. This is a risk as the government may declare it illegal. 

In addition, setting up uniform regulations globally is also very significant. For example, it would be unfair to place heavy taxes on crypto in one country while none in the other. 

However, it is expected that governments that have placed bans on crypto will lift them soon due to the increasing popularity of cryptocurrencies. In addition, institutional adoption has also been seen to play a vital role in the future life of bans and the acceptance of crypto as a means of payment. 

Increasing taxes

Every plus side comes with a downside. The need for regulations is one factor. Another very significant one is the risk of strict regulations. Heavy taxes in terms of regulations will reduce the mainstream usage of crypto and ultimately slow down its growth rate. 

This role of heavy taxes will limit the use of crypto in developed countries like Singapore and Japan. 

When it comes to trading software, the bitcoin trading software is a notable name used for cryptocurrency transactions. It is famous for automatically swapping cryptocurrencies with other available traders, helping them benefit from the value fluctuations in the currency. Moreover, investors can easily track current prices and trade the currencies on demand.

Growth of the NFT market

The NFT market has allowed artists and creators worldwide to participate in its decentralized trade. Such funding technology has given artists access to finance their art. The NFT blockchain technology is also secure and validates the ownership of digital art.

The growing popularity of NFTs among artists and celebrities is expected to increase the prices of various cryptocurrencies overall. 

Transaction costs 

Analysts have observed a gradual increase in the transaction costs of cryptocurrencies. Therefore, transaction costs are expected to increase. 

Another factor responsible for the increasing transaction costs is the upgradation of crypto technologies. The latest technologies require more resources and hence cost more bucks. This trend of transaction costs has both upsides and downsides.

The downside is that crypto will lose a point against the fiat currencies. Previously, fiat currencies had higher transaction costs, leading to increased demand for cryptocurrencies. However, on the bright side, these transaction costs will favor the players in the crypto industry.

Conclusion 

Ultimately, there still needs to be a lot of research about the crypto market to come to a point where we would be able to make rock-solid predictions. Crypto is a relatively new marketplace, where trends will take a few more years to set up. 

After all, it is an investment solely by keeping your risk tolerance in mind.