2021-2022 was a real test for the cryptocurrency market. People realized how important investments are to make a financial reserve, a so-called cushion. In addition, people spent less on entertainment, clothes, and travel, and many decided to invest the money they saved.
Therefore, even those who were far from cryptocurrencies and preferred traditional types of investing got interested in this topic.
The unprecedented demand for crypto led to a crazy rise in the price of not only major coins but also those that were predicted to have less prospects.
But in 2022, the cryptocurrency market was also hit by a crisis, probably the most significant since its existence. Bitcoin collapsed from $68,000 per coin, to $17,000. Due to such a “roller coaster” rate, it is reasonable to ask what will happen to the cryptocurrency and what its prospects are.
Regulation of cryptocurrency – why it is so actively discussed in the world
Talks about the need to regulate the crypto market have been going on for a long time, but somehow sluggishly and not very loudly.
But after the collapse of Terra and Luna, it became louder and more confident – investors, who had invested solid funds in these coins, were left with nothing in a matter of days.
But that happened back in May, and since then the market has continued its free fall.
Cryptocurrency companies began laying off employees and cutting costs, and some, like Three Arrows Capital and Celsius, declared bankruptcy altogether.
In light of recent events, many experts have started talking about the inevitability of the regulation of cryptocurrencies. Markus Sotiriou, an analyst at GlobalBlock, says that regulation is inevitable, and one should be prepared for it.
According to experts who are in favor of controlling the crypto market, it can make crypto more attractive for investors and less interesting for cryptocriminals.
What does regulation of the crypto market mean for investors
The stability of the crypto market will bring new players to it, and this will have a positive effect on its condition. So far, not all large companies are considering the possibility of accepting payments in cryptocurrency.
For example, such giant as Amazon is just taking its first steps in this direction, while Tesla has long been accepting bitcoins and other currencies.
Stability and centralization will bring new companies into the field. Of course, mass payments in crypto for goods and services are still only dreams, but for long-term investments, cryptocurrencies with the regulation will become even more promising.
While some experts rejoice and see a future in such regulation, others say that centralization of management is the destruction of the very nature of cryptocurrency. What makes it unique and attractive is that the crypto market has no such regulation.
They also say that regulation will destroy the most attractive feature of the crypto market: anonymity. Today you can have a huge fortune in coins, but no one will ever find out about it unless you tell them yourself.
Regulation will make complete confidentiality impossible, and that, according to experts, will lead to a significant investor outflow.
Therefore, a problem arose – on the one hand, regulation is necessary because the crypto market has reached a scale where it is no longer possible to function without management, on the other hand, it contradicts the very nature of cryptocurrencies.
Experts see the way out in self-regulation, that is, putting management functions in the hands of companies and major exchanges.
Consumers and investors are not thought to favor industries with self-governance. But recent studies show that they are even less favorable to state institutions. In addition, self-government is more attractive to companies that want to enter this market, but neither its decentralization nor state control attracts them.
Summarizing all of the above, we can state that the future of the crypto market is uncertain, but we should not expect changes in the near future. Global reforms and transformations are a long process. So, what should investors do now, what will happen to bitcoin and other popular currencies? What to invest in so as not to lose everything?
What awaits bitcoin in the near future
Bitcoin is not only the first cryptocurrency. It is an indicator of the market as a whole. It is believed that what happens to this coin happens to the crypto market as a whole. Let’s analyze – in November 2021 bitcoin was worth $68 thousand and in May 2022 it will be worth $17,5 thousand. Along with bitcoin, other coins also collapsed.
Opinions of experts differed greatly in forecasts. Some of them are sure that bitcoin will fall to 10 thousand dollars, others are sure that it hasn’t reached its maximum and that 100 thousand dollars is not the limit yet. And many agree that the last figure – this is not a forecast, but reality, the only question is when it will be reached.
Be that as it may, professionals advise to refrain from rash steps. You should not keep more than 5-7% of savings in cryptoassets if you consider crypto for long-term investments.
According to Kiana Danyal, author of the bestseller “Cryptocurrency Investing for Dummies,” you can predict the future of bitcoin by looking at its past. The coin was already showing huge jumps in 2011, after which the price would fall. But the growth eventually recovered. From this, we can conclude that bitcoin volatility is short-lived. Strong and long-term growth awaits us very soon.
What awaits the Ether in the near future
Speaking of this altcoin, the first thing to say is that it is on the verge of a huge change. The fact is that Ethereum is on the verge of a global upgrade.
The technology will be switched to a less energy-consuming version. The developers have been preparing for this event for 7 years. They have been running tests, fixing bugs, and as a result, The Merge update promises to be a breakthrough.
Experts believe that if all that the developers announce, it will be possible to implement, then the future of Ethereum is bright. According to some estimates, the coin may reach its maximum of $4,000 by the end of this year. But the boldest forecasts promise the currency to cross the threshold of $12 thousand in a year.
What are experts, professional investors, and crypto players doing now? They carefully watch the coin and buy it up.
After the update, the growth of the rate is inevitable, the way it will not be so sharp and jumpy, as some experts predict, but it will be in any case. Even if the developers will not be able to fully implement their ambitious plans, the near future of Ethereum is promising.
If everything is more or less clear with the two major coins, the answer to the question of the most promising cryptocurrencies in 2022 is waiting for many.
What cryptocurrencies to look out for in 2022
We are not going to talk about the benefits of buying bitcoin at its lowest price or how promising it is to invest in Ethereum at the threshold of its renewal. We will talk about those coins that have potential according to experts.
Speaking of this currency as one of the most promising, it is worth to spend some facts. In mid-2020, the currency started at $0.05.
In November 2021, when the crypto market was at its peak, the currency was trading at $8.4, with a profit of 16000%.
Today, like the entire crypto market, SAND is experiencing a significant decline. But the prospects and potential of the coin are huge. Therefore, who buys it now at a price much lower than its peak, can count on large dividends in the future.
What makes the coin unique? Its developers promise nothing less than a combination of real and virtual worlds with the help of NFT technology. Even now, users can travel around the world of Sandbox, to interact. You can create your own characters and take part in games to earn money on this.
Experts advise not to pay much attention to this cryptocurrency’s past. In 2020, the developers had problems with the U.S. Securities and Exchange Commission, which could not but affect the price of the coin, which dropped XRP from the third to the sixth place in the market valuation.
The currency can now be bought for a minimum. Analysts now predict that investors who invest $1 a token in XRP could make a handsome profit. The price is expected to rise to $2.14 within a year.
Speaking of promising cryptocurrencies, we could not ignore meme currencies. The most popular and promising among them is SHIB. Created as a joke in 2020, the currency was a development of Metaverse. Today this coin is called the “Dogecoin killer”.
Experts’ opinions about this cryptocurrency are divided. Some believe that all currencies, without exception, are memes and their popularity is a social rather than financial phenomenon, while others believe that there are reasons for the growth of the rate. Anyway, Shiba Inu is in the top 20 cryptocurrencies by capitalization.
It is difficult to talk about the future of such a volatile but attractive market as cryptocurrencies. We all see from examples that you can become rich in a very short period of time, and you can lose everything in a matter of days.
What the regulation of this market will look like, what kind of growth or further decline we will see, it is difficult to predict even now.
But in any case, the crypto market will develop and now there is a great opportunity to be at the origins of a new story. In what currencies to invest, everyone decides for himself, but to bet only on this asset for investment, still do not.