2021 was a productive year despite the volatile market structure. Market value of cryptocurrencies; It nearly tripled, from $800 billion to $2.2 trillion. Some cryptocurrencies have experienced astronomical growth. These astronomical growths caused Bitcoin and Ethereum’s 80% dominance in the market to recede to 60%.
In addition, the steady growth in DeFi and NFT fields indicates that these sectors may strengthen in 2022. metaverse We don’t even need to tell you how quickly a concept like this has entered our lives. DAOs are another important development.
So what will happen in the new year? Let’s share our new year expectations in 5 items.
Although the word regulation may not sound good and frightening, the decentralized nature of the cryptocurrency ecosystem needs some regulation. Many important names in the ecosystem think that regulations will be good for the market if the regulations are implemented in a transparent way.
The cryptocurrency industry is painfully but truely cyber crimes an open space for Many governments want to make the cryptocurrency market more reliable and convenient so that investors do not become victims. But there are also some unpleasant examples here. For example, China has announced that it will make all cryptocurrencies illegal, except for the digital yuan that it will issue.
Cryptocurrency investors and key figures in the ecosystem agree that government regulations should be less aggressive. They excuse clear, but not burdensome tax practices, and want access to cryptocurrencies to be fully legalized. With the increase in the trend towards cryptocurrencies on a global scale, there is an increase in security applications, and cryptocurrencies, so to speak; They want it to come to light under the stairs.
Bitcoin ATMs Will Increase
The decentralized and digital nature of Bitcoin and other cryptocurrencies makes it difficult for people to adopt them as currencies. The adoption process has been going on since Bitcoin was unveiled in 2009, and more and more people are trading with cryptocurrencies today.
Bitcoin ATMs are actively installed and operating in many parts of the world today. The most important advantage that ATMs provide is the “adoption” issue we mentioned at the beginning. The existence of ATMs is a tool that facilitates the perception of cryptocurrencies as a payment and investment tool.
Since 2015, there has been a steady increase in the number of Bitcoin ATMs. This increase accelerated in 2021 and today worldwide There are more than 33 thousand ATMs.
In Bitcoin ATMs, it is possible to purchase BTC with debit or credit cards. This advantage provides convenience to investors who are new to the market or who do not know how to buy BTC from complex exchanges. But getting BTC from ATMs is still high transaction fees requires. This causes investors to turn to more suitable alternatives.
Blockchain technology, as it is known, is a very important invention that lays the foundation of a decentralized structure. This invention has an important handicap, so to speak. The decentralized structure requires many “nodes”, namely computers, to work simultaneously to verify transactions. This multiple work raises environmental concerns.
Environmental concerns about Bitcoin mining are getting louder day by day, and this issue is upsetting the crypto money investor. Bitcoin and many cryptocurrencies work with the concept of proof-of-work, and this concept brings with it a significant energy loss. In addition to the loss of energy, the expiration of the mining equipment and its release to the nature as environmental waste is another matter of discussion.
On the other hand; AVAX, cardano and wither Proof-of-stake concept is used in new generation cryptocurrencies such as these, and this concept will eliminate environmental concerns. Proof-of-stake prevents high energy usage and Ethereum will use this technology together with Ethereum 2.0. With the transition of Ethereum, the world’s 2nd largest crypto money in terms of market value, to proof-of-stake, a significant energy efficiency will be achieved.
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Although we will not see any development in Bitcoin mining in 2022, it seems likely that new crypto money projects will use proof-of-stake technology and be compatible with the environment.
Volatility in Bitcoin Value
Bitcoin is by far the largest cryptocurrency in the world right now. The value of Bitcoin is considered by everyone as an important criterion for the cryptocurrency market.
In 2021, Bitcoin again exhibited a volatile structure. While it was over $60k in April, it fell below $30,000 in June. If in November ATH (an all-time high), making it very close to $70,000. By the end of the year, it could not stand still and fell below 50 thousand dollars. At the moment when the news was written, Bitcoin is around $ 46,075.
Although this variable characteristic in Bitcoin may seem positive for some investors, it may prevent Bitcoin from being fully adopted and creating a safe haven. Bitcoin and cryptocurrencies have not yet reached a certain maturity and this seems to continue in 2022.
for the first time in 2021 BITO ETF (Exchange Traded Fund); When it entered the New York Stock Exchange (New York Stock Exchange), it achieved a volume of 1 billion dollars in the first day. It was a record. The first ETF showed that a significant investor base is indirectly interested in investing in cryptocurrencies rather than directly investing in cryptocurrencies.
You may be interested in: What is an ETF?
BITO does not actually hold Bitcoin in its vault, but provides investors with a kind of futures transaction on Bitcoin. ETF applications, which can be traded one-to-one according to the current value of cryptocurrencies, have already been submitted to the SEC.