As 2021 draws to a close, cryptocurrencies are now just a stone’s throw away from becoming a fully valid part of mainstream finance, according to some analysts.
This year was marked by huge events for crypto: El Salvador’s adoption of bitcoin as legal tender, China’s major crackdown on crypto-mining, India’s threat to ban all private cryptocurrencies, big investors entering the crypto game, and Facebook going all-in with its metaverse. And, overall, it was a time of wild swings and record prices.
If countries take a hostile stance, adoption will be much slower, predicts Witek Radomski, co-founder of blockchain platform Enjin.
The price of ether – which is second only to bitcoin in terms of market capitalization – will rise at a much faster rate than its rival, due to the move to proof of stake, according to Tom Higgin, CEO at asset management platform Gold-I.
Initial game offerings will become popular, says Nick Saponaro, co-founder and CEO of decentralized payment ecosystem Divi Project, and larger organizations such as GameStop and Epic will begin making plays at some point next year.
Bitcoin will gain the upper hand over stocks in 2022, opines Mike McGlone, head crypto analyst at Bloomberg Intelligence.
A remote-first Fortune 500 company will declare its official headquarters to be on one of the competing metaverses, predicts Brandon Arvanaghi, CEO of crypto startup Meow.
And the metaverse will become the new interface via which people engage with the web and each other, says Justin Banon, co-founder of decentralized network Boson Protocol.
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Most people will conduct their day-to-day jobs partially in the metaverse, according to Shane Molidor, chief revenue officer at digital asset financial platform AscendEx.
There will be a battle between the metaverse used by crypto-natives and those launched by gaming and corporate entities such as Meta, predicts Brock Pierce, chair of the Bitcoin Foundation.
Investors will start using bots to make purchases during non-fungible-token minting events, which may shut out less sophisticated users, opines Ethan McMahon, economist at blockchain data platform Chainalysis.
Crypto-economy market capitalization will rise from a peak of $3 trillion in 2021 to over $7.5 trillion, according to Rohit Talwar, CEO at insight and research business Fast Future, and at least 25 nations will be using a central bank digital currency by the end of 2022, either their own or one issued by another country, such as China’s digital yuan.
Banks will look to crypto for fraud trends, says Chris Stephens, head of fraud and security analytics at identification platform Callsign.
The world’s first billion-dollar hack is on the cards, as decentralized finance activity burgeons, according to Benjamin Whitby, who oversees regulatory affairs at cross-chain protocol Qredo.