Crypto Currency News
Ethereum Classic

Bitcoin ended a record year, but ’22 could be a challenge

It’s no secret that Bitcoin had a stellar 2021. In fact, the year ending was a record year for the cryptocurrency. It is clear that ’21 marked the year Bitcoin became the leading mainstream cryptocurrency in the United States and the rest of the world. Despite China banning crypto mining this year, Bitcoin still performed well, rising to an all-time high of $ 64,400 in early November.

Bitcoin has since fallen to $ 47,000, but there is still a lot of hope for the future. The question is whether Bitcoin holders and those looking to invest in the cryptocurrency will make a bundle of money investing in Bitcoin in ’22 or if it is better to wait for the arrival of ’23.

An uncertain future is ahead

Cryptocurrency experts and economists are struggling to predict what ’22 might hold in store for Bitcoin. There are rumors that the US federal government will, at least in part, take action against crypto with regulations. Although it is technically illegal to use an alternative currency to the U.S. dollar (USD), Bitcoin holders and other crypto investors shouldn’t have to worry about the U.S. federal government putting the kibosh on crypto, as is the case in China was. In fact, several members of Congress responsible for drafting the language of the nation’s laws are also Bitcoin holders.

The question is how deep will crypto regulations go. It also begs the question of how quickly crypto will be adopted as a digital asset by institutional investors. Some wonder if Bitcoin and other cryptocurrencies will be seamlessly integrated into existing financial systems in a year or less.

The moral of this story is that there is no certainty with any type of investment, be it bitcoin, another form of crypto, a stock, or an ETF. Bitcoin is certainly volatile, but the same is true of the stock market, which has fluctuated widely since the pandemic began.

Additional notable Bitcoin hurdles

Aside from the potential for crypto regulation, there is also the possibility that Bitcoin will encounter problems in the form of additional competition in ’21. Ethereum could easily take some of Bitcoin’s market share. Former Twitter CEO and co-founder Jack Dorsey left the platform to focus on making it easy to use countless crypto payments, which means Bitcoin has more competition than some assume.

All in all, Bitcoin is worth less than 50% of the overarching crypto market. Bitcoin’s market value is $ 900 billion. However, the entire crypto market is worth a whopping $ 2.36 trillion in total.

Will Bitcoin Evolve?

There are also industry-wide concerns that Bitcoin will stagnate rather than move forward. Bitcoin has been slow to improve its design when compared to Ethereum. If the mysterious Bitcoin founder Satoshi Nakamoto rests on his laurels and the cryptocurrency doesn’t prove to be a true innovator, it may not be widely revered for posterity as a futuristic economic foundation for stable global trade.

Bitcoin holders should stay optimistic

Bitcoin is likely to overcome the hurdles outlined above as ’22 evolves. Those who own Bitcoin are encouraged to reflect on the achievements of the past year. The cryptocurrency can now be used to buy Tesla cars. Professional athletes and celebrities like Matt Damon appear in commercials and other ads promoting the virtues of crypto.

Even the famous investment guru Cathie Wood from Ark Investments added crypto to her portfolio. The ever-increasing tide of the crypto industry has the potential to increase Bitcoin and other cryptocurrencies in ’22 and beyond.

Comments are closed.