When 2021 began, investors in cryptocurrencies were at risk. Leading Bitcoin tokens rose 309 percent and Ethereum rose 459 percent from a year earlier. But the last huge increase in 2017 was followed by an ice bath in 2018. Was the cryptocurrency market moving towards another sharp correction in 2021? What is the future of Bitcoin now?
The positive market movement in 2020 transferred to strong profits in 2021. Both BTC and Ethereum went higher, followed by thousands of Altcoins experiencing their first taste of mainstream success. It has been a rocky road with many speed bumps, but the general trend of the market has been steadily increasing.
The 2022 calendar answers some of the most important questions left unanswered in recent years and sets the course for digital currencies and their investors in the long run. Here is what to expect.
The future of Bitcoin for 2022
It is not possible to say exactly what will happen to the digital currency market in 2022 and beyond. The number of questions is much more than the number of answers. But by following some of the general trends in digital currencies, you can make better investment decisions as the market continues to evolve.
Three very important details must be observed:
- Regulations in the US and abroad.
- Acceptance in the mass market of encrypted payments.
- Currencies based on bitcoin and other digital currencies.
By developing and resolving these issues, the long-term future of the Bitcoin sector will be shaped. A clearer picture should appear by the end of 2022. However, the series of baby steps that began with the creation of Bitcoin in 2009 is likely to continue for years to come.
A vision of the Future of BTC
One of the reasons we think Bitcoin is such a great choice for investing in is its unprecedented growth. The value of Bitcoin continues to skyrocket, and it shows no sign of slowing down. This trend is especially important to consider in the context of Bitcoin’s role in finance as a whole.
Some major retailers in the US are starting to accept payment in the form of Bitcoin, for example. To us, this is a clear indication that cryptocurrencies are becoming more legitimate and reputable all the time, and there is no sign that this trend is going to reverse anytime soon. Now is, therefore, a great time to start investing in crypto, to capitalize on the opportunity before it becomes so commonplace that it loses some of its value.
In some countries, it’s becoming difficult to pay with cash. Digital forms of payment are becoming increasingly normal and preferred by retailers, and this is part of an overall trend towards digitalization, in our opinion. This is just one of many reasons that cryptocurrency is unlikely to be a short-term fad and should not be viewed as an excessively risky investment choice.
What makes the future of Bitcoin so special?
Unlike other investing software, the future of Bitcoin does not only help you manage your portfolio. The future of Bitcoin can be invested on your behalf. This program has special software that is designed to follow market trends and buy and sell at the right time. That’s why you do not need investment knowledge or digital currency to use the future of Bitcoin.
When we developed the software, our goal was to make something that anyone could invest in. We wanted to allow everyone to take advantage of the tremendous growth that Bitcoin is seeing, even if they do not have the expertise or knowledge of digital currencies.
That’s why we decided to design an application that has an automated trading feature. We have developed the future of Bitcoin to be as accurate and fast as possible and to respond to changes and market trends in real-time. Combine this with the fact that software buys and sells based on logic rather than emotion.
How to invest in the future of Bitcoin
The future of Bitcoin trading allows investors to be exposed to Bitcoin without having to keep the original cryptocurrency. They are similar to futures contracts for a commodity or stock index because they allow investors to speculate about the future price of digital currency. The Chicago Mercantile Exchange (CME) offers monthly cash settlement contracts. This means that an investor receives cash instead of physical delivery of bitcoins after the contract is settled.
Cboe Options Exchange launched its first future Bitcoin contract on December 10, 2017. 2 But in March 2019, it stopped offering new contracts. The future of Bitcoin is 1/10 the size of a standard bitcoin and the future of Bitcoin options. Other sites, such as the Bakkt and the Intercontinental Exchange, offer daily and monthly future Bitcoin contracts for physical delivery.
Understanding Bitcoin Future Investment
The future of Bitcoin trading has many goals for different players in the Bitcoin ecosystem, each of which is unique. For Bitcoin miners, futures contracts are a price-locking tool that guarantees the return on their mining investments, regardless of the future direction of the digital currency. Investors use the future of Bitcoin to protect their position in the cash market. For example, if an investor bets on a bitcoin price increase in the cash market, it may shorten its futures trading as hedging. Therefore, even if the price of Bitcoin moves in the opposite direction to the path specified in their bet, they can still earn money. Speculators and traders, who often enter and exit futures, may use the future of Bitcoin for short-term and long-term profits.
The future of Bitcoin has several advantages of cryptocurrencies. In the future of Bitcoin, Bitcoin will trade on a stock exchange regulated by the Commodity Futures Trading Commission (CFTC), which may give large institutional investors some confidence. For the most part, this digital currency will trade outside the regulatory framework, making it a risky asset for corporate money.
Note that from October 2021, investors can be exposed to Bitcoin without buying or selling futures contracts. ProShares Bitcoin Strategy Fund tracks CME the future of Bitcoin. The Exchange Traded Fund (ETF) started trading on October 19, 2021, as the first Bitcoin ETF.
Why cryptocurrency could be the future of money
In one best-case scenario for 2022, regulators around the world will come up with a global framework for crypto regulation. The Biden administration has put together a highly qualified team to steer the cryptocurrency regulation process led by U.S. Treasury Secretary Janet Yellen and the chairman of the U.S. Securities and Exchange Commission, Gary Gensler. Yellen has been tracking this sector for years, although sometimes taking a skeptical view. Gensler taught classes on bitcoin, Blockchain, and other cryptocurrency topics at the Massachusetts Institute of Technology in 2018.
With highly knowledgeable people setting the tone for future regulations, there’s real hope that a workable system can develop for investors, consumers, cryptocurrency businesses, and traditional banks. Informed regulators will understand crucial and meaningful issues such as the differences between a value storage system such as Bitcoin and a sophisticated ledger with smart contracts such as Ethereum.
As government entities hammer out a legal framework and taxation system, cryptocurrencies could find their way into the digital wallets of U.S. consumers on a large scale. But even though Bitcoin became legal tender in El Salvador in 2021, the U.S. isn’t likely to follow suit anytime soon.
However, many retailers are likely to start accepting payment in cash-like digital currencies such as Bitcoin, Ripple’s XRP, or Litecoin The increased use of crypto should spur regulatory agencies and politicians to take action, and the blockchain systems should also benefit from widespread usage.
These processes will percolate through the crypto market in 2022 and beyond. Investors can’t stand uncertainty, so even an overly strict regulatory framework is likely to be an improvement over today’s ramshackle oversight.
Why cryptocurrency may not be the future of money
A brighter future can delay in several ways:
- Policymakers drag their feet and fail to reach a sensible regulatory framework in 2022.
- They could decide that currencies such as Bitcoin and Litecoin only serve illegal activities and bad actors, and none of it belongs on U.S. soil.
- Retailers might balk at the unpredictable value of digital currencies and insist on traditional cash or credit card transactions instead.
Under any combination of these circumstances, the digital currency revolution can delay by several years. And, assuming it finally does arrive, it might look very different from the Bitcoin-led sea change that gained momentum in 2021. In the very long run, it seems unlikely that any government or group of nations will stop the cryptocurrency idea entirely, but they can slow down the movement and steer the final product in various directions.
These risks might sound hypothetical, but they are very real. In the end, the cryptocurrency community must get along with regulators around the world. Failing to do so can throw massive roadblocks in front of the digital currency sector’s progress.
That’s why you shouldn’t bet the farm on Bitcoin, Ethereum, or crypto in general. The next heart-stopping market move could still be a negative one with echoes of the 2018 crash. Informed investors want to build a diversified portfolio for the long run that can withstand dramatic setbacks in any particular sector.
Conclusion: The future of Bitcoin Outlook
Bitcoin is a good indicator of the crypto market in general because it’s the largest cryptocurrency by market cap and the rest of the market tends to follow its trends.
Bitcoin’s price has taken a wild ride so far in 2021, and in November set another new all-time high price when it went over $68,000. This latest record high follows previous high points over $60,000 in April and October, as well as a summer drop to less than $30,000 in July. This volatility is a big part of why experts recommend keeping your crypto investments to less than 5% of your portfolio, to begin with.
But how high will Bitcoin go? Plenty of experts say it’s only a matter of when, not if, Bitcoin hits $100,000. Bitcoin’s past may provide some clues as to what to expect looking forward, according to Kiana Danial.
Danial says there have been plenty of huge spikes followed by pullbacks in Bitcoin’s price since 2011. “What I expect from Bitcoin is volatility short-term and growth long-term.”