The cryptocurrency sphere is expanding and moving beyond the shadows of Bitcoin (BTC) and Ether (ETH). Wider acceptance of cryptocurrency and the blockchain technology on which it is based will be spinoffs for other sectors of the economy.
Cryptocurrency Gaining Wider adoption
Industry participants said that the broad adoption of crypto-related technology could drive further growth in 2022, while competition is also increasing among different blockchains and sectors.
Devin Ryan, director of financial technology research at investment bank JMP Securities, feels that the last year has proved that crypto is here to stay. He was talking to marketwatch.com and said that the market and the current economic regimen are slowly changing to accommodate it. As a result, there is a powerful interest in making the present endeavor a success.
More players and hence greater competition
The biggest event which marked the coming of age of cryptocurrencies was the adoption of Bitcoin as a legal tender by El Salvador. Many big players like Amazon, Visa, Walmart, Fidelity are hiring experts for cryptocurrency-related roles. Today’s total cryptocurrency market is worth $2.39 trillion, and ETH and BTC account for only 50% of this figure. In other words, many new players and different forms of crypto-related instruments like NFT, ETF, and Stable Coins are also entering the arena.
More crypto-related businesses are going public in 2022. Thus there will be a fresh influx of finance. These include exchanges from digital asset miners to payment companies. As the market expands, one can expect new listings and shift as companies win and lose market share.
Diogo Monica, president, and co-founder of Anchorage Digital, the first federally chartered crypto bank, feels immense possibilities for the crypto and Blockchain, much beyond the most widely known cryptocurrencies like BTC or ETH.
Authorities call for more regulation
Cryptocurrencies are based on Blockchain and decentralized finance. This anonymity makes it ideal for fraudsters and terrorists. However, anonymity also puts forth some problems. Therefore there are calls for better regulations. However, this is a two-edged sword, and more regulations would again lead to the problems plaguing the current financial regimens. However, with time and as the industry matures, a solution to these problems could be arrived at.