What will happen to cryptocurrencies in the future – forecasts from analysts

09.02.2022
What will happen to cryptocurrencies in the future – forecasts from analysts
While the financial authorities of Russia are fighting for the right to total cryptocurrency regulation, the positions of virtual assets are gradually strengthening around the world. Blockchain is becoming popular not only among stockbrokers, currency profiteers, large businessmen, but also ordinary people who prefer to transfer their savings into crypto coins. Blockchain is rapidly expanding into the realms of art, games, and memes. The pandemic, a major test of economic opportunity, has demonstrated the reliability of bitcoin, forcing more attention to digital currencies and innovative technologies.

What is Bitcoin

The first-born, who became the father of cryptocurrencies, is a kind of Adam of virtual coins. It was created as an innovative replacement for fiat. Becoming a pioneer of the crypto-industrial sector, provoked the emergence of many other crypto coins around the world. This trend is sure to grow rapidly. This has shaken up the traditional financial system, causing many to reconsider their attitude to cash.
The main idea of bitcoin was the desire to give free access to this financial instrument to any person, regardless of their social status or place of living. Immediately after the appearance, one new crypto coin cost a little more than a dollar. Those who managed to acquire virtual assets immediately after their appearance, a year later turned into wealthy people without doing any business. After 12 years, the value of the first cryptocurrency exceeded $60,000.

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The rapid appreciation of the first of the cryptocurrencies, positive growth forecasts allow experts to argue that the future of virtual money is very bright, despite possible downturns. Many cryptanalysts argue that the cryptocurrencies of the future can rise to 100,000 or even a million per unit. When the assumptions of analysts will come true, no one knows. But the growth trends in bitcoin’s value demonstrate the potential of this financial instrument.

 

Story of the appearance and growth of Bitcoin

The creation of the world's first peer-to-peer cryptocurrency was done by an unknown group of programmers under the pseudonym Satoshi Nakamoto. At that time, even the concept of electronic money did not exist. Bitcoin

imgIf you team up into a pool, bringing together the maximum number of like-minded people who can share network capacities, then the work will go smoothly. To become a professional miner and receive cryptocurrency, you need to calculate the amount of equipment for the smooth operation of the mining farm. The help of specialists will be required to prepare the equipment and start the neverending process.

The peer-to-peer quality of Bitcoin is its main advantage since there is no control and dependence on one system. Unlike any fiat currency, it is not controlled by banks or other financial institutions. Cryptocurrenciesare characterized by a complete lack of tracking during a transaction. The main power of cryptocurrencycontrol is mining, in which each participant receives parts of a virtual asset as a reward for generating blocks that create chains.

The developers came up with special protection against a price decrease of mined cryptocurrency. The reward is halved every four years. Halving increases the interest in mining. By halving, the deficit of cryptocurrencies remains at a constantly high level, guaranteeing high profitability. This financial instrument is well protected from inflation, so during a crisis, it is the safest haven to store capital.

imgThe actual birth of bitcoin was caused by the severe crisis of 2008. The developers solved the problem of creating electronic assets that could be controlled only by their owners, and not by the Central Bank or other regulators of cash flows. The pandemic, which brought down the economies of many countries in 2020, has forced many to be more careful about investing in crypto coins. Moreover, interest in virtual assets is growing not only among business representatives also ordinary people who want to keep their accumulated funds.

History of cryptocurrency price change

Due to high volatility, prices for virtual coins can drop sharply or rise to sky-high heights. Moreover, even with maximum falls, it does not mean that the investor will lose their capital. If you follow the graph of changes in the value of bitcoin, you will notice that each price decrease is followed by a significant increase. When creating bitcoins, their value did not exceed a cent, since no one saw any prospects in cryptocurrencies. It began to be considered as a serious financial instrument with solid potential only after a few years.

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But far-sighted investors in 2017, when BTC jumped above $20 thousand, instantly became rich. A similar course of events has pushed many to buy cryptocurrency. However, the following year there was a sharp drop to 3,000 per unit. Those who did not panic and kept their deposits in virtual coins were in for a pleasant surprise in 2019 when the rate began to rise sharply. The period of 2019-2020 was marked by several drops and rises in the BTC rate. On peak days, the value on the exchange reached 14 thousand and then decreased to 6.5 or 4 thousand.

The pandemic has made adjustments to the life of cryptocurrency. The desire of ordinary people and businessmen to find a safe haven for their savings has fueled interest in virtual assets. A real price boom for cryptocurrencies began in 2021. The price skyrocketed to $60,000, 15 times what it was in 2020. Since there is no real resistance from the outside, Bitcoin is not going to stop.

Expert community on Bitcoin’s future

Predictions are constantly appearing on the network, what will be the year 2022 for cryptocurrencies. People betting on crypto assets are very interested in the opinion of leading experts on this topic.

imgMax Keizer, the businessman, and the financial analyst believe that bitcoin will soon break through the $100,000 mark. He does not rule out that BTC will trade at 400,000 in the medium short term. The expert is known for believing in the rapid rise in bitcoin prices from the very beginning. He claims that by the end of 2022, the price of cryptocurrencies will increase significantly.

 

 

imgRobert Kiyosaki, a writer, and author of numerous books on entrepreneurship and getting rich quickly predict that investing in cryptocurrencies will become much more profitable than gold assets. He believes that the cost of a gold ounce may soon reach $3,000 and that Bitcoin will exceed $75,000. Therefore, it is much more profitable to keep assets in cryptocurrencies.

 

imgAdam Back, the CEO of Blockstreem and one of the crypto developers, suggests that in the next 5 years, the value of Bitcoin could approach the milestone of 300 thousand. As financial institutions issue more and more fiat money in rapidly growing global economic problems, people prefer virtual assets. According to the expert, a golden age is coming for cryptocurrencies.

 

imgAccording to the forecasts of Anthony Pompliano, the owner of Morgan Greek Digital, the value of virtual currencies in 2022 will be soaring. He runs a virtual asset management company and keeps most of his capital in crypto. The expert claims that bitcoin may exceed the level of 100 thousand before the end of 2022. Today, big investors willingly invest in various blockchain projects, which indicates a company of trust in cryptocurrencies.

 

imgThe billionaire owner Mark Yusko makes a very bold long-term forecast until 2030 regarding the growth of the cryptocurrencies value. He suggests that the probable cost of bitcoins may exceed 400 thousand. This assumption is based on mathematical calculations that take into account the growth in the price of gold and publicly available crypto coins. He predicts the gradual displacement of fiat money by virtual coins. The use of blockchain technologies guarantees more security, reliability, and maximum convenience, unlike the usual financial institutions.

 

The authorities of many countries are raising the alarm that cryptocurrency is actively used by criminals

The data provided by Zecurion shows how much the number of virtual coin scammers has increased. The number of fraudulent schemes in 2021 compared to 2020 with crypto assets increased almost 3 times, reaching an amount of 1.5 billion. The MarketWatch article says that US law enforcement officers directly contact ransomware that requires huge ransoms with an active rise in the value of cryptocurrencies.

By receiving the money from anonymous crypto wallets, criminals thus completely avoid responsibility for their illegal actions. The fight against criminals is conducted in its way for each state involved. Chinese financial regulators have chosen the most radical form of protection. They banned any cryptocurrency payments in the country and are actively fighting to mine. The United States has introduced a new law that requires all investors working with crypto assets to report their transactions over $10,000. Binance, the largest cryptocurrency exchange, was ordered to introduce mandatory verification of the personal data of customers, which should protect against the laundering of illegally obtained funds. The actions of the authorities slow down the development of cryptocurrencies, but protection from fraudsters only stabilizes the market, ensuring that the invested funds do not turn into smoke.

Cryptocurrency development prospects in Russia

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Experts are unanimous in their opinion that any attempts by the regulator to hold tight the circulation of crypto coins will not give positive effects. The very idea of ​​the emergence of virtual money is contrary to the desire of state institutions to fully manage virtual cash flows. Power structures, financial state bodies have enough tools at their disposal to quickly stop any illegal operations, and a total ban will only throw off a promising direction, as it was in its time under the USSR with genetics and cybernetics.
It will take painstaking professional work involving experts to carefully study international experience to pass laws that develop, rather than hinder, the use of blockchain in the country. So far, there is no unanimity between crypto enthusiasts and representatives of large businesses.

According to the CEO of IC Ivolga Capital, we should expect that over the next ten years, the share of cryptocurrency in the financial markets will increase significantly, seriously crowding out fiat money. Due to the emergence of new crypto assets, the market will increase multiple times, which will be reflected in its activity. People will strive to secure their savings by investing more and more in virtual coins that can give huge profits.
P. Pakhomov, an analyst from the St. Petersburg Exchange, is sure that crypto coins are a small stage in the development of digital financial technologies, which will gradually come to naught. He does not believe that investors will use crypto assets as financial instruments in the future.
A. Abramov, professor of stock and investment markets at the National Research University Higher School of Economics, does not agree with him. He is sure that the growth of the influence of cryptocurrency as a financial instrument on the stock markets will grow rapidly. If the Russian Federation follows the path of a total ban, it can lag far behind other countries.
Here’s the main argument of experts predicting an increased interest of business and ordinary people in buying crypto assets. On the graph below you can see a steady increase in the popularity of cryptocurrencies, despite all the negative forecasts, there is a similarity with gold, which inspires confidence in the future of crypto coins in the enthusiasts of new digital technologies.

 

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What to expect when studying the retrospective of events in the financial markets in 2021

The past year has shown how unpredictable events can progress with the trading of bitcoins or other virtual coins. Some assumptions were justified, although bold predictions turned out to be untenable. In general, virtual money stated that they have firmly entered our everyday life. Such well-known investors and consistent supporters of new blockchain-based financial instruments as T. Dreper and M. Novogratz predicted back in 2018 that the bitcoin rate in 2021 would be at the level of $10,000.

In general, all leading experts agree that the next 5-10 years will see a steady increase in the popularity of bitcoin and other types of virtual coins. The most daring forecasts may not come true, but the forecast for the first months of 2022 is very encouraging for crypto assets owners.

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Researchers involved in forecasting rates for the next couple of years are confident in a sharp increase in the exchange price in 2022-2023 up to $325 thousand with subsequent correlations up to 50-60 thousand is quite likely.

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Other sources claim that the growth of bitcoin will look like this:

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All forecasts are united by the certainty that a strong fall in prices is not planned, but there will be a gradual increase. Experts differ only in the price range of the upcoming increase in the value of the virtual assets.

What lies ahead for cryptocurrencies

Not a single Central Bank in the world will give up the right to dispose of financial flows. Each state will protect its exclusive rights to print money. Surely financial institutions will take the most out of blockchain for themselves. Many states are seriously considering the idea of ​​introducing their digital currencies into everyday life. Such a discussion is actively conducted in the Russian Federation. Conceptual, unified policy demonstrating unity in this direction, the experts and the financial institution do not yet have. However, this will not be a state cryptocurrency. If a decision will be positive, the Central Bank will become the issuer, ensuring the existence of the digital ruble with its assets.

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The state does not intend to create a competitive environment for its digital money with fiat money. It is assumed that digital money will greatly simplify, secure, and speed up interstate settlements. The low cost and instant speed of transactions will be the main advantage of digital government coins. In the domestic market, only the national digital currency circulates and is used to pay for all services and goods. At the same time, the share of international currencies that are currently used in cross-border settlements will sharply decrease. So far, the prospects for the promotion of crypto assets are very vague. This gives a field for the possibility of quick enrichment, active cryptocurrency enthusiasts skillfully using virtual coins to play on the stock exchange.

The opinions of various experts, politicians, financial institutions regarding the development of bitcoin or other virtual coins are not unambiguous. Cryptocurrency technologies have many followers and opponents. The rapid digitalization of the market and high volatility make crypto-assets an ideal financial instrument for traders. Pessimists are sure that this is only a temporary flame, which will soon fade.

So far, it can be stated that while cryptocurrencies are only beginning to seriously affect fiat money, they may become an important part of financial flows in the future. Already today there are countries where you can pay for any services and goods with virtual coins. Even the purchase of bitcoins is already possible through familiar ATMs available in stores, banks, public places, and not just on the Internet at the stock exchange or from hodlers. Having studied the table of profitability of crypto assets, we can confidently say

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Calculations were made based on volatility, rates analysis of different cryptocurrencies, and individual market features of virtual assets. The minimum and maximum price ranges of past years were assessed for compliance with earlier forecasts. There is a very high probability that cryptocurrencies, in particular bitcoins, will rush up in a bull race, and traders will certainly receive additional profits. By investing money in the purchase of virtual coins promptly, you can get a solid income.

However, everyone should make their own decisions about such investments, since the risks are very high due to the uncertainty of the crypto markets. The situation strongly resembles the times of the gold rush when you could become a millionaire after one successful gold expedition. The main difference in cryptocurrency investing is that investors are not threatened by wild animals, weather disasters, or bandits. Intelligent use of virtual coins can provide a rapid increase in profits, if you approach it wisely, using the advice of experts.

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