Cryptocurrency is having such an effect on the world right now that it’s driving forward blockchain technology into the financial and banking services sector at a rapid pace. There’s no doubt that traditional financial institutions are seeing the benefits of crypto-driven technology, and they want a piece of the action!
Aside from this, the cryptocurrency market seems to have been going through a lot of rapid changes in the last few years. The question is, what crypto trends are happening now that we should keep an eye on?
This guide will run you through 14 crypto trends that you shouldn’t ignore if you want to make money investing in crypto. Read on to understand the market better and learn how you can make financial killings in the coming months and years!
1. NFTs Are Going to Be Big
If you aren’t so knowledgeable about NFTs, now is the time to familiarize yourself with them as they are going to become big! NFTs (non-fungible tokens) may see a large increase in trading volume within the next year.
These increases may be due to the fast rate of exposure people are getting to NFTs from the celebrity world and online. NFTs could go mainstream in a big way since there are so many outlets for them in terms of expression. For instance, the music and art industries are in a rapid process of adapting NFT technology to reap all the benefits it can offer.
There may also be so many other ways that people will use the concept of NFTs that have not even been invented yet. If you think that the NFT marketplace is dealing with billions of dollars right now, there are surely going to be some motivated individuals and groups who want to capitalize on this.
But what is the main premise and attraction to NFTs? Well, through the use of blockchain technology, people can own an original digital file that cannot be copied.
If you bought a piece of NFT digital artwork, you would be the sole owner. It means you would be able to sell that artwork, potentially for a profit. So with this in mind, you can see NFTs as a way of investing in digital assets rather than traditional physical assets.
2. Altcoins Will Become More Prominent
Bitcoin was the original and “godfather” of cryptos in a sense. It paved the way for altcoins (alternative cryptocurrencies) to spawn and flourish. In recent years, we have seen some altcoins come into prominence.
So some prominent altcoins in existence right now include:
- Ethereum (ETH)
- Binance Coin (BNC)
- Cardano (ADA)
- Solana (SOL)
- Litecoin (LTC)
- Dogecoin (DOGE)
Keep in mind that there are tens of thousands of altcoins in existence today, according to Investopedia. Although many of them are pretty much worthless, some will shine through, and this is where people can make monumental investment gains!
3. Bitcoin ATMs
The concept of Bitcoin ATMs is really interesting in the sense that you can use your crypto wallet almost like you would use an ordinary bank account to withdraw money. For instance, you could be at a mall and want to withdraw some dollars. Instead of withdrawing them from a traditional checking account, you could delve into your crypto funds and withdraw dollars from the ATM to spend at the mall.
Bitcoin ATMs are also convenient if you want to buy crypto with the physical dollars that you have on your person. And you are not just limited with the choice of buying Bitcoin, but countless other crypto options. Here you can check out if there’s a Bitcoins machine near me where you can purchase crypto.
4. DeFi Advances
One of the most likely cryptocurrency trends we are going to see in the coming years is the advancement of DeFi technology and concepts. After all, DeFi (decentralization) is one of the core principles that drive developers and users into the crypto world.
A good indicator of why people believe the DeFi ecosystem is sure to advance is that it already has in such a short period. Only in the last couple of years we’ve seen the complexity and innovation in the DeFi world explode to incredible levels. And as governments try to push toward digitally centralizing the fiat currencies, there’s all the more incentive for crypto developers to work faster and harder on DeFi technology.
5. The Rise of CBDC
CBDC is an acronym for Central Bank Digital Currency. Governments are now getting serious in their pursuits to digitalize their fiat currencies with the use of blockchain technology. One major motivation for this may be that they want to have more knowledge of the economic activity occurring in their state.
For example, India is on a path to implementing a digital Rupee. Some commentators are positive about this move, while others are warning it could shake up the Indian Financial system. Either way, other governments will be watching this Indian national experiment and will be keen to learn from any mistakes or successes they make.
6. Regulation of Cryptocurrencies
Another thing governments will be doing is trying to regulate cryptocurrencies more. There have already been some regulations put in place by governments and international bodies. Yet, the crypto world is still in its infancy, and we should expect more regulation on the horizon.
It’s pretty clear that governments are not huge fans of decentralized currencies, as these currencies threaten to take the power out of government hands. Yet, due to huge mainstream participation in the crypto world, governments have been left with no choice but to embrace cryptos to some extent, for the time being, at least.
And in any case, governments stand to make some money from the industry through taxation. For example, countries like the UK, U.S., Canada, Germany, and Italy have all implemented some form of tax regulations already.
7. Crypto Warfare
Due to the decentralized and private nature of crypto, it makes sense for nations in geopolitical feuds to turn to cryptocurrencies to hide their spending decisions. It’s no secret that Russia and Ukraine have been utilizing crypto throughout the conflict so far.
When the West implemented several tranches of sanctions on the Russians, it was a no-brainer tactic that they would turn to cryptos as an option to retain capital. The Ukrainians’ relationship with crypto during the conflict is related to them gaining foreign aid for the war efforts and other needs. You can actually go to a website that gives you the details of how you can donate directly to the Ukrainian government right now!
8. Proof-of-Stake Will Become the Norm
It’s incredible to think how much energy miners use to mine various cryptos, especially ones that run on a proof-of-work (PoW) mechanism. The energy demands of mining Bitcoin each year, for example, are almost equivalent to some European states (Belgium and Finland).
The main issue here for many is this huge level of energy consumption may be causing harm to our environment. Governments and institutions may consider action against some of the giant crypto mining farms.
One way that crypto developers can lower the consumption levels of mining and transactions in their network is to change their network to have a proof-of-stake mechanism (PoS). Many cryptocurrencies have already main the switch from a PoW mechanism to a PoS one, such as the major altcoin Cardano (ADA).
9. Ethereum 2.0 Reaches New Heights
The creators of Ethereum 2.0 launched it in 2020, yet the upgrade wasn’t meant to all happen at once but in stages. Ethereum is slowly changing from a PoW to a PoS network with this upgrade.
Many think that by the end of 2022 that Ether (Ethereum ETH) will become a PoS network. This will means the platform will consume much less energy than before, and some think that the supply of Ether will be driven down, making it deflationary.
The main idea with Ethereum 2.0 is that transaction speeds will become much less. Even users with standard hardware will be able to run validating nodes in a profitable sense even.
10. Venture Capitalism in the Crypto Realm
Since the global cryptocurrency market hit a whopping $3 trillion market cap, venture capitalists are showing much more interest in the industry. We are already seeing VCs investing billions of dollars into the crypto world, and this is not just investing in cryptocurrencies alone.
In the coming years, VCs might invest in large crypto products, whether they are cryptocurrency, NFT, DeFi technology, or blockchain-focused. We are likely to see rising crypto investment superstars make billions for themselves and their clients. Some names to look out for include Casey Caruso, Morgan Beller, and Brett Gibson, to name a few.
11. Crypto Game Demand
Blockchain gaming is a pretty new concept and is yet to fully perforate into the mainstream. With the development of the Metaverse in full swing, it is possible that the demand for crypto games will rise faster than before.
One of the biggest draws to blockchain gaming might be the “play-to-earn” model that some platforms are now offering their players. Users can earn money playing a particular blockchain game, and by doing so, they support the use of a particular crypto. With this support, the crypto may rise in value, making it a worthwhile pursuit for crypto developers.
On the platforms that support these games, users can buy and trade NFTs too. On some games, like Wanaka Farm, you can use NFTs to earn more money.
12. Crypto Retirement Funds
We may see a future where people start entertaining cryptos as a viable way to save for retirement. The reason for this is that 401(k) retirement accounts are starting to consider cryptos as portfolio options.
With the rise of stablecoins, people can feel more reassured about investing in cryptocurrencies. And in general, as crypto technology advances and more global investment flows into the crypto realm, it seems inevitable that people will in the future be drawing out cryptos from their retirement accounts.
13. Crypto Payments Become More Acceptable
In the future, we are sure to see a wider acceptance of crypto payments from global businesses. This may be due to the demand from customers to have the option of paying in crypto if they wish.
Right now, we see many places accepting Bitcoin as a form of payment, whether it’s online or in a physical store. However, we think the trend will first infiltrate the online sphere of things first as it will be much easier for businesses to implement such payments online. The challenges that physical stores will have are hardware and software system updates they’ll have to model into their current system.
14. The DApp Market Expands
DApps looks to be the next big thing in the crypto world. These are decentralized applications that run on peer-to-peer networks, and the market for DApps could be huge!
Most DApps right now use the Ethereum blockchain at their core. There may be more than 2,000 DApps running on the Ethereum blockchain right now. Yet, we may see DApps start to use platforms like Cardano (ADA) as a viable Ethereum alternative, and who knows, even governments and big businesses might get involved in this area of blockchain technology.
Crypto Trends Happening Right Now
As you can see, there are a lot of potential crypto trends on the horizon. Some of these trends are happening right now, while others may never come to fruition. The best way to stay on top of it all is to keep educating yourself so you can make informed decisions on how you want to interact with the crypto realm.
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