2022 Crypto Forecast

As 2021 is nearing its end I will share with you some of my thoughts on the developments in crypto to look forward to in 2022. I have no crystal ball of course, and making predictions in this highly volatile, and as of yet unregulated space is nigh impossible of course, but there are still some trends we can recognize and extrapolate into the near future. And right now, 2022 is the near future indeed ;-)

Let's go back first, to the start of the current bull market (yes, I believe it isn't over yet), which started in December 2020; that's when Bitcoin's price broke the previous all-time high of almost $20,000. We then had a couple of months of explosive gains, culminating in a new all-time high of nearly $64,000 in April 2021. During those months we saw a lot of news reports about institutional money entering our beloved market, which in turn sparked the belief in a much longer bull-run this time around and the possibility that volatility would be reduced because institutional investors usually invest for the long term; bitcoins bought by the likes of Tesla, Greyscale and Michael Saylor's MicroStrategy will most likely never be sold, as they are now part of their companies' asset base. And a big part of their stocks' growth to boot.

In those early days of this bull-run many technical and fundamental analysts predicted that Bitcoin would reach a price of over $100,000 this year; I believed that as well. But we were wrong, seeing that the year is nearly over and Bitcoin's price at the time of writing stands at $50,751; I don't see how we'll cross that magical $100,000 threshold in the next few days. Except maybe some incredible short squeeze... On the other hand it seems like the prediction about this bull-run being much longer than previous runs seems to be exactly right; the prediction of a $100,000 Bitcoin still stands, it's just been postponed to the first quarter 0f next year. It must also be said that a lot of energy has been diverted from Bitcoin and Ethereum due to the rapid growth of other projects, mainly DeFi, NFT's and DAO's.

The development in which I still have the least amount of faith is NFT's. At least the NFT's that are now flooding the market and are vigorously discussed in our platform as well as many others. I believe it's a hype for the most part and predict that most of the NFT's that consist simply of becoming part of an exclusive member of an exclusive club of owners will trend down. NFT's with practical uses cases on the other hand, like in-game assets for popular games, or a digitized photo for use in future decentralized online identification purposes, will become more widespread and their associated tokens will hold value. Going back to the in-game assets, I also believe that established game publishers will jump on the bandwagon of the "play-to-earn" gaming community and reward players with in-game assets in the form of non-fungible tokens; Web 3.0 is inevitable, and they'd only shoot themselves in the foot by not recognizing that. Let's hope this trend will be the beginning of the end for "Pay-To-Win" games...

Maybe not in 2022, but I do predict that someday in the near future many people will be employed by a Decentralized Autonomous Organization or DAO. Decentralization of everything digital is the way of the future, and it's why cryptocurrencies were invented in the first place; Bitcoin was a reaction to the immense centralized power of Central Banks and governments that caused the 2008 global financial meltdown. It's only common sense; democracy means nothing and will always be overruled if wealth and power is allowed to be concentrated in the hands of the few. People in this space don't like to hear it, but that's socialism; economical democracy. Do I predict that this upcoming wave of decentralization will thrust us into a socialist future though? No. So don't worry ;-) We're not there yet.

Let me remind you all that this is just a bunch of my personal thoughts and opinions, combined with the thoughts and opinions of some of the pundits I trust, not financial advice!

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