2021 has been an exciting decade for crypto. But what’s to come?
We’ve witnessed Bitcoin reach new all-time highs, as well as more institutional buy-ins from major corporations. Ethereum is the second-largest cryptocurrency, and it hit its record-breaking all-time high last week. U.S. government officials and the Biden administration have been increasingly expressing an interest in new regulations for cryptocurrency.
In many ways, the year 2021 was a “breakthrough,” says Dave Abner, the head of development worldwide at Gemini, a renowned cryptocurrency exchange.
It is possible to speculate about the worth cryptocurrency can bring investors over the next few months (and plenty of people will). However, the reality is that it’s still a brand uncertain and new investment with no real history to base our predictions on. Whatever an expert believes or claims, there is no way to know for sure. It is why it’s crucial to invest what you’re willing to lose and stick with more standard strategies for long-term wealth creation.
Make sure your investments are small. Never place crypto investments over any other financial goals, like saving for retirement or paying off debts with high interest.
It’s difficult to predict the future of cryptocurrency markets after 2022 and even beyond. The possibilities are a lot more diverse than the answers. If you focus on a few fundamental trends of cryptocurrency, you’ll be better able to make investment decisions as the market evolves.
Three important points have been observed:
As these issues are developed and are addressed as they progress, the direction of the cryptocurrency market will begin to form. An enlightened picture is expected at the end of 2022. However, a sequence of baby steps that began with Bitcoin’s launch in 2009 will likely last for a long time.
The cryptocurrency bill scheduled to be presented in the winter session Parliament will likely ban all private cryptocurrency used in India with a few exceptions. The exemptions are designed to encourage the technology behind Blockchain and its use. While the bill of 2019 entitled The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019′ proposed that there be a blanket ban, the bill for 2021 called ‘Cryptocurrency and Regulation of Official Digital Currency Bill 2021’ contains no mention of bans. It is due to the massive increase in participation and growth of the cryptocurrency market has witnessed in India.
The government will likely treat crypto as an asset class, not as an actual currency. It will also allow the government to obtain tax returns for crypto assets. I’m also confident that the regulations will provide transparency and accountability for trading platforms for crypto and measures to oversee trans-border transactions. Checks and balances to prevent fraud and protect investors could also be possible.