The world of cryptocurrency is changing rapidly, with institutions and countries exploring cryptocurrencies like Bitcoin within their financial systems. Bitcoin is the first and most valuable cryptocurrency that has increased in value and gained much acceptance over the years.
Cryptocurrency is now considered legal in many countries like El Salvador. However, in countries like China, cryptocurrency transactions remain illegal. This and other cryptocurrency trends have helped predict what will happen to Bitcoin in the future.
How will Bitcoin Change In 2022?
Bitcoin provides investors with a way to do transactions in a decentralized network. All transactions are recorded on an online ledger, thus ensuring a transparent and secure record of transactions. This makes Bitcoin more appealing to investors as it cuts out the middleman. The future of Bitcoin looks promising as more people and businesses accept and invest in cryptocurrency. Here are five ways Bitcoin will change in 2022:
Bitcoin Will Increase In Value
Bitcoin had no value when it was first introduced. However, in 2011, the value of Bitcoin increased to USD$1. Since then, the value has rapidly risen. As the value of Bitcoin rises, more people, even institutions and businesses, are looking into investing in it. But if you’re not ready to put up an investment, then learning how to get free Bitcoin online is worth trying.
In 2021, Bitcoin value exceeded USD$65,000, more than double its price in 2020. However, because of its volatile nature, Bitcoin price went below USD$30,000, then reached its highest value ever in November 2021 at USD$68,000. Bloomberg boldly predicts that Bitcoin price could reach USD$400,000 by 2022. On the other hand, other experts give a more conservative estimate at USD$100,000 for the same year.
More Businesses Will Accept Bitcoin
The growing investment in Bitcoin has sparked the interest of many businesses worldwide. As a result, many have adopted Bitcoin within their business operations, transactions, and investments. As more major companies start accepting Bitcoin, more businesses will follow suit. Additionally, it could mean the value of Bitcoin in 2022 will likely increase.
Employees Will Be Paid With Bitcoin
As Bitcoin gains acceptance, more people will opt to receive Bitcoin as a payment method for work done, and many businesses are likely to consider this payment method. As the workplaces embrace remote work and hire freelancers, more companies might consider incorporating Bitcoin as a payment option in their payroll.
Crypto payroll means that employers have the option of paying employees using cryptocurrency. Paying employees with cryptocurrency like Bitcoin could make paying employees who might be located in different parts of the world easier, faster, and more convenient. In addition, paying employees with Bitcoin means that transactions are permanent and can be traced. However, this payment method is likely to gain momentum once Bitcoin becomes less volatile and more secure.
Bitcoin Will Be Regulated
There are questions about regulating cryptocurrencies. The most popular questions are whether the government can regulate cryptocurrencies and if there’s a right way to do so. Regulating Bitcoin might mean moving away from its goal of having a decentralized system. However, as more companies accept Bitcoin, the need to regulate it becomes more pressing.
In 2022 we might see countries like the U.S. embrace cryptocurrency by regulating it. The purpose of regulating cryptocurrency is to make it a safer environment for investors. It could also provide a way to detect tax evasion and report crypto transactions. However, it’s important to note that regulating Bitcoin could affect its price, resulting in regulation problems.
Ethereum Could Overtake Bitcoin
Ethereum is the second most valuable cryptocurrency in the world with USD$100 billion total value locked onto the Ethereum network. This cryptocurrency is similar to Bitcoin with some slight differences. Ethereum allows you to create smart contracts and has its own programming language. Furthermore, Ethereum allows you to do various things that Bitcoin cannot do. This makes Ethereum more appealing to many investors, thereby creating more acceptance.
As more people use Ethereum in 2022 for transactions, it could increase in value. The demand for cryptocurrency in non-fungible tokens (NFTs) and decentralized finance (DeFi) sectors continue to increase. Therefore, Ethereum has the potential to overtake Bitcoin in terms of market capitalization because of its sizable total value.
However, some may argue that this is far from happening because Bitcoin is more popular and scarcer than Ethereum. Nonetheless, we cannot ignore that the price of Bitcoin went down while Ethereum grew by US$1,000 in value, and is expected to rise in 2022. This shows Ethereum has great potential to overtake Bitcoin in the coming year.
Over the years, Bitcoin has gained acceptance and has steadily increased in value. Experts predict that Bitcoin will continue on this path as major companies embrace it as a method of paying for products and paying employees. Additionally, acceptance of Bitcoin could mean accelerating the process of regulating it.
More than a decade ago, Bitcoin was created to provide a decentralized place to do transactions. However, with more people and businesses adopting Bitcoin and investing in it, there could be a shift to a more centralized cryptocurrency marketplace for security purposes, potentially affecting its price. Moreover, Bitcoin could be overtaken by Ethereum as it rises in value and gains more acceptance.