Bitcoin (BTC), which has experienced another volatile year, has seen new highs but also suffered dramatic falls. It appears that it will reach over 60% by 2021, which is a significant improvement on the beginning of the year.
What can we expect in 2022? We have compiled the best, the worst, and the ugly Bitcoin predictions. Learn what the future holds for this popular cryptocurrency.
1. Bitcoin will reach $100,000
Steve Ehrlich, CEO of Voyager Digital, told the Independent that he believes the ups and downs will be outweighed next year. He believes Bitcoin will be the most prominent cryptocurrency, surpassing $100,000.
Many optimistic Bitcoin price forecasts exist, but some experts don’t like to be restricted to a specific time period. MicroStrategy’s Michael Saylor is a well-known Bitcoin bull. However, he doesn’t specify when.
Jesse Powell, Kraken’s CEO, told Bloomberg that Bitcoin should be considered a five-year investment. It’s volatile from day to day and week to week. He said that you don’t want this to be traded in a very short time. It’s more of an investment that you can hold on to.
Others believe that a crypto price crash is possible, as is the case often with crypto. CNBC was told by a Sussex University finance professor that the granddaddy cryptos could plummet to $10,000 next year. She believes crypto is more of an investment than a toy.
She is not the only one to warn investors that Bitcoin’s value could drop to zero. Robert McCauley, a guest blogger for the Financial Times wrote that Bitcoin is more dangerous than a Ponzi scheme because of its environmental impacts. McCauley is a non-resident senior fellow at Boston University’s Global Development Policy Center.
2. Bitcoin adoption will grow even further
Ric Edelman, the founder of Digital Assets Council of Financial Professionals published several predictions for 2022. One prediction was that Bitcoin will be owned by more than 500,000,000 people around the world by 2022. He’s not the only one. According to CoinTelegraph Flori Marquez, BlockFi cofounder believes that increased adoption will be driven by regulatory clarity and better understanding of the industry.
It is possible that more countries will follow El Salvador, accepting Bitcoin as legal currency. Many, including Naavik’s co-founder Abhimanyu, believe that blockchain gaming will encourage more people to adopt crypto. Because of its nature, it’s likely to lead the adoption curve. It’s entertaining, and it’s great fun. He said that it makes crypto simple to understand.
However, Peter Schiff, outspoken Bitcoin critic, and CEO of Euro Pacific Capital, pointed out that investor interest has increased partly due to the coverage. He tweeted that CNBC was “reporting” on the large increase in Bitcoin investor interest during 2021 without acknowledging its contribution to driving that interest. “CNBC featured non-stop bullish reporting, constant pumping from guests, and an aggressive Bitcoin advertising campaign!”
3. Bitcoin will lose market dominance
The crypto industry is not just Bitcoin. This is a theme that has become very clear in 2021. Bitcoin accounted for 70% of the total market capital at the beginning of 2021. According to CoinMarketCap data, this figure has dropped to 40%. This is partly due to the influx of thousands of new coins, but also because of the rise of smart contract platforms such as Ethereum, Cardano ADA, and Solana (SOL). These platforms are gaining more market share as they allow for the creation of new projects.
MarketWatch spoke with Diogo Monica, Anchorage Digital’s president and co-founder.
Crypto has many moving parts, including the growing NFT market and the development of DeFi metaverses . This evolving industry may use Bitcoin as its digital gold. It could also be replaced by faster, more reliable coins.
Jack Dorsey, a Bitcoin maximalist, believes that all other cryptos are contrary to the spirit of the original digital money. He believes Bitcoin is the native currency for the internet and champions Bitcoin over all others.
4. We are seeing increased regulation
Although we have given both predictions, very few people believe more regulation will not be inevitable. This isn’t a consensus opinion.
Many industry players want clearer regulation to increase investor confidence. Others, such as Mark Cuban, a billionaire investor , believe regulation is essential, particularly around stablecoins.
Charlie Munger, vice-chairman of Berkshire Hathaway, the man who claimed that Bitcoin was’disgusting’ and against the interests of civilization advocates for more extreme measures. Recently, he stated that he believed China was right to ban Bitcoin. He said, “They’re right to take out, to push hard on booms, and not to let them go too far.” He said that China is inferior to his country if it doesn’t do so.
There are still many unknowns
No matter whether you believe Bitcoin is poised for a breakout or is in danger of collapsing, one thing remains certain: Cryptocurrency is still a contentious topic.
You should research the industry before you consider purchasing Bitcoin. We don’t know how regulation will impact Bitcoin, nor what it will look like. There’s also the possibility that other technologies will be able to take Bitcoin’s sails.
You should only buy from a trusted cryptocurrency exchange and not spend more than what you can afford to loose. This will reduce the risk of being badly burned in case things go wrong.