# Cryptocurrency 2022 Outlook
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-12
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: The Rise of Cryptocurrency in 2021
Meta Description: Discover how cryptocurrency is revolutionising the financial sector with its decentralised nature, increasing adoption by major players, and the rise of NFTs
URL: https://financedigest.com/cryptocurrency-2022-outlookhtml

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_By **Michael Kamerman,** Group CEO of_ [_Skilling_](https://skilling.com/eu/en/)

Cryptocurrency has been one of the hottest topics of 2021, and for good reason. With El Salvador adopting Bitcoin as legal tender, the surging number of retail traders, notable crypto-related influencer tweets and ‘meme coin mania’, crypto has been talked about in abundance. Though many don’t yet fully understand its potential, it seems incredibly likely that crypto will continue to attract more and more interest both amongst investors and across financial services.

Crypto has already influenced the finances of many, and with its prominence being likely to increase, this [rise in influence](https://www.financedigest.com/influence-of-the-rise-of-machinery-on-britains-workforce.html "INFLUENCE OF THE RISE OF MACHINERY ON BRITAIN’S WORKFORCE") and innovation within the financial sector is something we should expect.

**Carving out crypto’s potential**

2021 saw major financial players such as Mastercard, Morgan Stanley and BlackRock all taking a dive into the crypto world, and while some central banks such as the [Bank of England are trying to find ways to regulate](https://www.financedigest.com/austrian-regulator-orders-system-relevant-banks-to-up-capital-buffers.html "Austrian regulator orders system-relevant banks to up capital buffers") cryptocurrency, one of its most appealing aspects is the fact that it’s decentralised. This means we can likely anticipate more countries and financial institutions to scale up their crypto [offerings as demand grows](https://www.financedigest.com/discount-dining-clubs-tastecard-and-gourmet-society-grow-their-offering-as-chimichanga-and-spaghetti-house-both-sign-up.html "Discount dining clubs tastecard and Gourmet Society grow their offering as Chimichanga and Spaghetti House both sign up") for payment systems facilitating crypto transactions. [Several notable blue-chip companies](https://www.financedigest.com/the-severe-impact-of-downtime-on-companies-bottom-lines.html "The severe impact of downtime on companies’ bottom lines") such as Microsoft, Paypal and Starbucks have all started accepting payment in cryptocurrencies, reflecting how adoption is steadily increasing.

With more and more people depositing (staking) Bitcoin, Ethereum and stablecoins in crypto-specific savings accounts to generate [passive income](https://www.financedigest.com/5-mistakes-to-avoid-when-creating-passive-income.html "5 Mistakes to Avoid When Creating Passive Income"), this seems almost certain to be a trend that continues over the coming years. Covid-19 variants have impacted finances across the globe; many predict that the “side-hustle” culture that has been demonstrated in the last two years will increase appetite for [utilising digital](https://www.financedigest.com/utilising-digital-tools-to-close-the-finance-and-accounting-skills-gap.html "Utilising digital tools to close the finance and accounting skills gap") assets in 2022.

However, the fact that crypto isn’t regulated will likely also prove a challenge. Investors have been at risk of losing capital when dealing with the volatile asset but with clearer legislation and [regulations being put in place by financial](https://www.financedigest.com/australia-financial-crimes-regulator-opens-investigation-into-britains-entain.html "Australia financial crimes regulator opens investigation into Britain’s Entain") authorities, those who have either been sceptical or too afraid of the potential risks of crypto may consider joining in. Better risk control will also create a safer environment for crypto firms to innovate further without having to [overcome numerous regulatory hurdles](https://www.financedigest.com/3-common-financial-hurdles-for-the-self-employed-and-how-to-overcome-them.html "3 Common Financial Hurdles for the Self Employed (And how to Overcome Them)").

**Benefitting from** [blockchain technology](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology")

It’s almost impossible to discuss [crypto without mentioning Non-Fungible Tokens](https://www.financedigest.com/lisk-announces-lsk-token-listed-on-bitflyer-the-european-unions-newest-crypto-exchange.html "Lisk announces LSK token listed on bitFlyer, the European Union’s newest crypto exchange") (NFTs). [NFTs’ application in digital arts such as CryptoPunks and gaming](https://www.financedigest.com/what-is-nft-gaming.html "What is NFT gaming") has meant a recent huge pickup among celebrities and crypto enthusiasts alike. While the prices and values of these [digital contracts are subject to much debate](https://www.financedigest.com/young-leaders-forum-debating-what-successful-leadership-looks-like-in-the-digital-age.html "Young Leaders Forum, debating what successful leadership looks like in the digital age"), one thing is certain, and that is that people clearly see the value in owning something in the blockchain, and this is unlikely to change anytime soon.

The gaming industry has been huge in modern times and blockchain gaming has impacted mainstream adoption of NFTs while [leveling up the playing field](https://www.financedigest.com/using-agility-to-resist-economic-instability-and-level-the-playing-field.html "Using agility to resist economic instability and level the playing field") for the industry in 2022. Play-to-earn games like Axie Infinity have shown there’s much appetite for blockchain gaming, and as more people become familiar with DeFI and NFTs, [innovators will continue to find ways for crypto to grow](https://www.financedigest.com/determination-and-innovation-the-key-for-fast-growing-uc-firm.html "Determination and Innovation the Key for Fast Growing UC Firm") in popularity and implementation, such as by enabling gamers to own and trade in-game assets.

**Bitcoin at the helm**

Cryptocurrencies of all kinds have [reached incredibly high values](https://www.financedigest.com/dental-3d-printing-market-to-reach-an-estimated-value-of-us-2-9-bn-by-2031.html "Dental 3D Printing Market to Reach an Estimated Value of US$ 2.9 Bn by 2031") over the past two years, but none have come close to Bitcoin. Being the first decentralised cryptocurrency, Bitcoin’s [value has reached](https://www.financedigest.com/metal-powder-market-is-projected-to-reach-a-market-value-of-around-us-20-bn-by-2031.html "Metal Powder Market is projected to reach a market value of around US$ 20 Bn by 2031") heights no other crypto has come close to, reaching a value of $60,000 per coin in 2021 alone. By comparison, Ethereum, the [second biggest crypto](https://www.financedigest.com/belaruss-high-tech-park-announces-second-phase-legal-framework-cryptocurrency-industry-bid-become-leading-crypto-nation.html "Belarus’s High Tech Park Announces Second Phase Of Legal Framework For Cryptocurrency Industry In Bid To Become Leading Crypto Nation"), reached $4,000. Therefore, it seems likely that Bitcoin will [remain the top](https://www.financedigest.com/survey-finds-regulation-remains-top-financial-services-priority-for-2017.html "Survey finds Regulation Remains Top Financial Services Priority for 2017") crypto for some time.

While the emergence of newer coins riding [social media waves and benefitting](https://www.financedigest.com/why-you-might-want-to-wait-until-age-70-to-claim-social-security-benefits.html "Why You Might Want to Wait Until Age 70 to Claim Social Security Benefits") from influencer hype slightly hindered Bitcoin’s momentum, Bitcoin has become as popular as gold. Traders are continuing to use the currency as a [safe hedging instrument as it hasn’t seen volatility quite](https://www.financedigest.com/fractional-property-isnt-quite-as-safe-as-houses.html "Fractional property isn’t quite as safe as houses!") as wild as some of the other cryptos available.

Bitcoin is not expected to go anywhere, meaning other [cryptocurrencies are unlikely to reach the levels Bitcoin](https://www.financedigest.com/devere-officially-launches-cryptocurrency-app-with-bold-bitcoin-predictions.html "deVere officially launches cryptocurrency app with bold Bitcoin predictions") has in 2022. As it stands, Bitcoin remains the main face of cryptocurrencies and, for many novice traders, the start of the journey into the crypto world. With that in mind, it will likely also maintain its popularity with traditional [finance companies](https://www.financedigest.com/ultimate-growth-for-sme-finance-company.html "Ultimate growth for SME finance company") and blue-chip companies.

Traders who step foot into CFD [crypto trading](https://www.financedigest.com/how-to-use-algorithms-to-save-time-and-make-money-when-trading-currency-crypto-shares-etc.html "How to use algorithms to save time and make money when trading (currency, crypto, shares etc)") tend to do so with the knowledge that it is a high-risk investment, which hasn’t deterred them from taking part thus far, and is sure to not stop them in the future. Through an ever-greater understanding of the capabilities of crypto, increasing interest from high-status companies and industries, sharper regulations and further innovations, a [surge in the popularity](https://www.financedigest.com/us-senate-leader-schumer-calls-for-ai-rules-as-chatgpt-surges-in-popularity.html "US Senate leader Schumer calls for AI rules as ChatGPT surges in popularity") of crypto is anticipated; particularly through the influence of trusted, knowledgeable brokers and trading platforms navigating necessary risk management for their customers.

**Not [investment advice. Past performance does not guarantee or predict future](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  ") performance. 66% of retail CFD accounts lose money. Trading cryptocurrency is not available for UK retail clients.**


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