By 2021 was one of the busiest for the sector as the total value of cryptocurrency soaring to as high as 3 trillion. Most popular cryptocurrency such as Bitcoin and Ether have been able to continue setting new records. Dogecoin along with Shiba Inu have been two popular currencies that have caught the attention of the internet.
Experts are divided over what direction the cryptocurrency market could take us in 2022. There are those believing that the digital currency is an investment in the future, with those who oppose it claiming it’s an explosive bubble that is about to burst.
A broader range of financial advisers now accept cryptocurrency.
Financial advisors are in a difficult spot with regards to the use of cryptocurrency. Advisors aren’t provided with the guidelines they usually seek prior to giving advice to clients because of securities and exchange commission’s as well as the Financial Industry Regulatory Authority’s absence of oversight of digital currencies.
However, that doesn’t mean that their customers aren’t contacting them. According to an Financial Planning Association (FPA) survey that was released in June nearly half of advisers said that their clients asked questions about the asset during the last six months, as opposed to 17% in the year 2020.
As per Ben Cruikshank, CEO of Flourish an online platform designed for investment advisors which recently launched a cryptocurrency service financial advisors were a bit worried about cryptocurrency three years ago to visit
https://vicetoken.com/crypto-guide/how-to-buy-gochain-go/. They advised their clients against purchasing the dangerous product even.
It’s a new world. In the past six months, advisors were mostly fascinated by Bitcoin. Cruikshank stated that almost every business he meets with in Flourish is now interested by Bitcoin as well as Ethereum.
“Advisors are now paying attention to this space,” he adds. “They simply cannot wait any longer.”
The cryptocurrency market is likely to experience an important correction.
The cryptocurrency market is mostly driven by optimism and anticipation , and not much else actually happening, investors need to prepare themselves for a massive fall in 2022.
The first thing to note is that the past shows that reversions are common. The value of all virtual currency has increased by more than 1500% over the past 21 months. However, we haven’t witnessed any significant rise in the acceptance of blockchains or crypto payment usage, with the exception of El Salvador, which approved Bitcoin (CRYPTO: BTC) as legal money.
To elaborate on this issue In times of uncertainty bitcoin is unable to separate from the market for stocks. While investors may view digital currencies as separate individuals in their own right or even as a means of protection against stock market volatility and its volatility, research shows that digital currencies are a part of the share market is down. This is discussed as a number of factors indicate that a double-digit percentage stock demand correction could be in the horizon.
Investors must be cautious about the use of margins in the cryptocurrency market. There are some exchanges that provide their customers with as much as 100 times leverage over their cash balances One quick move the wrong direction could result in margin requirements spreading across the marketplace.
A new home for Bitcoin.
As mentioned previously, Bitcoin gained a significant increase in 2021 when El Salvador became the first government to recognize Bitcoin as legal currency in September.
Over the past 10 years the largest cryptocurrency in the world according to market value has earned many first-movers’ benefits, but being acknowledged as a legitimate currency by any nation was a real first.
It’s quite likely that by 2022, at a minimum, one, if perhaps more nations will be testing in the use of Bitcoin to establish a valid type of currency. The reason for this is that most countries’ rates of inflation are rising.
The cost of goods is rising as governments across the globe make money and develop spending plans to keep their companies running during the current crisis. With its comparatively small coin inventory of 21 million coins, Bitcoin can be seen as an option to security against hyperinflation.
In addition, other countries may use El Salvador as a model to help them implement Bitcoin within their own nations. Although Bitcoins has been touted as the currency for the near future, their use within El Salvador has been marred by technical problems and numerous theft attempts.
Other countries will be equipped to learn from El Salvador’s mistakes that could inspire them to adopt the world’s largest digital currency as legal currency.
New rules will be issued.
Of course, more regulation will make it easier the financial advisers’ ability to engage cryptocurrency – and experts anticipate that it will happen.
Based on Patrick Haggerty, president at Klaros Group, a banking and financial advice and investment company the financial authorities will issue several new laws and enforcement actions that could cause confusion, but ultimately make crypto more mainstream.
Securities regulation has been a source of confusion in the cryptocurrency space because it’s not clear whether crypto should be viewed as a security, a commodity or something else. It’s unclear if we’ll see clarification on this. But it appears that the SEC has taken a tough position, and they’ll provide clarity by policing instead of the release of a road-map for individuals, according to Haggerty.
Defi, also known as decentralised finance is a broad variety of investment instruments that are easily accessible via the blockchain network, rather than traditional intermediaries, such as banks. It is similar to standard finance systems in a variety of ways, yet without the restrictions on regulation which traditional finance systems are subject to.
Women are more likely to invest
According to studies, the average bitcoin investor’s picture will shift drastically in 2022. The typical bitcoin user is a man who is 38 years old and earning approximately $111,000 annually However, this is likely to be changed.
Nearly two-thirds of the population is crypto-curious. That is, they don’t have the cryptocurrency but are eager to find out more about it or have digital assets soon. According to the study, only 26% of current crypto-currency holders are women.