The past ten years has seen the rise of a phenomenon which has shaken the world of finance to its very core. Cryptocurrency began in 2009, when Satoshi Nakamoto mined the first block of Bitcoin (now referred to as the genesis block), and since then, the concept has grown in people’s estimate, to the point where it is now openly discussed in the mainstream.
It is only recently that cryptocurrency has grown out of the niche culture which it inhabited though. It was in 2020 that Bitcoin saw the peak of its value, and became more popular in the zeitgeist. A lot of people are discovering cryptocurrency with increasing frequency. Many prospective investors might still be confused on how exactly it is that the crypto market works. For those, more information on cryptocurrencies can be found on the website linked.
The Popularity of Crypto
As stated above, cryptocurrency has, only recently, taken a spot in the mind of the majority of the population. While people had heard of the concept before, many dismissed it as a trend. However, that all changed in 2020. By this point, many people had lost their faith in traditional investment methods and financial institutions. It was during this year, that people rediscovered Bitcoin (and cryptocurrency in general), and the prices of many cryptocurrencies rose drastically. Among them, Bitcoin was the most popular, reaching a value in the tens of thousands.
Since then, Bitcoin especially, but cryptocurrency in general, has seen a drastic surge in popularity, growing more and more rapidly. Nowadays, many are wondering about the future of the crypto market. Let’s discuss upcoming events that may have a huge impact on crypto.
How Will the Crypto Market Change?
Recent events, most notably the war between Russia and Ukraine, have had quite the impact on Bitcoin. Many have noticed the drop in value, caused mainly due to Ukrainian and Russian crypto miners being displaced by the war. This price drop has prompted many to jump ship, believing that Bitcoin is not worth investing in.
The truth is, this couldn’t be more wrong. According to experts, now is exactly the right time to invest, as the price of Bitcoin is predicted to rapidly surge in the next 5 years. In fact, it is believed that, by the end of 2022, Bitcoin will reach a value of $100.000.
Another recent event in the world of crypto, which will have a serious impact on the market, is the transition to a proof-of-stake system that many of the most popular cryptocurrencies have committed to. The most notable of these is Ethereum, the second most popular crypto on the market today. Investors believe that this change in Ethereum will prompt many cryptocurrency providers to follow and change over to staking.
As we said, in recent years, investors have begun to trust cryptocurrency more and more. Many believe, that in the next 5 years, the number of crypto investors will grow, and grow drastically, simply due to the acceptance of Bitcoin into the mainstream. One of the main aspects that is expected to lead to many investors looking towards crypto as a viable alternative, is governments’ acceptance of Bitcoin. El Salvador has recently embraced Bitcoin as a viable investment, and has made it legal throughout the country. While many governments, like China, are still reticent to embrace crypto, many others are considering a total acceptance of the phenomenon.
Finally, cryptocurrency has often been branded as harmful to the environment. While this has been true for a long time, in 2022, when more and more people are becoming more aware of environmentalism, cryptocurrency providers are attempting to find new, and better, ways to function without being harmful. This new, greener, outlook on crypto, has prompted many prospective investors to give it a second glance.