As a follow-up to “Decoding the Blockchain: Understanding Cryptocurrency,” our guide to crypto terms and trends, TCORS Capitol Group, LLC. checks in with a cryptocurrency update for 2022, citing milestones, highlighting predictions, and updating analysis of this efflorescing financial phenomenon.
Cryptocurrency Milestones in 2021
In 2021, interest in DeFi (Decentralized Finance), the ecosystem of financial applications built on blockchain networks continued to grow robustly. The popularity of meme coins (originating with Dogecoin) also continued to increase. (Check out Investor Place’s “7 Meme Coins That Could Make You a Millionaire in 2022”.)
Bitcoin recently celebrated 13 years since its launch on January 3, 2009 (though the bitcoin whitepaper was released on October 28, 2008, famously under the pseudonym Satoshi Nakamoto). This anniversary marks a number of other significant achievements for Bitcoin, including surpassing $1 trillion in market value for the first time (hitting an all-time high of $3 trillion in November of 2021).
Charitable donations made in crypto increased 12-fold according to data from Fidelity Charitable, Fidelity’s donor advised fund. Crypto donations increased to $330 million, from $20 million in 2020. Cryptocurrency investors have a strong trend of giving: in 2020, 45% of investors in the digital-asset class donated $1,000 or more to philanthropies, and 33% of those donors made their donations in cryptocurrency.
The Blockchain Association, an umbrella association for blockchain technologies, witnessed a rapid increase in member growth. Founded in 2018, the association has grown from 1 to 13 employees, and from 25 to 70 corporate members, relying on robust real-time communications to support and sustain its growth.
As the value and use of cryptocurrency increases, so do opportunities to make purchases with digital currency. Financial services company Bankrate recently published a step-by-step guide to buying a car with crypto, with a list automakers and dealerships that have begun to participate. The guide also includes key crypto statistics and a quick summary of how to invest.
The year 2021 also marked an explosion of interest in NFTs (Non-Fungible Tokens), (becoming a $40bn market in 2021) and the emergence of the metaverse as a mainstream concept (see below).
NFTs, Web3, and the Metaverse
Non-fungible tokens (NFTs), unique collectible cryptocurrency assets often associated with virtual images, gifs, or videos, have continued to captivate crypto investors. According to Coindesk: “NFTs have become one of the hottest crypto trends of 2021, with overall sales up 55% already since 2020, from $250 million to $389 million [in March].” NFTs entered the mainstream when digital artist Beeple sold his NFT for $69 million at Christie’s in March 2021.
With the rapid rise of NFTs, employment opportunities have emerged for gig workers, and “the fast-growing world of Web3 is providing even more opportunities for freelance workers to generate income from services related to NFTs, the metaverse, and cryptocurrencies.” (Yahoo Finance)
Web3, the “future of the internet,” a decentralized web, where users can transport their data from service to service, relies on blockchain technology to validate user data. Read a concise explanation of Web3 here.
Forbes provides a useful guide to differentiating between Web3 and the metaverse here.
The metaverse, the buzzy term for the emerging virtual world, “signaling the convergence between virtual realty and a second digital life,” (NY Times) represents another au courant aspect of financial and digital culture. The metaverse postulates that when avatars interact in a digital environment, their exchanges and purchases can be commodified with real world (or, rather. crypto) currency. Facebook’s “Meta” rebranding marks FB’s foray into VR (virtual reality) and the metaverse, and has also elicited interest in “metaverse” as an on-trend term.
Cryptocurrency Predictions for 2022
As cryptocurrency proliferates and prospers, experts weigh in on predictions for 2022 and beyond.
Yahoo Finance cites specific price predictions per currency here.
Forbes discusses the rise of DeFi, new NFTs, and blockchain projects here. Also on Forbes: a massive price increase prediction from Cathie Wood’s Ark Invest, ‘$20 Trillion In 10 Years’—Famed Investor’s Huge Bitcoin And Ethereum Price Prediction Revealed), and 10 Predictions For Blockchain, Crypto Assets, DeFi, And NFTs For 2022.
Time anticipates “The Future of Cryptocurrency: 5 Experts’ Predictions After a ‘Breakthrough’ 2021” here, including crypto ETF (exchange-traded fund) approval (BITO Bitcoin ETF gained approved last fall), broader institutional cryptocurrency adoption, and changes in crypto regulation.
Government Relations and Cryptocurrency
As questions around regulations and policy-making continue to arise, the crypto industry has steadily increased its presence in Washington, and demand has emerged for government relations experts who specialize in cryptocurrency policy and issues.
Cryptocurrency news site Coindesk offers a glimpse into the relatively recent convergence of government relations and the crypto industry here, examining the increasing need for cryptocurrency experts.
The Washington Post cites some of the challenges in building a well-structured approach to cryptocurrency at the capitol here.
And the New York Times explores a new aspect of the confluence of cryptocurrency and government in its recent article on “crypto mayors,” who seek to incorporate crypto on the municipal level.
The National Conference of State Legislatures provides a state-by-state guide to cryptocurrency legislation (updated for 2021) here.
Looking Ahead
2022 promises new firsts and groundbreaking developments in the cryptocurrency realm. As crypto moves into the mainstream, greater opportunities for investment, philanthropy, and fluency arise.
TCORS Capitol Group, LLC (TCG). strives to operate on the vanguard of technology, finance, and communications, honing its expertise in digital and financial innovations. Learn more about TCG’s suite of services here.