Organizations across the globe are slowly warming up to cryptocurrency assets. From small shops to big corporations, the digital gold rush has begun. However, given that organizations have had only a few years to adapt to these assets, it is still a novelty for most businesses and government agencies. Those who understand them and have accepted cryptocurrencies need to be prepared for anything onslaughts from regulatory agencies as businesses adopt these new assets more widely.
1. Institutional Investors are Taking Crypto Investments More Seriously
Cryptocurrencies were born from an anti-establishment movement. This means they aren’t taken seriously by the institutional investment community because they’re going against the status quo. Traditional investment firms have been hesitant to invest in digital currencies because of investors’ uncertainty, regulatory concerns, and a lack of proven strategies for trading these currencies. However, these signals that cryptocurrency is gaining mainstream acceptance as a valid investment vehicle. The market cap of all cryptocurrencies is expected to exceed $2.8 trillion by the end of 2022.
2. Countries and Banks are Opening up to Cryptos
Many countries and banks will have begun to accept cryptocurrencies as legal tender. The ease of use, great user interface, and acceptance by vendors have contributed to this gradual shift. Several factors are driving this sudden surge in cryptocurrency popularity. First, everyone has grown tired of banks’ reputation for slow service and high fees, and people want a new way to conduct transactions without paying these premium prices. Second, many people want to invest in cryptocurrencies but do not want to deal with the hassle of keeping track of all their digital tokens.
3. Crypto Exchange Platforms are Growing in Popularity
Cryptocurrency exchange platforms are expected to grow in popularity in 2022, but only if the industry can stop the recent rash of online scams. Crypto exchange platforms are among the most popular uses for cryptocurrencies like Bitcoin and Ethereum. The problem is that many scams can occur through various forms of these exchanges, including fake exchanges and phishing scams. As a result, many people have been fooled into giving away their information or sending money to offshore accounts, losing their funds.
Regulators are struggling to keep up with the growth of cryptocurrencies, though they remain committed to the general idea of the technology. As a result, regulators have begun taking a more active role in the cryptocurrency market, resulting in increased regulatory oversight and an increase in price volatility.
Dil Bole Oberoi
