Many of the oddest headlines of 2021 were about cryptocurrency. Activists hailed digital currencies as a game-changing technology that has the ability to develop new economies and empower those without bank accounts. Crypto’s large environmental imprint, as well as its appeal in online crime, have been cited by critics. So, bridging the gap between these two points of view will be a difficult task.
Much of the bitcoin sector operates as a hype-monster, propelled by bizarre memes of beautiful pets and emoticons from outer space. The same sector has received a stunning amount of financing from venture capitalists and individual enthusiasts, as well as significant technological breakthroughs that have the potential to change the way we interact with money. And, as is frequently the case with innovation, we may not get exactly what we want. CNET enlisted the aid of experts to chart crypto’s path to new frontiers in 2022. Here’s what they had to say to us.
Crypto into the mainstream
Big businesses are attempting to find out how to incorporate cryptocurrencies into their operations. This year, everyone from hedge fund managers to Starbucks executives is making decisions that will have an influence on how we utilize digital money. When we hear about cryptocurrencies in the news, we usually think of Tesla CEO Elon Musk’s comments, overnight billionaires, high-end digital art, and hacks. The larger, more fundamental shifts, on the other hand, are frequently less showy and attention-getting than whatever crypto-hype machine is dominating Twitter at the time.
NFTs’ Future
Nonfungible tokens, or NFTs, are a buzzword that many of us first heard around 2021. NFTs have gained immense popularity in the art and collectibles markets as a novel means to identify ownership of digital goods utilizing a blockchain ledger. The Bored Ape Yacht Club was one of the most prominent NFT collections of 2021. NFTs, on the other hand, have significantly more potential than bizarre digital artworks. NFTs are also used to buy digital land in virtual worlds and to own, license, and produce next-generation music. Some analysts believe that in the future, NFTs will provide access to special deals or limited-edition items. Consider using an NFT to purchase a concert ticket. Or when you go online to play your favorite video game? All of this is expected to happen in 2022.
More and bigger threats
In 2021, cryptocurrency was used to enable ransomware payments of millions of dollars. This is due to the fact that digital currencies have qualities that make them appealing to thieves. They’re difficult to trace, have no borders, and are virtually hard to unwind after the money is made. DeFi is a fast-evolving, highly technological field with immense promise, despite the fact that it is still in its infancy. As a result, it’s drawn a lot of attention and money, making it perfect for illicit activities.
The rise of stablecoins
Because of its volatility, Bitcoin and other cryptocurrencies have made headlines. At the hyper-speed of the internet, you may become a billionaire or lose everything. However, try purchasing a coffee with bitcoin, and the volatility may quickly become perplexing. Stablecoins are a type of cryptocurrency. This type of cryptocurrency, which is linked to an underlying asset, helps to alleviate some of the risks. Stablecoins may play a critical role in transforming bitcoin into a tool that we can use to perform routine transactions.
