5 things that need to happen for Crypto to prosper in 2022
2021 has been a year that was meant to be a recovery period after the huge disaster of 2020 we experienced with the Covid 19 Pandemic and while the conditions have been better than a year ago, the ripple effects of the pandemic will always be felt for years to come. Surprisingly with all the concerns happening, the Crypto space has found a way to carry their momentum from 2020 to reach an all time high in 2021. So How has Crypto Space been so far in 2021? And 5 things that need to happen for the momentum to continue in 2022?
How has Crypto Space been so far in 2021?
Crypto Space has been expected to continue its boom in 2021 and ironically it has appeared as a saviour for people from the uncertainties in 2020. It is also not surprising that countries who have been hit the most with the pandemic such as India, Indonesia and the US were amongst the countries with the most Crypto Owners.
Speaking of Crypto in 2021, we will definitely have to mention one country who has been stealing all the highlights in the Crypto Space that is El Salvador. Last year in 2020, not all were familiar with this small island but President Nayib Bukele surely put it on everybody’s mind this year when it adopted Bitcoin as a legal tender. This was actually the first time where a Cryptocurrency that is not a stable coin has been used by a country and this helped open the possibility of driving more utilities in the Crypto space.
Well while El Salvador embraced the Crypto Space this year, 2021 also saw China who announced their harsh stance on the Crypto Space. Although China’s crackdown on the Crypto space has been nothing new, this year the PBOC announced a ban on all transactions related to crypto within the country. This has created a very different point of view in terms of regulation.
The US also managed to create some stir around the Crypto space with the introduction of the infrastructure bill that was aimed to provide more transparency on the Crypto Space. Although this would not take effect until 2024, this is a clear stance that the US is open to regulating crypto space.
In terms of adoption, Crypto has also been breaking records this year despite the covid pandemic putting a halt in the economy. It not only saw the first US Bitcoin ETF launched in the New York Stock Exchange but also saw the Crypto Market Cap reaching its all time high of 3 Trillion. The numbers of Crypto holders worldwide had also doubled this year touching 221 million users this year.
This also sees Major upgrades on the 2 biggest Cryptos in the market with Bitcoin activating its highly awaited taproot upgrade which is its first major upgrade since segwit and also Ethereum which begins the Phase 0 of the Ethereum 2.0. Unfortunately this year also saw a big rise in meme coins like Floki Inu, Baby Doge or Dogelon Mars that aims to be the next shiba inu or Doge that have no fundamentals but managed to create the hype. One particular of these meme coins which stand out this year is the ‘Squid Game’ token that was based on the popular Korean based Netflix series but managed to rip a lot of people off due to baseless hype.
Although this year has shown remarkable progress in the Crypto world, let’s look at some of the things that need to happen to maintain the momentum in 2022.
5 things that need to happen in 2022:
1. More regulations upcoming: Throughout 2021 there has been a significant progress on regulations but most of them are focused on the exchanges. There is still not a lot of framework that is provided on the fundamentals that a coin should have and what kind of coins should be listed on the exchanges and listing sites. This is really needed because it is pretty futile if we have a regulated exchange that is filled with shitcoins that do not have any fundamentals at all, people will still get scammed. There is also still no clear stance on what cryptocurrency is regarded as with some countries adopting it as a legal tender and while others are considering it as an asset when it’s actually meant to be a payment system. Hope that in 2022, the regulatory framework could tackle these few issues.
2. Greater institution adoption: Institution has been the main driver of the Crypto space and also serves as an example to the governments that Crypto could work as a payment system. In 2022 as the economy slowly recovers, there should be more institutions dipping their toes in the crypto space because it provides them with a win — win solution essentially, because they will receive a much more efficient payment system and an asset that grows overtime if they decided to hold it as reserves. This will also benefit institutional investors or investment banking firms as Crypto ETF and Derivatives has proven to be a hit amongst users and offers an exciting new product.
3. Better Education on the Crypto Space: Most people enter the Crypto space with a clear understanding how much price SHIB has grown since 2020 but only few will know that this token which is of no value, is created easily with no fundamentals whatsoever. Due to the enormous information and self-proclaimed crypto experts going around, a better education should be made available for people to understand and differentiate what is valuable or not so scams like the ‘SQUID GAME’ token and ‘ONEcoin’ would never happen again. More information should be provided not only on the amount of price gain you can receive but also on the technology behind the cryptocurrency you are investing in.
4. Better scalability within the network: The Cryptocurrency Market has been prioritizing security over scalability on the transactions in the network. This idea is not quite the best for a payment method that aims to compete with VISA & Mastercard who are processing more than thousand transactions per second. Bitcoin and Ethereum have tried to solve this with the lightning network and Ethereum 2.0 but there should be more innovations to be done in 2022 so it can eventually be accepted as a payment system.
5. Less of Memecoins & Shitcoins: Meme coins have been really growing lately and it is a perfect example of how you can misuse a great technology. Although Meme coins are good for people who want to make quick money out of trading, it is putting the idea to regulators and investors that the Crypto Space is filled with worthless coins that rise in value just because some famous people promote it. There should be a barrier of entry in place at least on centralized exchanges or listing sites to sort out which coins have the proper fundamentals to be listed out just like what is done in the stock market so that we can identify which ones are blue chip and penny stocks.
We in Nagaya Technologies Pte. Ltd are extremely excited that in 2022 the World’s first Hybrid Cryptocurrency which is called Nagaya are going to be listed on international exchanges. We have created Nagaya with a belief that it is a reliable and seamless payment method built upon legality and transparency and we hope that it could provide maximum value to all of you across the world. For more information regarding the latest updates on Nagaya and our whitepaper, you can visit us at nagaya.io
Or you can talk to us at t.me/nagayaofficial