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While the crypto market has had an extremely tumultuous year, it has also witnessed large price increases and continuous growth over the past 12 months. To that aim, the entire market cap value of the cryptocurrency sector has fluctuated between $2.4 and $3 trillion, with a further increase expected across various currencies in 2022 and beyond. In this piece, we'll look at some of the most important crypto trends you should look out for.
Institutional Adoption of Cryptocurrencies
Many businesses currently accept cryptocurrencies; the biggest growth has probably been gamers who use crypto to play online games, including slots, jackpots & live casino games. Banks and asset managers are now also rushing to provide customers with blockchain payments, trading, and investing services, while many businesses already accept cryptocurrencies.
Everywhere you turn, more and more businesses are becoming involved with cryptocurrencies and blockchain technology. The Chainalysis Global Crypto Adoption Index, issued in August, indicates an 880 percent 12-month increase in crypto adoption globally as citizens seek refuge from monetary debasement. Michael J. Saylor of MicroStrategy, Bitcoin's most renowned corporate sponsor, said that his business had acquired another 21,454 BTC, raising its total BTC holding to 114,042.
This astounding gamble on Bitcoin has piqued the interest of many other business executives, who’ve begun to pay attention to Saylor's warning that fiat currencies are on a path to perdition due to uncontrolled monetary growth. It's logical to suppose that businesses who begin accepting crypto payments would begin to consider transferring part of their cash reserves into Bitcoin and other crypto-assets as an alternative to fiat currencies.
El Salvador was the first government to recognize Bitcoin as legal cash and is currently issuing a Bitcoin Bond. This bond sale lays the groundwork for other governments seeking a route out of dollar-denominated debt to follow suit.
The Tokenization of Almost Everything
Tokenization establishes digital tokens representing ownership and other rights to nearly any type of asset, including virtual assets, stocks, real estate, debt, bonds, copyrights, art, and collectibles. Blockchain technology has enabled the acquisition of fractional ownership of a property with legal rights without paying the full purchase price. The same is happening with other types of securities, such as loans, bonds, and stocks.
One of the great promises of cryptocurrency is that it’ll bring financial inclusion to the masses, which is unquestionably a significant step in that regard. Investing in additional securities or conventional assets is either exclusive or too expensive for many individuals. Blockchain technology will enable investors of all sizes to invest in various assets, while crowdfunding approaches will allow even the tiniest investors to participate.
Tokenization will make investment genuinely amazing, easy, and cost-effective. Investors may already purchase a tiny portion of a real-estate-backed property with the potential for rental income and capital gain and then sell their tokens when they leave the venture.
The NFT Takeover
NFTs (Non-Fungible Tokens) are still in their infancy. They've developed a new digital property economy. In the digital world, NFTs are assets that may be purchased and sold just like any other tangible assets. Under tokenization, digital tokens may be viewed as proof of ownership regarding virtual goods such as digital art and tangible assets.
According to the Harvard Business Review, having an NFT simultaneously makes you an investor, a club member, a brand stakeholder, and a participant in a loyalty program. The programmability of NFTs enables new business and profit models. For example, NFTs have enabled a new sort of royalty arrangement in which a portion of the transaction is returned to the original creator each time a work is resold.
The NFT sector is expanding into areas that benefit many people, from individual artists to businesses. It involves transferring an asset or the rights to an asset to anybody. This transfer occurs without the need for additional costs or third-party intervention. It's an exciting development that has created a marketplace for digital products. The amount of NFTs traded shows that they’re not a fleeting craze.
Takeaway
There are several reasons why this industry is so popular, including general aspects and those related to current market situations. In terms of the former, cryptocurrency is supported by cutting-edge blockchain technology, which produces decentralized ledgers and tokens that are impervious to third-party manipulation. As a result, central banks don’t control cryptocurrencies, resulting in entirely unchangeable records and transactions.
Regarding current market circumstances, it's reasonable to assume that crypto-assets like BTC have seen their value rise significantly. This long-term growth has been sustained despite constant bull and market runs, indicating that the token's worth has grown as a "buy-and-hold" asset. Cryptocurrency is also extremely safe, making it perfect for casual users and investors looking to handle their money online.