The future of digital currencies
: Digital currency concept
It is any form of digital or virtual currency in which encryption technology is used to secure financial transactions. These currencies do not have a central issuing or regulatory authority, and instead use a decentralized system to record transactions and issue new units. This system enables anyone anywhere to Sending and receiving payments Rather than transferring and exchanging physical money in the real world, digital currency payments exist as digital inputs to an online database describing specific transactions
It is also called a cryptocurrency because it uses encryption to verify transactions, and the goal of encryption is to provide security and protection for users, and bitcoin is the first cryptocurrency, which was founded in 2009 and is still the most famous to this day, and is often traded for profit, which leads Prices to rise
: The future of digital currencies
The last period witnessed a major shift in digital currencies, its growth was faster than ever, however its future was never clear, as many people entered into cryptocurrency trading for the first time during the Corona epidemic due to the lack of activities that they could spend money on.
The trend towards digital currencies that were previously only understood among a small community of investors has increased, but now they are a household name to everyone, and analysts estimate that the global cryptocurrency market will triple by 2030, reaching a valuation of close to 5 billion US dollars. Investors, companies and brands can ignore the rising tide of cryptocurrency for a long time, whether they want to buy or not.
: Bitcoin price crash and the future of digital currency
Increasing inflation and the global spread of the Corona virus, especially the mutated Omicron, has affected both cryptocurrencies and the stock market, Cardano has now fallen below $1, XRP has fallen below $0.60, and Shiba Inu has fallen to 0.00019 USD, the devaluation of the cryptocurrency is due to a combination of factors including rising inflation and the global spread of the Omicron mutated, as well as the Russian Central Bank’s proposal for a ban on cryptocurrency exchanges, and the UK’s tightening of advertising around crypto-assets.
: The main types of digital currencies
Bitcoin is the first cryptocurrency created, and everything else is collectively known as "altcoin" (a plural word derived from alternative coin). Their scalability, privacy, and the range of functions they support, here are the most important types of cryptocurrencies and the total market capitalization of each
Bitcoin (CRYPTO:BTC) $826 billion
Ethereum (CRYPTO:ETH) $390 billion
Binance Coin (CRYPTO:BNB) $79.5 billion
Cardano (CRYPTO:ADA) $66.3 billion
Dogecoin (CRYPTO:DOGE) $63.4 billion
Tether (CRYPTO:USDT) $58.2 billion
XRP (CRYPTO:XRP) $51.8 billion
Polkadot (CRYPTO:DOT) $30.5 billion
? Will the cryptocurrency market recover
Many experts expect the cryptocurrency’s decline to continue in the short term, however, there is still room for positivity in the long term. Guido Buehler, CEO of Swiss digital asset bank Ciba, suggested a new record could be set in 2022, telling Forbes: “Our internal valuation models suggest a price now between $50,000 and $75,000.”
: Currency market predictions for 2022
It is not possible to say exactly what will happen to the cryptocurrency market in 2022 and beyond, but by observing the overall trends of digital currencies, you will be able to make better investment decisions, and three particularly important details should be followed, which are as follows
Regulations in the United States and abroad.
Mass market adoption of cryptocurrency payments.
Exchange-traded funds based on Bitcoin and other digital currencies.
In the best-case scenario for 2022 there is real hope that a viable system can be developed for investors, consumers, cryptocurrency firms, and traditional banks, and with government entities establishing a legal framework and tax system, many retailers are likely to start accepting payments in digital currencies such as Bitcoin, and it should stimulate The increasing use of cryptocurrencies Regulatory agencies and politicians to take action, and (blockchain) systems should benefit from its widespread use.
The digital currency revolution can be delayed by several years, and assuming it finally arrives, the situation may look very different, and in the very long term, it seems unlikely that any government or group of countries will stop the idea of cryptocurrency completely, but they can slow its movement
