Bitcoin, the leading cryptocurrency, has been around for more than a decade. In the past, people used to say that Bitcoin is just a bubble that will burst sooner or later.
But the coronavirus pandemic and recent technological advancements have completely changed their mindsets. Many business owners have now realized that the traditional modes of the transaction can’t fulfill their needs in such critical times.
Many indicators are showing that Bitcoin isn’t just an opportunity for investors but it may become a major mode of transaction in the future. Bitcoin is now considered a valuable asset among most investors.
Many top businesses and institutions are also investing a specific portion of their portfolio in Bitcoin and other cryptocurrencies to be prepared for the future. In this article, we’ll be highlighting the important Bitcoin Trends for 2021 and 2022 to help you understand how they may affect our standards of living.
Bitcoin Regulation
The governments have finally started understanding the importance of Bitcoin and other cryptocurrencies. Therefore, many countries are now working on setting up several rules and regulations for Bitcoin and other cryptocurrencies.
The governments are mainly worried that criminals will start using these coins for illegal activities because they don’t have any control over these cryptocurrencies. And they can’t even track the source of a particular transaction due to user anonymity.
It may lead to some serious consequences in the future. Therefore, many countries are now looking for different ways to regularize cryptos.
Another reason why governments are thinking about it is that some influencers are trying to control the entire crypto market with several tactics due to which many people have lost their money.
So, the governments are seriously concerned about securing the interest of their citizens. Following these trends, El Salvador became the first country to accept Bitcoin as a legal tender in June 2021. Similarly, many other countries like the USA, Canada, Australia, and even some Asian and European countries are looking for ways to regularize Bitcoin and other cryptocurrencies.
It doesn’t mean that Bitcoin will be accepted as a legal tender in all countries. Some countries like China are banning all activities related to cryptocurrencies. So, investors must carefully monitor the news if they’re willing to invest in Bitcoin.
An Important mode of Transaction
Cryptocurrencies will soon become an important mode of transaction. Blockchain technology provides a secure way to transfer money to anyone in the world. The users don’t need to worry about scams and hacking attempts because it’s quite difficult to decrypt the blocks of a blockchain.
The developers are continuously improving the transaction speed to attract more businesses. Moreover, the use of smart contracts is a secure option for businesses dealing with clients internationally.
Many businesses have already started accepting Bitcoin and other coins for different products and services. However, many are still reluctant because they’re waiting for their local government’s decision regarding Bitcoin and other digital currencies.
Once the governments started regularizing Bitcoin, we’ll see a huge number of businesses using Bitcoin and other cryptocurrencies as an important mode of transaction.
Crypto Interest Accounts
Some crypto exchanges are now playing the role of digital banks where users can keep their digital assets to earn some interest. The benefit of these accounts is that the investors can consistently earn money while holding their assets.
These interest accounts are also an attractive option for short-term holders as the interest amount is added to the account on a weekly basis. Some experts say that some crypto projects are planning to offer different kinds of payouts like dividends and bonuses etc.
So, it will also attract investors who like to invest their money in these kinds of projects. However, it may take some time to see such a massive development in the industry. But you can start taking advantage of crypto interest accounts right from today as thousands of users have already added their assets worth millions in these accounts.
BTC ETF Approval
BTC ETF Approval is a great step for people who don’t feel comfortable with the crypto exchanges and only prefer working with their existing brokers. For many investors, crypto exchanges are a completely unique experience. And their concerns are valid because they can’t file a lawsuit against these exchanges if anything goes wrong.
For instance, many Binance users got liquidated during the BTC dump in the month of March because they couldn’t sell their assets due to a glitch in the Binance app. And nobody could do anything about it.
However, BITO Bitcoin ETF is an opportunity for investors who only feel secure with their traditional brokers. Bitcoin ETF made its debut in New York Stock Exchange in Oct 2021. And it attracted a huge amount of investors within a short span of time. Now, the second leading cryptocurrency Ethereum’s management has also increased efforts to get the ETF approval.
But some investors still think that BITO Bitcoin ETF isn’t enough for peace of mind. This fund only holds the crypto future contracts and it doesn’t hold Bitcoin directly. However, these developments show that Bitcoin is here to stay. And it shows that Bitcoin will change the dynamics of our banking systems sooner than later.
Crypto Tourism
Bitcoin is gradually establishing its position in different industries. The tourism industry became one of the leading industries to accept cryptocurrencies when a travel company Travala announced that the customers can now pay for their services via digital currencies. The cryptocurrency holders are quite happy with this decision as they don’t need to change their assets into fiat currency to travel the world.
Conclusion
Bitcoin has now become the talk of the town. And people are now seriously thinking about using these assets for different purposes. The authorities are now even talking about setting rules and regulations for cryptocurrencies at the State level. So, we can say Bitcoin has made a massive growth over years. And we can now expect it to become an essential mode of transaction in the future.