The rapid development of cryptocurrencies is an opportunity for investment not only for regular users, but for big corporations too. This growth of digital money is a result of technological improvements and the world is constantly trying to use decentralized allocations as a paying method. If you want to make good investments, you will need to understand which cryptocurrencies will be popular in 2022.
What is cryptocurrency?
To understand the way digital money is functioning and growing, you should know what cryptocurrency is. Normally cryptocurrencies do not use bank services, neither are they controlled by them. This allows the users to perform a variety of transactions, regardless of their location. Moreover, this type of money is not material. You can not have them in cash. Any operation done with these currencies are done by the means a special electronic database provides, because the currency is actually a digital code. Each transaction is added to an open register, and you keep the currency in a digital wallet.
The naming cryptocurrency is derived from the method of cipher, which is actively used to check the users’ transactions. Also, this method provides a high security level.
The blockchain technology is used to control the currency and provides decentralization. It is sort of an open database, where all the information is stored in the right place.
The growth in popularity and cost of digital money is caused by different events, in the cryptocurrency world and in the entire world too.
Why is cryptocurrency popular?
At the very beginning this currency unit was designed for the free usage of any human being. The idea was that the prestige, place of living and financial stability will influence it. The first cryptocurrency was Bitcoin, which at the release costed around $1. Today it costs about 60 thousand dollars, and it is doubtful whether it will cost less in 2022. You might have noticed that the other cryptocurrencies are growing in cost too. There is a number of reasons for it:
1. Mass media influence. The biggest national news programs are monitoring the cost of the cryptocurrencies, so it is always in the public eye. It gives people a basic understanding of where to invest their money, and fuels the interest in it.
2. It is an instrument to protect the money from inflation processes, due to digital currencies having low pro cent rate. This type of investment provides a high security and income level. A lot of investors buy cryptocurrencies to save their money. For example, people have bought more Bitcoin than gold this year.
3. The Bitcoin course is a parabola. The permanent growth and falling of the coin is always attracting new investors. It means that you can buy Bitcoin cheap and then sell when it gets expensive. Peter Brandt, is an analyst and trader, he has published the graphic, where it is clearly visible, that Bitcoin may cost 200 thousands dollars.
This will lead to a greater demand of the coins, since there is no cryptocurrency that depends on the total oil production volume, exchange rates, or any other factors, the growth is proportional to popularity of a coin and the income a person gets for buying it.
The attention to the cryptocurrencies market growth when banks do certain actions. In 2020 the banks should have acted and fought the pandemic, but eventually it resulted in dollar and euro inflation, and of course major investors suffered because of it too. That is why, giant companies, billionaires and others took into consideration cryptocurrencies as a way to save their assets. All together this will lead to a huge interest growth in the crypto market in 2022.
Which trends in the crypto market will be the best investment in 2022?
Buying cryptocurrencies in 2021 is a trend. And still, it will be a trend in 2022. The immense wave of interest in the crypto market is going to hit the digital market world. It will lead to new investments and the value will increase.
If you follow the trends and find new opportunities for growth, you will definitely make the right decision, and you will find a vantage position that will lead to income. I would like to recommend a few cryptocurrencies, which might become a cryptocurrency trend for investment in 2022.
If we talk about cryptocurrencies, the first thing that comes to mind is Bitcoin. It is the first coin on the market and is the most popular one, also it is constantly growing. However, the number of Bitcoins is limited. There can be only 21 million coins, this keeps the coin floating and growing.
Today there are a lot of coins, but this one is a benchmark in the crypto world. Now, Bitcoin is as popular as gold. Both are used to save the assets, as a hedging instrument, and grow as the community grows. Bitcoin is considered to be one of the safest and most stable cryptocurrency, which exist at the moment. It has saved the investors from the COVID-19 crisis, which started in 2020. The majority has got a huge income for choosing this coin and hence saving their assets from inflation.
Recently, Elon Musk invested a lot of money, and as a result Bitcoin value increased rapidly. At the beginning of 2021 he bought 48 thousand coins, which cost him 1.5 billion dollars. You can see how the value increased on the following graphic.
As you might have noticed, Bitcoin value was 30 to 40 thousand dollars, and then it jumped to 64 thousand dollars.
This has drawn the attention of the investors back to this cryptocurrency.
The popularity of Bitcoin never decreases, so in 2022 it will still be top 1 within the trends. There are some analysts, who believe that Bitcoin value might rise to 100 thousand dollars. This can make Bitcoin a global leader and spread it around the world.
This cryptocurrency is in second place according to its popularity. However, we should rather call it a crypto platform instead of a currency. Ethereum is working on a smart contact base and is a ground platform for a few applications on the crypto market.
Also, you can buy and sell goods by using Ethereum on PayPal. In addition, this option increased the value of the coin, and made it even more popular.
Ethereum — is one of those few coins that have a great potential on blockchain, in mining and technology. Just like Bitcoin, Ethereum value has been increasing since the beginning of the year.
This trend proves that we should keep an eye on Ethereum, because its value might be even higher. And there is one thing that Ethereum has, while Bitcoin is not having it: the currency is still developing and is having a steady ground. The way this coin is coded is changing often, and this keeps the coin alive and makes it competitive.
One of the major changes done recently is the new protocol called Constantinople. It was designed to increase the safety level of the platform, and to make it faster. In the past, Ethereum could work only on 15 transactions per second, but now the number should be higher, and the popularity too. The forecast is that Ethereum might cost 17372 dollars at the end of the year, and at the beginning of 2022 it should be around 18874 dollars.
Ripple, also known as XRP
This cryptocurrency is a token of the eponymous company. The aim of this coin is a complete integration of Blockchain into banking. Ripple wants their coin to be used for transactions between banks. They try to build better relationships all the time, which makes this coin one of the most progressive cryptocurrencies. Banks appreciate this sort of cooperation, and they are developing and improving to be able to integrate their payment details.
One more thing to be mentioned is that Ripple can make data transfer and global transactions more simple and fast, and the company also wants to cooperate with other paying methods.
This token has the reputation of a safe digital currency, which keeps it in the top 5 currencies on the market.
Recently, the cooperation of Ripple and MoneyGram was announced. This led to a value increase of this coin.
This collaboration offers the opportunity to use XRP for bank transfers. Now, it is actively used for transactions between the USA and Mexico. And it proves that the Ripple platform can substitute global paying systems, such as MasterCard or Visa. Furthermore, the expanses will not be that high and the data processing — faster.
Analysts say that Ripple can substitute SWIFT in the near future. It is a great solution for system integration, which can not be said about blockchains.
Today XRP costs around 1.5 dollars, but analysts say that it may cost up to 5 dollars in the next 5 years. So, isn’t it a great fast developing opportunity for investment?
Litecoin was created in 2011. Its main task is to offer the lowest commission for transactions, regardless of the place of living and location of the owner. It can become a superb solution as a paying method for general goods.
A Bitcoin benchmark was used to create this coin. And now Litecoin is one of the most popular and successful altcoins.
Altcoin naming is derived from the fact that the base code used for creation is identical to the benchmark code of Bitcoin. It is sort of a younger alternative to the coin. If we compare Bitcoin to gold, then Litecoin is silver.
The currency assets are 84 million units. But this is not making the coin less popular. What investors really like about Litecoin, is the fact that the transaction process speed is really high.
As this coin is a subsidiary, the value changes just when Bitcoin does. As Bitcoin is one of the most expensive coins on the market, the new investors consider Litecoin as a great way to enter the crypto market and hold a strong position, since the value of this coin is quite low at the moment.
The value of Litecoin is increasing, and the analysts say that it will grow up to 2022.
Even if the price falls, this coin will manage to remedy the situation and soon after to grow.
More and more new coins appear on the horizon of the crypto market. EOS is one of them. The development of this coin ended in 2017, and not it is just starting to make its way on the market.
This platform is already known as an option for decentralized applications, and has a strong potential in data processing speed. Today EOS can work on 1 million transactions per second, which really is an immense speed.
The developers have also provided the platform with a universal system of personal data security for the wallets and users. In addition, a number of technical functions were introduced. Now, EOS is the only one coin with such a vast functionality available. For example:
- Personal accounts
- Big databases
- Application planning on a huge number of cores and CPU.
The platform is actively using an artificial intellect system for transactions, which provides a high trust level and transparency of transfers.
Ethereum's developers are using EOS as a platform for their further improvement. They allow new projects to enter a higher technology level.
If we look at all the blockchains made in China, only EOS is still on the top of the list, because the platform is a perfect fit for commercial transactions. It can process a colossal number of transactions, and simplifies the scaling.
No one really knows the future of this coin, even the experts. After a rapid growth in 2018, when the value increased over 200%, the popularity has fallen. Now the value is rising, which is an indicator that the coin is still in demand.
Some analysts believe that the value will increase in the next 4 years.
This might be an indicator that potential investors appreciate this type of digital money, and 2022 is a good point to start for EOS.
What conclusion can we make after analyzing all this data?
To be logical, the biggest potential is obviously in Bitcoin. This currency is permanently in the top and the value is constantly increasing. For big companies it still will be a leader in 2022.
For instance, Starbucks accepts Bitcoin as a paying method. It proves that retail trade is gradually integrating the crypto market, which makes digital money even more popular.
Some game developing companies want to use crypto coins as an in-game token. And this will popularize the cryptocurrencies too, by making them more accessible.
If you are a regular holder or a small investor Ethereum, Litecoin, Ripple, and EOS are your solution. You can buy them at a low cost now, but they have a high security and development level. For long term investment Litecoin is the best option, because it is going to grow for a while.
Ripple will increase your income if you invest in it. The development will go and grow, because the company has signed a couple of contracts in 2019. Ripple will introduce banking systems into its platform, which will be a new age of development for it.
Ripple has proved to become a shield for banking systems, which can save them billions of dollars, that is why so many contracts were signed. Analysts confirm that banks are willing to invest in this platform. The process started in 2019, and it is definitely going to continue.
Anyway, all the information we have at the moment says that the popularization of the crypto market will continue the entire 2022. A lot of giant companies will invest in digital money, and mass media will announce it. These events will lead to an inevitable cryptocurrency growth, and a higher demand for Bitcoin and other coins.