Many of the oddest headlines of 2021 were about cryptocurrency. Activists hailed digital currencies as a game-changing technology that has the ability to develop new economies and empower those without bank accounts. Crypto’s large environmental footprint, as well as its appeal in online crime, have been cited by critics. It will be difficult to bridge the gap between these two points of view.
Crypto moves further into the mainstream
Big businesses are trying to figure out how to incorporate cryptocurrencies into their operations. This year, everyone from hedge fund managers to Starbucks executives is making decisions that will have an impact on how we utilize digital money.
When we hear about cryptocurrencies in the news, we usually think of Tesla CEO Elon Musk’s comments, overnight billionaires, high-end digital art, and hacks. The larger, more fundamental changes, on the other hand, are frequently less showy and attention-getting than whatever crypto-hype machine is dominating Twitter at the time.
NFTs create new ownership opportunities, and remix old ones
NFT is a buzzword that a lot of people heard in 2021. NFTs are becoming increasingly popular in the art and collectibles markets as a novel means to determine ownership of digital goods utilizing a blockchain ledger. The Bored Ape Yacht Club was one of the most prominent NFT collections of 2021. So, there you have it.
NFTs’ promise extends far beyond bizarre digital artworks. NFTs are also used to buy digital land in virtual worlds and to own, license, and produce next-generation music. Some analysts believe that in the future, NFTs will provide access to special sales or limited-edition products. Consider using an NFT to purchase a concert ticket. Or when you go online to play your favorite video game? All of this is expected to happen in 2022.
Bigger hacks and bigger ransoms
In 2021, cryptocurrency was used to facilitate ransomware payments of millions of dollars. This is due to the fact that digital currencies have qualities that make them appealing to thieves. They’re difficult to track, have no borders, and are nearly impossible to unwind after the money is made.
Decentralized finance, a small but growing industry on the cryptocurrency frontier, is expected to be a hot target for cybercriminals in 2022, according to Grigg and others. Decentralized finance, sometimes known as DeFi, refers to money that is not controlled by a central authority or institution. People can connect directly with DeFi goods over a dispersed network instead of depending on a bank or credit card network. DeFi is a fast-evolving, highly technological field with immense potential, despite the fact that it is still in its infancy. As a result, it’s drawn a lot of attention and money, making it perfect for illicit activity.
You will hear more about stable coins
Because of its volatility, Bitcoin and other cryptocurrencies have made headlines. At the hyper-speed of the internet, you can become a millionaire or lose everything. However, try buying a latte with bitcoin, and the volatility can quickly become perplexing.
Stablecoins are a type of cryptocurrency. This type of cryptocurrency, which is linked to an underlying asset, helps to alleviate some of the risks. Stablecoins may play a critical role in transforming cryptocurrency into a tool that we can use to perform routine transactions.
New Crypto rules appear on the horizon
Cryptocurrency is a significant and important thing, according to Washington legislators. However, they are clearly striving to comprehend it. It may only be a matter of time before a hapless representative out of their element gives crypto its “series of tubes” moment.
Six executives from cryptocurrency companies were summoned to testify before the House Financial Services Committee in December, where they discussed possible legislative pathways. The question of whether stablecoin issuers should be deemed banks, when to tax cryptocurrencies, and how to develop practical laws in a highly technological and complicated industry have all piqued lawmakers’ interest in the United States. This is tricky territory. It will take time to develop the appropriate standards.