Will Crypto Rise Again? Predictions For The Future Growth
In our previous article, we tried to paint a general picture of the cryptocurrency market as it is today. However, it is not yet clear what the future holds for cryptocurrencies. Will they put investors on an unexpected path for the foreseeable future, short or sell? Will Bitcoin maintain its volatility and will the cryptocurrency rise again in the near future? Let's take a test and see what the future may hold for all market participants and cryptocurrency enthusiasts.
Will the cryptocurrency grow? Market expectations
Cryptocurrency prices may fall further in 2022. The market is less than a month away from a deep recession. Bitcoin fell to a new two-year low in November, while the rest of the market felt strong pressure from sellers after the crash of cryptocurrency exchange FTX. It affected several small companies and stock exchanges. The biggest victim of the FTX crash so far has been crypto company Blockfy, which filed for bankruptcy on November 28. New Jersey-based BlockFi said in a bankruptcy filing that it has more than 100,000 borrowers with between $1 billion and $10 billion in assets and liabilities. Blockfy also said that it owed FTX $275 million.
With the aftershock still being felt in the market, University of Sussex finance professor Carol Alexander expects Bitcoin to drop to $10,000, negating most of the gains made over the past year and a half. “If I were an investor right now, I would think about getting out of Bitcoin quickly because its price is likely to drop next year,” Alexander said. His bearish call is based on the assumption that Bitcoin has "no fundamental value" and is more of a "toy" than an investment.
However, not all experts expect a market crash. Many believe that Bitcoin will go up. Yuya Hasegawa, a cryptocurrency market analyst at Japanese digital asset exchange Bitbank, believes the biggest risk factor is quantitative easing from the Fed. He believes this has been addressed and likely factored into the cost. According to Hasegawa, Bitcoin was mostly in the $20,000 range over the summer, which led to corresponding trading activity in the options market, contributing to Bitcoin's consolidation.
Increased acceptance of Bitcoin
According to ExplodingTopics, financial forecasters predict that the global cryptocurrency market will reach $4.94 billion by 2030, corresponding to an average annual growth rate of approximately 12.8%. Rick Edelman, founder of the Digital Asset Council of Financial Professionals, predicts that by the end of 2022, more than 500 million people around the world will own Bitcoin. There are also many experts who predict that the wider use will increase the price of Bitcoin. 1500% in the next decade.
Brian Gross, head of the ICHI cryptocurrency platform network, believes that decentralized finance is likely to increase cryptocurrency adoption and that decentralized autonomous organizations (DAOs) "could be the fastest growing area of cryptocurrency." DeFi aims to recreate traditional financial products without intermediaries, and DAO can be considered a new online community. Deposits in DeFi services are expected to top $200 billion by 2021, with demand expected to grow as the field develops.
We may see more countries follow El Salvador's lead and accept Bitcoin as legal tender. Many, like Navik co-founder Abhimanyu Kumar, believe that the rise of blockchain gaming will push more people into cryptocurrencies. “It will boost the acceptance curves due to the nature of the environment. It's fun and interesting. It makes cryptocurrency easier to understand.”
It is true that the more the game evolves, the more cryptocurrency is in fashion. We recently took a look at Engine, a legacy gaming platform that publishes new game titles on its blockchain and is succeeding despite the general market downturn.
Negative thoughts about the cryptocurrency market
In our previous article, we talked about people like Elon Musk who strongly believe in the future of Bitcoin and cryptocurrencies. This is what other cryptocurrency tycoons think.
Alexander Byrd, a professor of economics at Stockholm University and a famous showman, has an interesting take on Bitcoin and its future. “It turns out that nothing is more vulnerable to inflation (and high electricity bills) than speculative cryptocurrencies. We told you."
Warren Buffett remains steadfast in his skeptical stance on cryptocurrencies. At Berkshire Hathaway's annual meeting of shareholders in May 2022, he said that it is not a productive asset and does not produce anything tangible. He told Berkshire shareholders that he would not buy bitcoin even if it fell to $25.
“I don't know if it will go up or down next year, five or 10 years from now. But I'm sure of one thing: it produces nothing," Buffett said. "There's magic in it, and people associate magic with a lot of things." Buffett previously referred to Bitcoin as "rat poison squared." It's true that Warren Buffett doesn't own Bitcoin directly, but his 2.3% stake in NuBank gives him indirect influence over the asset.
Bill Gates also does not support the concept of cryptocurrency. Speaking at TechCrunch's June 2022 panel on climate change, the billionaire Microsoft co-founder described the phenomenon as "100% based on a mostly nonsensical theory," referring to the idea that overvalued assets will rise in value. if there are enough . From them. Investors are willing to pay more for them.
Positive Feedback on Crypto Rise
While many famous people are skeptical of cryptocurrencies, some enthusiastically support them. For example, Kraken CEO Jesse Powell told Bloomberg that people should think of Bitcoin as a five-year investment:
It goes up and down day by day, week by week. You don't want to trade short term. It is more of a buy and hold investment.
Don't invest more than you can afford to lose. Don't play with 50% bitcoin rent every week. You will be able to really consider this investment and keep it for five to ten years.
Virgin Group founder Richard Branson has publicly endorsed Bitcoin as a safe investment. Despite Bitcoin's underperformance, Branson still believes that cryptocurrencies are worth investing in. According to him, investors should allocate a small part of their portfolio to BTC. To show his support for cryptocurrency, Branson said that his space company Virgin Galactic Holdings will accept BTC payments from aspiring astronauts.
Peter Thiel, the co-founder of PayPal, is a cryptocurrency venture capitalist and tried to call investors against cryptocurrency while speaking at a cryptocurrency conference in Miami. Thiel calls Warren Buffett a "social grandpa" after Buffett's earlier comments cast doubt on the value of cryptocurrency. In addition to Buffett, Thiel criticized JPMorgan CEO Jamie Dimon and BlackRock CEO Larry Fink. "They need to allocate some money to their bitcoins," he said. - We have to return them.
The result
Whether you think Bitcoin is on the verge of a new breakthrough or a crash, one thing is for sure: cryptocurrencies remain a controversial topic. With opposing views on both sides of the barricade, cryptocurrency continues its journey into an unknown future.
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