CRYPTOCURRENCY DEVELOPMENT TRENDS IN 2022

The rapid development of cryptocurrency makes it possible to attract not only ordinary users for investment, but also large corporations. This growth in digital money is due to the fact that technology is moving forward, and the world is gradually moving towards the transition to the use of decentralized funds. To make the right investment, you need to figure out promising cryptocurrencies in 2022.

What is cryptocurrency?

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To understand the whole system of functioning and growth of electronic money, it is necessary to understand the very concept of cryptocurrency. By its characteristics, these are digital funds that do not use the services of banks when organizing a payment system and, accordingly, are not controlled by them. This enables the owners to carry out various types of transactions, regardless of location. These funds are not material substance. They cannot be carried with us in the form we are accustomed to. All transactions with these currencies are carried out only using an electronic database, since the currency has the form of a digital code. All transaction records are entered into an open register, and storage takes place on the owners’ electronic wallets.

The cryptocurrency got its name due to the encryption method, which is actively used when verifying transactions of participants. Thanks to this method, a high level of currency security is ensured.

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To have control over the currency and ensure its decentralization, blockchain is used. This is a kind of open database, all the information of which is distributed to various points.

The growing popularity and value of digital money is due to the fact that completely different events that take place not only in the field of cryptocurrency, but also in the world as a whole, affect their formation.

Reasons for the popularity of cryptocurrencies

Initially, this monetary unit was created to ensure the availability of its use to any person.  The very first cryptocurrency was Bitcoin, which at the time of its creation was worth about one dollar. Today its cost is more than 60 thousand dollars, and it is unlikely that this figure will drop sharply in 2022. There has also been a constant growth in other types of digital money.

Constant monitoring of the growth of the cryptocurrency rate ensures it gets into the main news feeds of all countries. This only fuels interest in it, and also gives people an understanding of which currency is the best to invest in.

2. Tool to protect against inflationary influences.

This is due to the low percentage of digital currency. Such investments made it possible not only to create the necessary level of protection, but also became a tool for generating income. Also, many investors began to invest in cryptocurrencies in order to save them. The example of Bitcoin shows that this year they began to buy more than gold.

3. Movement of the course along the parabolic system.

Constant fluctuations in the growth and fall of the exchange rate cannot but attract new investors. This is due to the fact that by buying coins at a low price, they can subsequently be sold on more favorable terms. Peter Brandt, who is an analyst and trader, has published a chart that shows that the value of Bitcoin can reach 200 thousand dollars.

This will lead to another increase in the demand for coins. Since no cryptocurrency depends on the influence of oil production volumes, exchange rates and other factors, its growth can only be influenced by the profitability from the acquisition and the popularity of one or another type of digital money.

Also, the actions of banks have an active influence on increasing close attention to the cryptocurrency market. Starting in 2020, their actions were supposed to be aimed at combating the outbreak of the pandemic, and led to inflation of the dollar and euro, which could not but affect the assets of large depositors. This has led giant companies, millionaires or large enterprises to consider cryptocurrency as a way to store their assets. All of these actions will inevitably lead to an increase in interest, which will continue to grow in 2022.

Promising cryptocurrencies 2022

Acquisition of cryptocurrency is a trend in 2021. The same trend will not give up its positions in 2022. This is due to the fact that the world of digital money is more and more covered by a wave of popularity, and this leads to the emergence of new investments, and, accordingly, to an increase in value.

Following trends and exploring growth opportunities will help you not only make the right decision, but also take a winning position for profit. Therefore, I am shifting to consider several cryptocurrency options that could become the most promising cryptocurrencies in 2022.

Bitcoin forecast for the future 2022

As soon as we touch on the topic of cryptocurrency, Bitcoin immediately comes to mind. This is the first type of coin that appeared on the cryptocurrency market and whose popularity does not remain in place, but continues to grow steadily. The resource of this coin has a limited indicator. It is 21 million coins, this helps the currency to stay afloat and not lose its characteristics.

Today, the coin is not the only one, but it is considered a benchmark for creating and comparing other options. Now the popularity of Bitcoin is compared only with gold, since these two instruments are as similar as possible to each other. Both types are used for holding assets, hedging and are directly proportional to the growth in the number of users. Bitcoin is considered one of the safest and most stable types of cryptocurrencies that exist at the moment. He was able to save his investors from the COVID-19 crisis that began back in 2020. Most of them made big profits by investing their assets in this coin and thus keeping them from the effects of inflation.

Recently, the popularity of Bitcoin has given a leap again as a result of receiving large investments from Elon Musk. In early 2021, he allocated $ 1.5 billion to buy 48 thousand bitcoin coins. This led to a surge in popularity and an increase in the value of the currency, as can be seen by looking at the chart.