If you’re a cryptocurrency fan, you’ve probably been wondering how long the world’s leading crypto, Bitcoin, can continue to reach new heights. For those who like one-year timelines, the value of BTC rose from approximately $16,716 to $60,682 between mid-November of last year and now. Then, prices only broke through the $60,000 mark a few times in early 2021, dipped below $30,000 in July, and then shot back up. Now, as 2021 comes to a close, it has been hovering above the $60,000 level for more than a month. Can these lofty heights go on, and carry into 2022 and perhaps beyond? Here are critical factors to keep in mind if you want to make a reliable forecast.
Watch the Taproot Update
Bitcoin underwent a major change in development during the past year, successfully rolling out an
update to the technology called Taproot, and it could have a massive impact on the long-term value of
BTC. It’s enough to know that Taproot promises to make the coins’ smart contract capabilities much
stronger and aid its widespread acceptance in dozens of emerging markets.
Trading Activity is Increasing
For the first few years of its existence, bitcoin’s traders and investors were an insulated bunch, considered well outside the mainstream. That’s all changed. As 2022 approaches, those who want to invest and trade bitcoin can do so in a number of ways. For example, CFDs (contracts for difference) offer an alternative way for newcomers to get exposure within the crypto marketplace. CFDs are much simpler and faster vehicles for trading than using the cryptocurrency exchanges.
That’s primarily because using CFDs entails no direct ownership of an asset. The trader merely predicts whether prices will rise or fall. Trading on exchanges means having to purchase coins outright, secure them in a wallet, find a buyer when you wish to sell, and complete a complex transaction. Keep an eye on the volume of buying and selling taking place on exchanges and on platforms that allow CFD trading. As it increases, bitcoin’s general worth as an asset class could rise.
Wide Adoption as a Payment Method Will Boost the Coin
In emerging markets, central banks are having a tough time fighting off a global wave of inflation, energy
price hikes, and logistical problems. Likewise, developed nations are facing their own problems, mostly
centered on loose monetary strategies and creeping inflationary pressure. While all those factors are
less than ideal for any country’s economy, they are often quite helpful for the long-term health of all
cryptocurrencies, especially the leaders of the niche.
For so many investors and every day working people, BTC serves as a kind of safe haven, especially in
comparison to local forms of money. Several African and South American nations, for example, have
been looking to bitcoin as a more stable version of money than their homegrown currencies.
Additionally, many retail, wholesale, and institutional entities now accept bitcoin as a legal tender form
of payment for goods and services. That portends very good things for the near-term and long-term