DeutschThe constant turbulent price corrections of Bitcoin (BTC) in the crypto universe always trigger discussions about the future and the potential of the cryptocurrency of the first hour. The positions of the participants in such debates move between two extreme poles. Some observers assume that the boom of the currency has come to an end for the time being. Other experts, however, take a completely different position. They consider the correction of the Bitcoin price during the last quarter of 2021 to be a long overdue development in order to prevent a price bubble of the leading digital currency and a subsequent even more significant slump. Our experts are also constantly dealing with the question of which direction the currency and the blockchain system of Bitcoin will take in the future.
Various features have long indicated that the coin and the market as a whole could still have a bright future despite all the current concerns in connection with the global challenges.
Difficult Situation on the Crypto Market at the End of the Year
Admittedly, by the editorial deadline, Bitcoin had dropped almost USD 16,000 of its last high within a month, from a level above USD 63,300 in mid-December. On the one hand, the BTC price subsequently recorded a significant increase again in the second December. A major reason for the positive assessment of the world’s first digital currency is less in the findings of chart analysis than in the technological possibilities. Although there are increasingly more use cases for the Bitcoin Blockchain, the full potential of the network is far from exhausted. A whole range of industry experts rather assume that the possibilities of the system have not yet been fully recognised and used.
Even after more than Ten Years, Bitcoin is Still at the Very Beginning
In other words, you could say that so far, users – whether investors or providers of crypto services – are only scratching the surface of what the Bitcoin blockchain is capable of. There are therefore good arguments for assuming that the next stage of development of Bitcoin will not be long in coming. The prevailing optimism of many BTC bulls seems by no means unfounded. Price adjustments could herald the next rally. We also know such phenomena from the classic stock market. But even without looking at the price of the currency alone, many members of the crypto community express themselves positively about the future of the network. In any case, skepticism is not part of the standard vocabulary of the majority of Bitcoin fans. It is precisely this attitude that distinguishes crypto fans from investors in other sectors of the financial market, to which cryptocurrencies now increasingly belong.
Possible Image Change through more Ecological Awareness in the Network
A sticking point for further positive Bitcoin trends is without question the ecological problems. Currently, the energy-intensive and anything but environmentally friendly Bitcoin mining is considered a difficulty on the way to mass suitability. What is certain for convinced users, however, is that Bitcoin will succeed in taking exactly this step towards the important interface between the traditional financial world and the crypto industry. Through changes and adjustments to the technology, the currency should also gradually leave its image as an environmental burden behind. The increasing improvements in the consensus process in mining will be an essential basis in this point. However, developments in this point are progressing more slowly than, for example, in the Ethereum network. This, too, must not be concealed in connection despite all the positive trends in the Bitcoin system.
Bloomberg: Report Expects Faster Crypto Adoption in the USA
Nevertheless, the current developments and plans are an important signal. Also interesting in connection with the positive Bitcoin expectation: A new report by the information service Bloomberg, which was published in mid-December under the name “Global Cryptocurrencies: 2022 Outlook”, raises the hope that the year 2022 could become a significant signpost for the BTC and the entire market. The authors of the report expect a noticeable increase in crypto acceptance for the new year. In view of the heavy losses that Bitcoin and many altcoins have suffered in recent weeks, such positive assessments are certainly not comprehensible to every crypto holder. Bitcoin, for example, lost more than 27 percent within just four weeks up to the cut-off date of December 14, 2021. Most recently, at least a certain relaxation was emerging.
China’s Crypto-Hostile Policy as an Opportunity for the USA
The Bloomberg report comes to the favorable forecast mainly for one reason. While China is increasingly cracking down on crypto companies and mining, analysts in the U.S. expect a significantly relaxed crypto policy. The industry has been pinning its hopes on Treasury Secretary Janet Yellen and SEC Chairman Gary Gensler for months. Both are considered less critical of digital currencies than their respective predecessors under President Donald Trump.
NFTs for Cryptocurrencies as an Essential Factor
According to the report, an important signal effect could be exerted not least by the so-called non-fungible tokens (NFTs) in addition to stablecoins pegged to the US dollar. The NFT market has been on a rapid growth course for some time. If the USA seizes the opportunity and decides to accept more crypto, Bitcoin could be facing a new breakout in the coming months. Falling interest rates for US bonds and stocks could in turn make a contribution, according to the analysts. A stronger adaptation of digital currencies by the USA would also be important with a view to the previously high fluctuation range (volatility) of Bitcoin. The experts at Bloomberg can even imagine an increase in the Bitcoin price to USD 100,000 from the year 2022.
A legal acceptance of the BTC as a means of storing value would undoubtedly have an influence on the price trend here. El Salvador, for example, recently decided to take this step. Other countries could follow and help the Bitcoin price to new records. The USA will certainly not go that far. Nevertheless, the country could become a pioneer, as the Bloomberg analysis suggests.
Are We Soon to Expect the Next Record Hunt of Bitcoin?
This could mean that the best time for Bitcoin and Co. mentioned at the beginning could come faster than many investors can imagine in the currently tense market situation. And crypto experts cite another point when it comes to the next step towards the adaptation of the currency. The industry is still in its infancy. Even real experts are hardly able to make really reliable forecasts so far. However, there is much to suggest that blockchain technology and cryptocurrencies could soon climb the next level towards the mainstream. New developments should help the protocol to gain greater popularity. An important keyword here is layer 2 solutions only optimization of the scalability of the network and more sustainability. If the developers can achieve the technological goals, the Bitcoin price could reach even higher spheres than the one mentioned by Bloomberg within a decade.
Some analysts even categorically rule out prices in the seven-figure range by 2030. That’s right: it’s still a long way to go. However, digital currency systems have repeatedly proven since their introduction that they hold surprises even for real insiders.
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