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Bitcoin faces uncertainty in 2022 after a record year

London: Bitcoin prices hit a record high in 2021 thanks to traditional financial support, but cryptocurrency experts are having a hard time predicting next year’s outcomes in the volatile sector. .. Bitcoin, which more than tripled in value to $ 60,000 between December and April 2020, lost some brilliance to trade for less than $ 50,000 for the New Year.

Loukas Lagoudis, Executive Director of Cryptocurrency Investment Fund ARK36, said:

However, he added during 2022 that “sustainable adoption of digital assets by institutional investors and their further integration into legacy financial systems will be the main drivers of cryptospace growth.” rice field.

“There is no cryptographic certainty”

The rise in Bitcoin in 2021 was in line with the growing desire for Wall Street cryptocurrencies. The record high for April came from the stock market debut of the cryptocurrency exchange Coinbase. The peak of over $ 66,000 in October followed the launch of Bitcoin futures exchange-traded funds (ETFs) or a type of financial product on the New York Stock Exchange.

Tesla boss Elon Musk helped the market rise and fall with controversial tweets about cryptocurrencies. The move of Bitcoin to fiat currency by El Salvador in September was also impressive. However, while China’s crackdown on cryptocurrency trading and mining has put pressure on Bitcoin, the risks of broader regulatory measures from countries such as Europe and the United States are weighed heavily.

“Cryptocurrencies are uncertain and you don’t have to worry about regulation,” said Huong Hauduc, legal advisor to the digital asset exchange Bequant. “But what is certain is that there is much more demand for cryptographic regulation, whether to strengthen consumer protection or to clarify institutional rules.”
Created following the global financial crisis of 2008, Bitcoin initially aimed to promote the Rivertarian ideals and overthrow traditional and financial institutions such as central banks. Nowadays, climate change watchers are spotlighting the vast amount of electricity used to power the computers needed to unearth new Bitcoin tokens.

More competition

Bitcoin is at risk of intensifying competition, especially from its closest rival Ethereum, in 2022, according to some analysts. In November, Twitter co-founder and CEO Jack Dorsey announced his departure from the social media platform and decided to focus on digital payments companies looking to expand into cryptocurrencies.

For now, Bitcoin remains the dominant player. According to the specialized site CoinGecko, the cryptocurrency sector has a total market value of $ 23.6 trillion, with Bitcoin worth a total of $ 900 billion.

For analyst Frank Downing, “Bitcoin is reluctant to evolve its design” and is actually “necessary to function as true global money” compared to something like Ethereum. A feature that provides stability and consistency. ” – AFP

https://news.kuwaittimes.net/website/bitcoin-faces-uncertain-2022-after-record-year/ Bitcoin faces uncertainty in 2022 after a record year

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