Review of the most important cryptocurrency events of 2022

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The cryptocurrency market is gaining momentum every year, new investments are pouring into it, new projects are being created, and the number of users is growing. It is possible that we will soon use cryptocurrencies for everyday purchases and payments; after all, this is what Bitcoin was designed for.

In addition to practical benefits, the market provides the opportunity to invest and make a profit due to the growth of coins. There are already 1,890 different cryptocurrency assets, and their number is only increasing every day. Therefore, I am often asked which coin is better to invest in today in order to get a good profit tomorrow, which cryptocurrency will develop and will not leave the market in the near future.

To answer these questions, I decided to create my own rating of coins. In addition to a simple list of what I think is a promising cryptocurrency, I will try to tell you why you should pay attention to these digital assets.

Cryptocurrencies Lost Hundreds of Billions of Dollars in 2022

2018 was the complete opposite of 2022, as market prices for cryptocurrencies gradually declined throughout the year. As of December 31, 2022, the prices and market capitalization of the top 10 coins were significantly different from the current ones. For example, the top 5 coins at the time had significantly higher nominal values: Bitcoin (BTC) was trading at $13,170, Ripple (XRP) at $2.12, Ethereum (ETH) at $721, Bitcoin Cash (BCH) at for $2459 and cardano (ADA) for $0.69.

Since December 2022 and throughout 2022, all of the largest coins by market cap have lost more than ¾ of their net value. The market capitalization of the entire cryptocurrency ecosystem has reached an all-time high of more than half a trillion dollars, and today this market figure is just above $100 billion.

However, nothing new

For those who came to the market for the first time during the 2022 hype, such a protracted correction turned out to be an unpleasant surprise, but old-timers remember worse times. According to Romanov, the current bear market cannot be compared with the correction of 2014.

“Bulls” and “bears” are generally accepted names in stock exchange circles for market participants who play to increase or decrease the rates of currencies or securities.

“Firstly, then it was mainly geeks (people passionate about high technology - approx. Lenta.ru) who

). Secondly, then the most painful event in history happened - the bankruptcy of the Mt.Gox exchange, on which 90 percent of all bitcoins were traded. The attackers stole 700 thousand coins at one point, and nine out of ten traders were left with nothing,” he recalls.

Romanov draws attention to the fact that the behavior of the crowd both then and now is absolutely identical. People are recording losses and predicting that Bitcoin will collapse to $100, and then to zero. However, history shows that the market always goes against the majority opinion. “The price is reaching unexpected heights, and people are ready to invest their last money, take out loans and sell property. Bitcoin for 20 thousand dollars does not seem so expensive to them. Why then aren’t they eager to buy it at an 80 percent discount?” - asks the trader.

Bitcoin to dollar exchange rate chart on a weekly timeframe

Image: Andrey Sobolev

Timeframe is a unit of time for plotting price changes for an exchange asset. To review historical periods of several years, daily or weekly charts are usually used.

A fractal is a mathematical model that is self-similar, that is, each part of the fractal is similar to the system of fractals as a whole. On the graph it looks like a repetition of graphic figures.

Moving average is an indicator that depicts the average price of an instrument over a certain period of time. It is shown as a line on the graph.

The repetition of the 2013-2015 cycle can be seen on the graph of the Bitcoin exchange rate to the dollar on a logarithmic scale. “If you open the chart on a weekly timeframe, you can see that this fractality has already played itself out by 60 percent, and there is almost no doubt that the price will continue to follow history. And history tells us that the price minimum will be formed at the 200-period moving average (200MA), which the price has already touched, which should be followed by a rebound into the active trading zone at approximately $4,800 and Bitcoin’s further transition to the accumulation phase,” predicts Andrey Sobolev.

Regulatory Processes in South Korea

From the very beginning of 2022, discussions began around the world about the possibility of regulating this market, and these conversations began to intensify. In January and February, many discussions took place regarding the regulation of the cryptocurrency market in South Korea. The headlines were filled with bans and warnings from Korean officials, and this was very reminiscent of the Chinese policy to ban cryptocurrencies, which was launched by the People's Bank of China back in September 2022. At the end of January 2022, a South Korean court ruled that Bitcoin has economic value. In addition, the country has completely banned anonymous trading of digital assets.

If in 2022 South Korea was a “hotbed” of cryptocurrencies, then in the first quarter of 2022 the country began the process of regulating these assets.

Central banks against cryptocurrencies: will Bitcoin survive 2022?

The offensive by financial authorities in different countries against cryptocurrencies is gaining momentum: more and more regulators, including the Bank of Russia, are warning about the growing risks of this speculative instrument, pushing governments to take decisive measures to limit its use, including a complete ban.

The year 2022 in the cryptocurrency market began with another sharp drop in the Bitcoin rate. If last November Bitcoin set another historical record - more than $69 thousand, and the total capitalization of the cryptocurrency market for the first time exceeded $3 trillion (including $1.3 trillion for Bitcoin), then at the end of December the value of the number one cryptocurrency dropped to $50 thousand. and by January 10 it dropped below $40 thousand for the first time since the third decade of last September. The immediate reason for this behavior of Bitcoin in recent days was the events in Kazakhstan, where about 18% of the world's mining capacity is concentrated. Internet shutdowns during mass protests and military clashes immediately pulled Bitcoin down.

The transformation of Kazakhstan into one of the main global mining centers was a direct consequence of the policy towards cryptocurrencies that the authorities of neighboring China have pursued over the past couple of years. In the past decade, the mining of Bitcoin and its cousins ​​has been a thriving industry in China, based on access to cheap electricity, mainly from coal-fired power plants in peripheral regions such as Inner Mongolia.

However, then the desire of the Chinese leadership to increasingly control financial transactions in the country coincided with the global trend towards “greening” the energy sector, which is actively supported in the PRC. At first, Beijing demanded that provinces conserve electricity, implying that mining was an undesirable activity. And in the middle of last year, the State Power Corporation of China actually banned its customers from using electricity for mining in all regions of the country, and the People's Bank of China announced that all transactions with crypto assets are illegal. This immediately triggered a “great exodus” of miners. By November, according to the Financial Times, the world's largest mining companies had exported more than 2 million computers from China, mainly to the USA, Canada, Kazakhstan and Russia, where this activity was at least not prohibited and even received legal registration (in Russia, for example, back in July 2022, the federal law “On Digital Financial Assets” was adopted).

In Kazakhstan, a sharp increase in the load on the energy system was felt almost immediately after miners from China began moving there. Last fall, the number of cryptocurrency mining devices in the country was estimated at 250 thousand, and then-Kazakhstan Energy Minister Magzum Mirzagaliyev said that the increase in electricity consumption over the year was 7%, although this figure usually did not exceed 2%. In mid-October, when several large coal-fired power plants shut down in Kazakhstan, authorities announced that they planned to introduce restrictions on the supply of electricity to miners.

In Russia, which is attractive for cryptocurrency mining due to low prices for electricity in a number of regions, especially in the “aluminum” Irkutsk region and Krasnoyarsk Territory, the attack on Bitcoin and others like it seems to be developing according to the Chinese scenario. In mid-December, Reuters, citing anonymous sources, reported that the Central Bank of the Russian Federation was preparing a proposal for a complete ban on investments in cryptocurrencies, citing the statement of the first deputy chairman of the Bank of Russia, Ksenia Yudaeva : “The situation in countries with a developed crypto market is increasingly reminiscent of the so-called shadow financial system.” At the same time, the Russian Central Bank has repeatedly expressed support for the digital ruble, although this project is still only at the initial stage - unlike the digital yuan, which is constantly expanding its circulation in China.

The same sentiments now prevail in many other countries. The respectable British Financial Times late last year published an article warning that Bitcoin is a negative-sum game for society, which could be even worse than classic financial pyramids. The total capitalization of crypto assets has reached a significant level and this can create serious risks for the financial system that cannot be underestimated, Fabio Panetta from the Executive Bureau of the European Central Bank (ECB) emphasized in his December speech.

Earlier this year, three more senior ECB officials— Ulrich Bindseil , Patrick Papsdorff , and Jürgen Schaaf —published a lengthy article that leaves no doubt that EU financial authorities view Bitcoin as a threat requiring tough response measures. Bitcoin, the authors of the article argue, does not live up to the promises of its creator Satoshi Nakamoto (the authenticity of his identity has not yet been established) - to create a financial system that is alternative to currencies that are issued by states and is not subject to government control. Bitcoin “is unsuitable and ineffective as a means of payment, but is widely used for illegal activities,” ECB officials say. “It is not suitable as an investment asset, it does not empower the sovereign individual and does not free him from the state. Until recently, it seemed that the authorities did not take enough into account the negative consequences of Bitcoin for society, but over time the situation is changing.”

The arguments of ECB officials are worth considering in more detail, since they undermine a number of established ideas about cryptocurrencies, in particular about the high efficiency and security of the underlying blockchain technology. Its very principle - solving computational problems, rewarded with digital coins - works very slowly, the authors note, citing last year’s study by Avoca Global Advisors with the eloquent title “Bitcoin: a Trojan horse.” The distributed blockchain system processes only 7-10 transactions per second, while the centralized Visa payment system is capable of processing approximately 24 thousand transactions during the same time.

This technological feature of the blockchain entails interest in cryptocurrency speculation on the part of “predatory” traders who use high-frequency trading algorithms, which contributes to the volatility of cryptocurrency quotes. Back in 2022, the authors of a study published in the Journal of Monetary Economics argued that Bitcoin's first global boom - rising from $100 to $1,000 in just two months - was caused by manipulation of trading software. And in addition, the Avoca report emphasizes, the Bitcoin network is vulnerable due to its dependence on a single security technology - the SHA secure hashing algorithm, which is more than twenty years old. The US Department of Defense and companies such as Microsoft considered the standard too weak for cyber defense back in the early 2010s and stopped using it.

The energy crisis that many countries faced last year has given another important direction to the fight against cryptocurrencies, as their production requires more and more electricity. For example, the Bitcoin system is technically designed for 21 million units, of which about 19 million have already been mined and are in circulation, and the pursuit of each new coin comes at a high price.

According to the latest estimates from the Cambridge Center for Alternative Finance, computers connected to the Bitcoin network consume about 140 terawatt-hours of electricity per year - about a quarter of Germany's annual electricity consumption. And according to the Digiconomist portal, the entire Bitcoin network consumes almost 202 terawatt-hours per year, which is almost comparable to the amount of energy consumed by all data centers in the world. At the same time, the “carbon footprint” from Bitcoin mining is comparable to the volume of greenhouse gas emissions in the London agglomeration. In response to this criticism, calls have been made more than once to use green energy for mining, and such examples indeed exist. For example, Iceland has long been attractive to cryptocurrency mining due to its abundance of cheap geothermal energy, but late last year the country's national energy company decided not to provide power to new miners. And in Sweden, which is serious about implementing the goals of the Paris climate agreement, late last year there were calls from the local financial regulator and the environmental agency to ban energy-intensive mining of crypto assets throughout the European Union.

At the same time, “classical” financiers seem to have no doubts about the toxic nature of cryptocurrencies. The first massive surge of interest in cryptocurrencies, which occurred in 2022, when the Bitcoin rate reached $20 thousand and then fell sharply, demonstrated that in their functions they differ significantly from ordinary fiat money, which is primarily a payment instrument in the economy. In practice, Bitcoin and its relatives, also conceived as a means of payment, turned out to be primarily the subject of financial speculation, and over the next few years the situation essentially did not change, with the exception of narrow niches such as gray cross-border transactions and outright criminal activities, cryptocurrency never became a payment instrument. In addition to the volatility of the exchange rate and low speed, the problem turned out to be high commissions - $ 2.5-4 per transaction, ECB representatives indicate. Consequently, they conclude, the business model of Bitcoin as a global means of payment turned out to be unviable.

As for the investment potential of cryptocurrencies, Bitcoin, European bankers emphasize, has no intrinsic value and does not generate cash flow or dividends, and therefore its market valuation is based solely on speculation. “Cryptocurrency,” writes popular British tech blogger and software engineer Stephen Diehl , “has become a pure speculative mania that has formed a fanatical quasi-religious movement fueled by gambling addiction and pseudo-intellectual economic ideology.” Authors from the ECB in this regard recall the theory of the greater fool: the value of a speculative asset increases if an even greater fool than the previous ones is discovered, who assumes that he can sell it for an even higher price. But since the number of bitcoins is limited, sooner or later the fools will run out.

The assumption that playing in this market will not end well for the “retail” investor is strengthened by the fact that the concentration of Bitcoin owners is extremely high: its hundred largest holders own more significant amounts of the asset than the 38 million smallest participants in the system. This refutes another common idea about cryptocurrencies as a democratic tool. But the list of cases where they were used for criminal purposes is constantly growing. According to the Cybertrace resource, extortion has become a key type of crime involving cryptoassets over the past few years. In the first half of 2021 alone, crypto ransomware caused $590 million in damages in the United States, including precedent-setting cases such as the May hacker attack on the Colonial pipeline, which temporarily left several American states without money. fuel.

All this ultimately adds up to the overall picture: the attack on cryptocurrencies in 2022 will most likely become one of the most important areas of activity for financial regulators. The range of regulatory approaches already outlined is wide, ECB representatives note, from turning the business with crypto assets into an activity falling under criminal charges, to more lenient approaches such as licensing mining and trading in cryptocurrencies and supervising intermediaries in this market.

At the same time, initiatives to ban or limit transactions with cryptocurrencies can come not only from central banks. For example, in India, the possibility of banning work with cryptocurrencies for individuals is being discussed at the government level, and in Indonesia, the Islamic clergy got down to business: in November last year, the National Council of Ulema of this country banned Muslims, who make up almost 90% of the population, from using bitcoins and other crypto-assets. which were declared "haram". At the same time, we should not forget that it is in Muslim countries with problematic financial systems, such as Turkey and Iran, that cryptocurrencies have long become an alternative way for many to save funds in a situation where national currencies are experiencing chronic instability. Finally, much will depend on how actively central banks, including the American Federal Reserve, will raise rates to fight inflation - if the yield on traditional bank deposits increases significantly as a result, there will definitely be fewer people willing to play cryptocurrency roulette.

Hacked exchanges

On January 26, 2022, the Japanese cryptocurrency exchange Coincheck was hacked. NEM coins worth $534 million were stolen. Then the MtGox effect was not repeated, and the losses of this platform did not affect the markets so much.

Another similar incident occurred in April 2022, when the wallet of the Indian cryptocurrency exchange Coinsecure was hacked, and bitcoins worth $2.7 million were stolen. Then ] accused [/anchor] senior researcher Amitabh Saxena of this, but in September Indian law enforcement agencies brought charges against several suspects, who were allegedly helped by an insider.

Coincheck and Coinsecure were subject to the largest exchange hacks of 2022.

Ivar Gaidelis, author of the ProMining YouTube channel

Is 2018 too late to start getting into crypto?

No, it's not too late. This year will be the most profitable for investors in the entire history of Blockchain.

Three tips for beginners.

1) Study Blockchain technology.

2) Understand that the main thing is technology, and only then come coins, which are shares of these technologies. The investor's profit does not lie on the surface; it lies in the technology.

3) Always remain calm and cool.

Your ideal proportion of coins for hodl.

There are no ideal proportions. A person should invest in a coin whose technology and team he believes in.

What needs to happen to make you quit cryptocurrency and mining forever?

The Apocalypse must happen.

How high will Bitcoin fly?

In the next year, I think, at least $50,000. Next, time and the development of Blockchain will tell.

Many ICOs have failed miserably

In the first quarter of 2022, large ICOs were launched, in which the Securities Commission (SEC) and the Commodity Futures Trading Commission (CFTC) saw many violations of the law. For the first time, the commissioner of the Texas Department of Banking issued an order to stop the ICO of the “decentralized cryptocurrency bank” Arise Bank. In February, the cryptocurrency community learned that 46% of ICOs in 2022 had already failed. Throughout 2022, regulators and law enforcement around the world have sought to target ICOs for compliance with existing laws and transparency, while many of these projects were outright fraudulent. The SEC even ordered huge fines to be paid to DJ Khaled and boxer Floyd Mayweather, who hid rewards from some of the ICO campaigns they promoted.

“Mining Minute”, MiningMin YouTube channel and MiningMin blog

Is 2018 too late to start getting into crypto?

It’s never too late to get involved in crypto, it’s always time. 2018... It will always be relevant, it’s the same as asking whether there is any point in growing potatoes.

Three tips for beginners.

1) Use your funds.

2) Do not step on a rake or stumble on stones - read, watch, study the materials, because now there are plenty of them.

3) When analyzing your income, prepare for unexpected risks in advance. When investing any amount in any business, mentally say goodbye to it.

Your ideal proportion of coins for hodl.

30/70. Withdraw 20-30 percent and save the rest. If there is no need to repay loans, credits, leave everything for a long period, and trade on shorts daily.

What needs to happen to make you quit cryptocurrency and mining forever?

Probably when I get an amount with ten zeros in dollars in my account. I just don’t see any point in doing this anymore. But this will not happen tomorrow, so my business will be eternal, and my great-grandchildren will continue my crypto-factories, crypto-factories, investments and so on.

How high will Bitcoin fly?

In 2022 - looking at the event map - to 100 thousand. If you take a period of 5 years - about 500 thousand, if everything does not go to Bitcoin Cash. For now, a lot depends on regulations, laws and other things, and on the countries in which you arrive. I think that in 140 years, based on the results of digging up the entire Bitka, it will be possible to take about 100 million dollars per coin. So bury one cue ball for your grandchildren. 140 years is not that long.

Petro from Maduro

In 2022, Venezuela launched the world's first state-owned cryptocurrency called Petro. Throughout the year, Venezuelan President Nicolas Maduro has touted Petro as an “oil” token. The country also passed a new law that establishes Petro as a vehicle for commercial transactions within the country. In addition, Maduro raised the price of Petro from 3,600 to 9,000 bolivars. Maduro also claims that his cryptocurrency is backed by “multiple assets.”

Venezuelan President Nicolas Maduro launched the first state-owned cryptocurrency called Petro.

Rise from the ashes

Despite a number of problems, the crypto industry has good prospects for further growth. However, the situation is complicated by the general decline of the world economy and the fact that all markets are now in a fever. Some believe that during the crisis, cryptocurrencies will become a conditional safe haven for investors, while others are confident that, on the contrary, they will strive to avoid risks and give preference to traditional investment instruments. It is unknown what will happen in reality, but analysts from the rating agency Weiss Ratings say that now is a good time to purchase cryptocurrency. And there are several objective reasons for this.

The subsiding hype stabilized the market and reduced volatility; this scared away amateurs, but attracted the attention of bankers and large funds, which can significantly affect the value of digital assets. Now the only people left on the market are those who will hold the cryptocurrency despite any drops, which means that the group of large players interested in the collapse of the rate does not make much sense to continue to drive the price down. At the same time, digital currencies are becoming commonplace everywhere, and are less and less perceived solely as a means to buy weapons, drugs and slaves, or as a threat to global economic stability.

Delayed Bitcoin ETFs

Despite the significant deterioration in the situation in the cryptocurrency market, in 2022 institutional investors began to show significant interest in it. Cryptocurrency supporters will forever remember how they had to wait for the SEC to approve a Bitcoin ETF and it didn’t come. Back in July, CBOE filed an application for a Bitcoin ETF that would be tied to the Vaneck and Solidx Bitcoin Trust Fund. That same month, the SEC delayed consideration of another five Bitcoin ETF applications filed by NYSE Arca.

In 2022, US regulators rejected many Bitcoin ETF proposals.

The SEC's consideration of Vaneck/Solidx's Bitcoin ETF proposal has now been delayed until February 2022. In addition, Bitcoin supporters were waiting for daily Bitcoin futures contracts from the Bakkt platform of the Intercontinental Exchange (ICE), which were scheduled to launch in December. However, the launch of this product is still delayed due to regulators.

Alexey Pogorely, COO iTuber, Facebook page.

Is 2018 too late to start getting into crypto?

It's not too late, but it's time!

Three tips for beginners.

1) Follow the trend.

2) Don't trade with money you can't lose.

3) Follow the news.

Your ideal proportion of coins for hodl.

30% interest in crypto from the total portfolio. I recommend BitCoin, BitCoinCash, Ethereum, EOS and IOTA.

What needs to happen to make you quit cryptocurrency and mining forever?

If crypto is taxed.

How high will Bitcoin fly?

I can’t say for sure, at least $40,000.

Bitcoin Cash and two forks

2018 was an interesting year for the Bitcoin Cash (BCH) network, which experienced two forks. The first fork, which occurred in the spring, was quite successful, resulting in new features such as re-running the opcode and increasing the block size to 32 MB. After this fork, the BCH coin received many development opportunities, including applications such as Memo.cash, Blockpress and others.

On September 1, BCH miners confirmed 2,060,041 transactions in 24 hours, which also corresponds to 23.8 transactions per second.

However, the hard fork planned for November 15 became controversial and led to a split in the blockchain. The side of the fork called Bitcoin ABC received the ticker BCH due to the majority of support, and the ticker of the other network on world exchanges became BSV. Last week, the BCH coin showed significant growth, rising in price by 34%.

What influences the cost?

In matters of fluctuations in the exchange rate of fiat money, the demand indicator plays a significant role. This fully applies to digital coins. If there is a gradual increase or decrease in price, it means that investors have begun to actively purchase platform tokens. But the sharp form of this process already indicates the presence of a currency pump.

Both the first and second types of players have a sufficient amount of coins, which can influence the rate movements up or down. They respond fairly quickly to the actions of professional traders and ordinary buyers, if necessary creating the appearance of an increase in value. The result of such manipulations is an artificial excitement around the cue ball. As soon as the price reaches its maximum, pumpers sell the available currency, thereby reducing its rate to a minimum.

This phenomenon is easy to track, since it is most often preceded by an increase in the popularity of electronic currency. The history of Bitcoin is full of such anomalous jumps - bad news was often deliberately invented or disseminated in the media in order to bring down the rate and make money on it.

An experienced trader will immediately determine when a digital money pump occurs. But for a beginner in the world of cryptocurrency, this task may be overwhelming. Therefore, the best solution would be to enter the digital asset market when there is relative calm.

However, these are not the only factors influencing the growth of Bitcoin. When making forecasts, Cliff High and other experts take into account all aspects that can positively or negatively affect the movement of the exchange rate. Circumstances that may stimulate future growth in the price of electronic currency include:

• a significant influx of investment into the site;
• official adoption of cryptographic currency in a number of countries;
• implementation of truly innovative and technological solutions.

But the introduction of a ban on the use of electronic money in a state with a leading position in the geopolitical arena, or another scandal around Bitcoin can easily provoke a drop in its value. In addition, according to analysts, a sharp collapse in prices could be caused by a large-scale hacker attack on popular cryptocurrency exchanges.

Increasing difficulty or how miners' earnings change

In the Bitcoin system, the difficulty of mining a block is the main indicator. The resource is already configured and links in the chain are created every few minutes, which means the power increases. To limit the speed of mining digital currency, an artificial increase in difficulty is used. As a rule, its parameters change once every 14 days.

Only in recent years has the difficulty decreased slightly, as one of the largest pools, GHash, has disconnected from the general Bitcoin network. What will happen in the future is quite difficult to say. The higher the difficulty indicators, the correspondingly less electronic money is mined, but at the same time the price of coins increases. However, such a dependence does not always arise, because cryptographic assets are greatly influenced by demand.

Ripple

Until the end of 2022, few people knew about the Ripple coin. Not much attention was paid to it, given that the coin appeared quite a long time ago. It is not surprising, because before that time no more than one dollar was given for one coin. So when the rate began to grow rapidly in December, many experts were sure that it would be at the dollar mark that a collapse would occur. In fact, this did not happen, although the rate stood at 0.8 for a relatively long time, and given the general trends after such downtime, in many cases the value collapses.

But then Ripple began to grow, although many people dumped the currency as soon as it reached $0.9-1. Those who were relatively patient were able to earn good money, because the cost increased not even to one dollar, but to three in a matter of days. It was this phenomenon that allowed Ripple’s capitalization to go down in history as the highest, surpassing not only Ethereum, but also Bitcoin, because the developers immediately released all coins to the market, excluding mining.

Wall Street became interested in Ripple, which increased the number of investors in this coin. Clear interest at the official level has made Ripple’s prospects for 2022 brighter. However, it is too early to say that exchanges will immediately begin trading futures with Ripple. This probably won’t happen in 2022, but the ice has broken and people are interested in cryptocurrency. It even once surpassed Ether in terms of capitalization and held on, but today it occupies the second position after it.

By the way, they want to add the Ripple coin to the Coinbase platform. If this happens, it is guaranteed that the value of the coin will increase due to interest from US investors. Given this, it is not surprising that Ripple has received the title of one of the most promising cryptocurrencies for investment in 2022.

But it will be possible to consider more realistic forecasts only after tests have been carried out on the Asian market, where Ripple Asia has entered into an agreement with nine dozen Asian banks. If this experiment fails, we can say goodbye to Ripple.

In the meantime, experts suggest the following options for the development of cryptocurrency:

1. The first forecast concerns the beginning of the year (from January to March). Provided that the experiment with banks is successful, the coin rate can expectedly rise and be at a level of 5 to 10 dollars. The final figure depends on investors from Japan, South Korea and the United States.
2. The second forecast, which is currently coming true, is that at the beginning of the year the Ripple rate will fluctuate between two and three and a half dollars. While the exchange rate is gradually falling, albeit not as sharply as it could be, many people do not like the trend. Nevertheless, this state of affairs is expected, because the fate of the Ripple blockchain is being decided right now.
3. The third forecast is pessimistic, as it implies the failure of the Ripple blockchain. If this happens, the coin will depreciate almost immediately. It is even doubtful that the coins will be able to stay around one dollar.

But the forecasts in question depend on many factors. The most important one is events in the financial industry. So there is no point in talking about accurate forecasts without having all the information. But the most daring experts say that at the end of 2022 the rate will be from ten dollars per coin, or even 20-30 dollars.

It is not surprising that in the ranking of which cryptocurrency is the most promising in 2022, Ripple occupies a consistently high position. But its final prospect can only be known when the network verification phase is completed and the update works with banks in real time.

Medium term prospects

Ignoring electronic money when it is showing such tremendous growth is an unforgivable omission. Bitcoin has attracted the attention of not only professional analysts and traders, but also ordinary users who are looking for a stable source of income in these difficult times.

International market acceptance explains the gradual upward movement. The most significant changes are happening right now, because the price for 1 coin has soared to 8 thousand dollars. In addition, in the near future the platform may acquire official legal status, which will also immediately affect the cost of its tokens.

Most analysts believe that the Bitcoin cryptocurrency is not in danger of collapsing next year. As the previously mentioned Chris Haya states, the price of 1 BTC on trading platforms will surpass the cost of gold. Chris is also supported by the authoritative physicist at the Polish National University, Mariusz Tarnopolski. He created an application that simulates with a high degree of accuracy how Bitcoin will behave in 2022, and in accordance with it, it turns out that the price of the coin will double compared to the previous year.

When analyzing the fluctuations of the platform and the predictions of experts, you should also not ignore the words of experts from Goldman Sachs, the oldest and most influential company in the field of investments. Their forecasts are more than positive: they report that next year the value of the cryptographic currency will only increase. The rate can increase at least one and a half times. However, short-term price declines of 25% cannot be ruled out. There is no need to fear a complete collapse of cryptocurrency.

The head of the large financial company Standpoint Research, Ronnie Moas, also predicts a favorable future for Bitcoin. According to him, the currency is protected from possible inflation, and its capitalization indicators will grow rapidly.

The Future of Ethereum

Some investors look at Ethereum as a competitor to Bitcoin, although the two cryptocurrencies have different values. Interest in Ethereum is dictated, first of all, by the capabilities of the network itself. Its cost may increase due to the following factors:

• exchanges plan to introduce ETH futures;
• The Ethereum network is actively developing and improving, issues of security, scalability and ease of use are being addressed;
• Banks are interested in network tools;
• investors are investing in ETH, expecting growth similar to Bitcoin.

Invest or hold off?

The cryptocurrency environment is very fickle, so those who want to make money in this area have to put up with serious risks. Even ardent Bitcoin optimists recommend not hoping for quick profits, because not all investors are able to guess the time of a new round of growth. Analysts advise holding no more than 5-10% of assets in cryptocurrency.

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