Both 2020 and 2021 have been incredible years for Bitcoin owners. So now the question comes up, what will be the fate of Bitcoin in 2022?
One can’t know the future but many crypto investors and financial experts alike are making their Bitcoin predictions for the coming year.
If you’re interested in investing in cryptocurrency, you want to think about the Bitcoin projections for next year.
Should you consider buying Bitcoin or selling Bitcoin? Is it best to use Bitcoin as an asset or as a hedge against inflation?
Here are our Bitcoin predictions for 2022.
1. Increased Acceptance Among Retailers
Our prediction for 2022 is that there will be more physical retailers that’ll accept Bitcoin as a form of payment.
As such, one can expect retailers looking to install Bitcoin ATMs such as the Byte Federal Bitcoin ATM on their premises.
If you run a physical store, you might want to consider installing a Bitcoin ATM in your store. You might also consider investing in Bitcoin ATMs by owning as many as you can.
2. Bitcoin as Money
Most of us look at Bitcoin as a digital asset that we can sell for a large sum of cash as the price increases.
However, in 2022, many investors will look at Bitcoin as a form of money. These investors won’t buy Bitcoin to sell it at a later stage. They’ll buy Bitcoin to spend it at a later stage.
The global lockdowns of 2020 and 2021 led to many central banks increasing their money supply. This led to high levels of inflation that decreased the purchasing power of those currencies.
The average person is now worried about such levels of inflation in their local fiat currency. As such, we’ll likely see many people buying Bitcoin to use as money in case their fiat currency loses much of its purchasing power.
Precious metals such as gold and silver have been used as a hedge against inflation. They’ve also been used as a form of currency. Bitcoin might take the role that precious metals have taken in times of hyperinflation.
3. Support and Resistance
In 2022, we’ll see how different countries react toward Bitcoin. In 2021, El Salvador became the first country to make Bitcoin a legal tender.
One can expect other countries to follow suit. One can also expect more countries to adopt lax regulation and low taxes for Bitcoin owners and traders.
However, we can also expect a great resistance toward Bitcoin in 2022. In countries with cultural envy toward wealth, we might see strict regulation and high taxation for Bitcoin owners. One can also expect to see a few more countries ban the use of Bitcoin.
As such, anyone interested in using Bitcoin must keep an eye on the perception of Bitcoin and cryptocurrency in their country.
Those Are Our Bitcoin Predictions
Now that you’ve read our Bitcoin predictions for 2022, you’ll have a better idea of what to expect in the coming months.
More physical retailers will accept Bitcoin as a form of payment. Bitcoin ATMs will continue to rise in popularity along with Bitcoin itself!
We can also expect more buyers to focus on using Bitcoin as a form of currency rather than an asset for investment. We’ll see more acceptance toward Bitcoin in some countries. There’ll also be other countries that will crack down on Bitcoin ownership.
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