The world’s most popular cryptocurrency, bitcoin (BTC), is about to enter a new phase of its life cycle as 2022 gets underway. Why a new phase? Because the dynamic form of virtual money has gained a massive following among everyday investors, seasoned traders, governments, merchants, and institutions. The obvious follow-up is for the coin to gain even more inroads in economies all over the world, find higher levels of value, and at least start to enjoy more stable prices.
If you’re wondering what’s in store for BTC for the next 12 months, start by reviewing its widespread acceptance, use among forex traders, safe-haven status, and potential for setting a few more price records. Here’s a concise summary for bitcoin enthusiasts who want to maximize their return on the alt coin before 2023 arrives.
Widespread Acceptance
Wherever you look, BTC is breaking new ground in terms of acceptance. A few of the newest places where you can either spend, save, or trade it include convenience stores, grocery chains, auto repair shops, banks, credit unions, restaurants, medical offices, health spas, hair salons, casinos, and online businesses of all kinds. While daily bitcoin usage hovers around the $5 billion mark, about one-third of that is accounted for by retail purchases.
Every year, more and more consumers discover that their favorite online merchants have added the popular cryptocurrency asset to the payment options menu, which means 2022 will likely witness another surge in retail growth. With millions working from home and avoiding public places due to COVID restrictions, online use of BTC could reach record heights.
Forex Markets Will Grow
One of the critical advantages for forex traders is the ability to trade alt coins alongside other currencies. This development is relatively new to the field and is a win-win situation for both forex enthusiasts as well as bitcoin. It’s more proof of mainstream acceptance of BTC as a form of monetary value. If you want to learn more about how to trade Bitcoin against the US dollar, this guide is an excellent place to begin. Knowing how to incorporate BTC alongside other pairs that you’re already trading adds to the diversification of your overall forex activity. Plus, it gives you the chance to speculate on the ups and downs of the world’s most important virtual currency.
Global Instability Will Support BTC Prices
The international political situation has the potential to support bitcoin’s continued rise in value. That’s because instability, as is the current state of affairs, tends to send investors away from traditional securities markets and into assets classes that are not tied to particular nations. Gold, silver, cryptocurrency, and commodities are good examples of four assets that could benefit from political unrest this year.
Volatility Will Lessen
As acceptance of cryptocurrency becomes more commonplace, the price volatility of BTC could begin to die down. Compared to traditional investment vehicles like corporate stocks and bonds, however, it will almost certainly demonstrate wider price swings. But, relatively speaking, 2022 could be the year of BTC’s move into a more stable pricing phase.