What is the future of cryptocurrencies?

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Want to learn about the future of cryptocurrencies before investing? Insofar as the market for virtual currencies is extremely fluctuating.

it is difficult to project oneself accurately by imagining the courses of the weeks and months to come.

However, it is possible to make predictions based on recent changes in Bitcoin, Ethereum, or Bitcoin Cash prices. What to expect for 2022 when it comes to cryptocurrency?

Cryptocurrencies: what future for the year 2022?

In 2022, which digital currencies are most likely to take off? From cryptocurrencies most promising we find several names among which two particularly attract attention:

Ethereum, the second most capitalized virtual currency on the market after Bitcoin;

Litecoin was created in 2011 and listed in the top 10 high-potential cryptocurrency capitalizations for years.

Which crypto will explode in 2022?

The future of Ethereum looks bright! This crypto has recently been thrust into the spotlight due to the explosion of NFTs, or non-fungible tokens. NFTs are unique coins whose value is closely linked to their rarity, unlike fungible tokens such as Bitcoin tokens for example.

As a result, each of the non-fungible tokens is given an authentication certificate, which prevents its reproduction. However, in the majority of cases, it is the Ethereum blockchain that has the role of storing this data.Purchases are then settled in Ethereum and the transactions are all recorded on the blockchain of this crypto. The development of NFTs is thus a boon for Bitcoin’s immediate opponent.

Litecoin is one of the most stable Altcoins on the market, but also one of the oldest since it was in 2011 that Charlie Lee started coding. However, Litecoin only officially saw the light of day in 2017! It was initially modeled on Bitcoin, to be faster and less expensive than the latter.

In summary, its operation is identical and even aims to overcome certain flaws of Bitcoin. Perhaps this will be enough for Litecoin to become the new flagship cryptocurrency of 2022in the future?

How does the price of cryptocurrencies vary?

The cryptocurrency sector is particularly volatile. This is largely explained by the fact that, unlike fiat money, virtual currencies are in no way dependent on central banks or even a government. The value of Bitcoins and Altcoins is primarily based on the supply and demand model.

This indicates that the greater the number of investors interested in betting on a cryptocurrency, the higher the value of the latter. Conversely, when supply exceeds demand, the currency loses its value.

Another factor greatly influencing the price of virtual currency is its ability to penetrate the real economy. The ability to pay for purchases in Bitcoins on influencer platforms such as PayPal is a big step for cryptocurrency because it gives it credibility.

The IPO of the Coinbase platform is also a historic event for the crypto world since it is indicative of the recent craze for virtual currencies.

Moreover, this criterion is part of a more general determining element which is the image given to cryptocurrency in the media space: we notice that the more virtual currencies attract the attention of the media and influential personalities and the more their curve increases! This has, for example, been the case with currencies such as Bitcoin or Dogecoin, to which certain tweets from Elon Musk have been particularly beneficial.

What are the cryptos to follow for 2022?

There are additional currencies to keep an eye on besides Ethereum and Litecoin, which we addressed earlier. The Dogecoin, for example, has seen its value explode in recent months. between April 14 and 16, its price was multiplied by 5. Its course since it climbs with each tweet of the multi-billionaire concerning the Dogecoin!

Diem (formerly named Libra ), could also be promising crypto in 2022. Its launch initially planned for the end of 2020, should take place during the year. But contrary to the initial project of the social network. This currency can ultimately only be used for transactions between individuals.

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