Bitcoin recorded good profits during 2021, so will it reach $100k in 2022 ?

2021 has been a big year for Bitcoin, with the cryptocurrency recording its biggest highs yet. For starters, the price of crypto soared to almost $65,000 in April 2021. While its price has come down since then, particularly in recent months owing to successive crypto market crashes, there still are high hopes for Bitcoin in 2022.

In this post, we'll take a closer look at the immediate future of one of the most popular cryptocurrencies in the world. But before we do, let's go deeper into what Bitcoin experienced in 2021, as that will inevitably play a part in what happens to the cryptocurrency in 2022.

Bitcoin in 2021

Bitcoin started 2021 with a bang, with its record high coming in the month of April, when each Bitcoin was valued at a whopping $65,000. However, since then, Bitcoin's fortunes have been mixed. Let's look at the positives first.

The cryptocurrency became a major talking point around the world when the Latin American country of El Salvador legalized it. The country's president, Nayib Bukele, had been a crypto advocate for a long time. Remittances, coming from El Salvadorians staying abroad, had always been a point of contention. Money exchange services used to charge a lot of money for sending money from foreign nations into El Salvador, and according to Bukele, this had to change. After all, remittances play a huge role in El Salvador's economy.

So, with the legalization of Bitcoin, El Salvador ended up with two official currencies - Bitcoin and the USD. While the launch of Bitcoin as legal tender didn't go according to plan, things started to become stable as time went on. While leading economists around the world have criticized the El Salvador government for going ahead with Bitcoin legalization, crypto advocates are hopeful that other countries around the world will adopt a similar approach.

However, 2021 wasn't all good news for Bitcoin. For instance, China launched a large-scale crackdown on crypto activities in the country. For a long time, the Asian nation had been the world's largest crypto hub. However, when the crackdown ensued, crypto miners and traders fled the country. They moved to greener pastures for their crypto activities in surrounding regions in Asia and to other parts of the world as well, where legal enforcement on crypto is still relaxed.

The crypto market also saw multiple crashes in 2021, which played key roles in bringing Bitcoin's price down. Investors lost millions of dollars, and it went to expose the volatile nature of the crypto market. At the time of writing this article, a Bitcoin is valued at 48,882 USD, which is a significant drop-off from its April 2021 value. However, experts predict that the cryptocurrency will see good days again in 2022.

Bitcoin in 2022: What to expect

As far as valuation is concerned, experts suggest that Bitcoin can break its April 2021 record in 2022. Some have even suggested that each Bitcoin will be valued at a whopping $100,000 in the coming year. Sure, the crypto market may be experiencing something of a downturn right now with a lot of unpredictability and uncertainty. However, according to experts, digital asset adoption by institutional investors is growing in a sustained manner. They believe that this will result in the crypto market seeing some stability in 2022 and result in the rise of various cryptocurrencies' values, including Bitcoin.

The integration of blockchain tech into existing financial systems is also likely to be a boost for Bitcoin's growth in 2022. In the USA, there is a lot of talk around regulating the cryptocurrency for the greater good. While regulation will remove some of the core cryptocurrency elements (decentralization for starters) from Bitcoin, it will also be seen as a significantly safer investment by investors.

Right now, regulation seems to be the biggest obstacle in front of Bitcoin. Recently, the government of India announced that it would be tabling a cryptocurrency bill during the winter session of its parliament. Initially, the government suggested a total ban on all private cryptocurrencies in the country, including Bitcoin. However, its recent stance has softened a bit, which suggests that even if it's not banned, it will be regulated.

Only time will tell what effect this will have on Bitcoin in 2022. As of now, crypto advocates are hopeful that the Indian government will find a middle ground on crypto regulation. After all, India is one of the fastest-growing crypto markets in the world, and the country's crypto sector is teeming with employment opportunities.

Another aspect to be taken into consideration is that as the days pass, Bitcoin's supply is decreasing while its demand is increasing. This is also set to have a telling effect on the price of Bitcoin, and there's every chance that the cryptocurrency goes up in value to reach $100,000 or even more.

However, Bitcoin is also set to face some stiff competition from the likes of Ethereum and the Free TON project, which are both blockchains with native tokens that are performing incredibly well at the moment. Many experts have even suggested that in the future, Ethereum will go beyond Bitcoin due to the greater adoption of its blockchain in various industries. The Ethereum blockchain is also at the forefront of the non-fungible token (NFT) movement, which has taken the crypto world by storm in recent times.

Conclusion

Due to the volatile and unpredictable nature of the crypto market, it's difficult to predict the trajectory of Bitcoin in 2022. However, if the experts are proven right, it's set to be another big year for the world's biggest cryptocurrency. To make the most of the predicted growth, it's best to start now with the cryptocurrencies trading as soon as you can.

Sources:

https://time.com/nextadvisor/investing/cryptocurrency/bitcoin-price-predictions/

https://www.forbes.com/sites/billybambrough/2021/12/09/us-could-embrace-crypto-in-2022-huge-bitcoin-and-ethereum-price-prediction-revealed/

https://medium.com/everstake/what-is-free-ton-and-how-ton-blockchain-benefits-a-wide-range-of-industries-from-serving-81f0ddfbfd61

https://www.businessinsider.in/cryptocurrency/news/cryptocurrencies-tumble-as-china-continues-its-crackdown-against-mining/articleshow/87738496.cms#:~:text=As%20part%20of%20its%20crackdown,both%20down%20by%20nearly%2010%25.