Forbes: Top 10 things to watch in the crypto industry in 2022
Original source: Forbes
Original source: Forbes
Original compilation: Kxp, Rhythm BlockBeats
Original compilation: Kxp, Rhythm BlockBeats
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Bitcoin price reaches $100,000, the breadth and depth of the Crypto asset market will be further expanded
Rising inflation rates are making scarce assets like Bitcoin (BTC) increasingly attractive. Not only is Bitcoin the oldest, most decentralized, and best-known Crypto, it also has a limited supply compared to other Cryptos—only 21 million BTC in the world. As more and more institutions begin to accept Bitcoin, its demand is gradually increasing. This trend will make the price of BTC continue to rise this year, even reaching more than 100,000 US dollars.
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Ethereum will still dominate the smart contract platforms after the upgrade
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The Sustainability of Crypto Investments Potentially Increases
ETP issuers, Crypto trading platforms, mining companies and financial institutions are all willing to provide their customers with green products and services. Until now, many would-be Crypto investors were reluctant to invest in Bitcoin because of its relatively high carbon emissions from mining. And in general, companies interested in Bitcoin mining must also comply with ESG regulations.
However, there are models that can calculate the climate offsets required for Bitcoin-based products for crypto investment project parties. For example, a recent study by the Frankfurt Academy's Blockchain Center outlined how to offset the carbon emissions of trading or holding Bitcoin by purchasing emissions credits from the European Emissions Trading System (ETS). Before this, people could offset the carbon emissions generated by Bitcoin for $18. After having the emission quota, assuming that a person holds Bitcoin for one year, he must purchase an emission quota of $100. So we can predict that the price of carbon emissions will increase significantly in 2022.
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Web3 infrastructure will lay the foundation for the decentralized development of the Internet
Web3 provides a new way for us to use blockchain technology to build the Internet architecture in a decentralized and autonomous way. The fundamental purpose of this is to reduce people's dependence on the "big technology enterprise" network and IT service providers, such as cloud or Internet providers, because they often process the collected data in an opaque way, presenting a "single point of failure". ", and because of the oligopolistic market environment, they can influence product decisions and pricing policies.
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NFT and chain games will become a new source of income for people
Metaverse is a virtual platform where people can collaborate and trade. Without NFT and blockchain infrastructure, these digital economies will hardly become a reality. Axie Infinity is a major turning point for "GameFi" in 2021. The launch of the Ronin sidechain made it possible for 1 million active players to visit the Axie Infinity universe in August 21. Axie Infinity developed by Sky Mavis has become a source of income for many in Philippines especially.
Microsoft and Facebook have announced that they are creating their own digital worlds, known as the Metaverse. What we can predict is that these Internet giants will develop a system that is wholly centralized and partially closed, because this will make it difficult for people to transfer value to other digital ecosystems. However, doing so violates the original intention of Web3 to allow individuals to use blockchain technology to have clear property rights and freedom of action.
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The multi-chain world is about to rise
In 2021, that debate over which smart contract-enabled blockchain ecosystem will prevail has slowly come to an end. It is widely believed that we will live in a multi-chain world. In such a world, multiple blockchains can transfer information and value to each other. Therefore, the ratio of TVL on Ethereum to the TVL of all blockchains will have a steady downward trend. A year ago, it was 90 percent; today, it's down to 62 percent. Nevertheless, we can foresee that Bitcoin will remain the largest blockchain in 2022, and Ethereum will remain the second largest blockchain. Secondly, Rollup (zero-knowledge and optimistic Rollup) and Layer 2 protocols will also achieve certain developments, and they will form a competitive relationship with Layer 1 blockchains. These protocols will reduce transaction fees, speed up transactions, and optimize the security of the underlying base layer. In addition, efforts are being made to improve interoperability between different blockchain ecosystems with the help of cross-chain bridges and cross-chain protocols. Finally, through Polkadot and the Cosmos inter-blockchain communication protocol (IBC), people are building Layer-0, which is a network of blockchains that can communicate with each other.
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The introduction of regulations and bans will further clarify relevant laws
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Digital Euro Still Won't Be a Big Stablecoin
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Institutional investors and large enterprises will gradually accept digital assets
Over the past year, institutional investors and major corporations have begun to look at digital assets. There are a lot of hedge funds, asset managers and family offices, but also pension funds, or institutions like Sparkasse and Raiffeisen-Volksbank. Last year, the market inflation rate remained high, and the overall investment environment continued to be depressed. However, the application scope of Crypto assets has been further expanded, and the corresponding demand has also increased. In this context, major banks such as JPMorgan Chase and Goldman Sachs have begun to launch a series of Crypto investment products. Technology companies such as Microstrategy and Tesla have also bought billions of dollars in Bitcoin to counter the inflation caused by the currency's mass issuance.
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DAOs will open new avenues for social and economic coordination
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