Bitcoin prices have always been the widely recognized and accepted standard in the cryptocurrency market. Bitcoin was observed to be consistently volatile throughout 2021. It experienced an all-time high in April when it was valued at $60,000 but dropped to as low as $30,000 in July. It went up again to nearly $70,000 in November and decreased to the current level which is below $50,000.
As the crypto market has not yet fully matured, this volatility in Bitcoin prices is likely to be continued in 2022. This is the reason why many financial portfolio advisors and asset managers guide people to be cautious about investing in cryptocurrencies. Most of them advise spending only 5% of their budgets on digital currencies. Investors need to be mentally prepared for the plunges, as much as they usually are for the soars.
A Global Shift Towards DeFi
DeFi is currently in its developing phase. There are thus numerous risks involved in the complete adoption of decentralized finance. It might cause you to face severe challenges, such as those regarding financial credibility, scalability, credit scoring, and more.
However, 2022 might bring about some crucial changes. Several global FinTech companies are entering the market and providing solutions to address these challenges. One example is DeFiato which is a Centralized DeFi (CeDeFi) platform that aims to remove technical barriers to make DeFi accessible to all users, including those with little or no experience.
Another platform you can use to grow your crypto holdings is called Cake DeFi. Cake DeFi claims to generate constant cash flow for its users, through a fully transparent mechanism and with minimal fuss. It is similar to PolkaBridge, where users can swap tokens and earn by adding liquidity, farming, lending, and a few other means.
Blockchain in the Metaverse
As Microsoft and Facebook continue to stake their claim in the digital world, metaverse seems to have become a hot topic. The term ‘metaverse’ was first coined by Neal Stephenson in his fiction novel called Snow Cash. Now blockchain technology, NFTs and cryptocurrency have become critical aspects in the further growth of metaverse.
Companies like SoluLab are working towards building a crew of high-performing blockchain developers from around the world, who are keen to launch their metaverse idea using blockchain technology.
If blockchain gets into the metaverse, which can be foreseen to happen this year, our access to the environment will come to the crux of this digital world. This will lead to like-minded individuals forming online communities that will strive to develop parallel economics, share experiences, and create more content together.