Crypto in 2022: What Changes, What Stays the Same + Are We Ready for the New Era?
In this edition:
- The Future of Crypto Exchanges
- Bitcoin VS Altcoins – Who Will Win
- Oh Snap, Regulation
- The Global Crypto Community
Did you miss us, dear Anchorians? It’s been some time, we know. Nonetheless, we are here for the 94th time, talking about cryptocurrencies, blockchain, and all the things we hold dear!
We do have a confession to make – this 94th edition of Anchor’s Crypto Roundup will be the last one, at least for now. Maybe we will see each other again, you never know what the future brings, but you have been an amazing crowd and we thank you for the ride. Ok, now it just sounds like we’re breaking up. Moving onto the important stuff now!
This edition will be slightly different, as we didn’t want to leave you hanging in the past – this will be the first Roundup that focuses on the future, not the past occurrences. Today, we are talking about predictions and stats – what is next for the industry of crypto?
The Future of Crypto Exchanges
The number of cryptocurrency holders grows by the day, which is good news for every cryptocurrency exchange out there. The main question regarding exchanges is whether people will eventually turn to DEXs or the most popular exchanges will go even more mainstream.
Right now, the most popular centralized exchanges are Binance, Coinbase, FTX, Kraken, KuCoin, and Huobi. On the decentralized side, the most successful exchanges are Uniswap (V3), dYdX, PancakeSwap, ApolloX DEX, and TraderJoe. DEXs naturally have a smaller daily volume, but we all know there are other indicators of popularity.
E.g. Binance and Coinbase are easily accessible and simple to use, just a download away from everyone in the world. People who are newcomers to crypto find the most common names the most trustworthy, plus all they need to do is connect their credit cards and voila, you’re a crypto investor now.
DEXs are different with their revolutionary no-third-party approach. Crypto veterans prefer DEXs as places that nurture the true nature of cryptocurrencies and blockchain – where everybody is equal, there are no intermediaries, and anonymity is guaranteed.
So, who will win? Our answer is – everybody. CEXs, DEXs, users – there is a happy place under the sun for everyone included. As the demand for crypto grows, the market itself is growing – new-to-crypto people will come to centralized exchanges while more seasoned crypto enthusiasts will inevitably migrate to DEXs. CEXs will have more users, DEXs will have more users, and users, well, they will get to choose whatever they want.
From almost impossible to highly accessible in just over a decade. Crypto rules! Whether you prefer the coziness of a CEX or you are passionate about DEXs, your list of options is vast, as it should be.
Bitcoin VS Altcoins – Who Will Win
Bitcoin is our world’s most precious pearl – the first, the most popular, the most valuable. Some people even equalize BTC with the word cryptocurrency, even now when there are so many altcoins emerging every day.
The eternal question is – will BTC always be the alfa and omega of cryptocurrencies? Or is there, just maybe, a chance for some altcoin to shift the tides?
The stats are impressive – there are over 106 million BTC owners, 400,000 people use it or trade it daily, and there are over 200 million activated BTC wallets out there. 106 million people is a lot! Just for comparison, Russia as the world’s largest country (though not the most populated one) has 144 million inhabitants.
Not even ETH comes close, so with this upper hand, there is a very slim, almost non-existent, chance that any altcoin will endanger BTC’s throne.
However, not every cryptocurrency has the same point or purpose. Stablecoins, for example, are far more suitable for the role of an actual currency; CBDCs as well, of course. ETH has undeniable use-value for everyone that utilizes the Ethereum network. A lot of tokens are a crucial part of entire financial ecosystems, remember when XRP first came to life. And last but not least, sometimes you can earn more by hodling memecoins that go viral than by hodling BTC.
Our point is – diversity is good! Not only from the ideological point of view but from the economic as well. A good market is a diverse market with plenty of opportunities and self-regulation methods. Plus, having a monopoly situation is never good for the ecosystem as a whole.
BTC will always be the most special and probably the sexiest option. That doesn’t mean there is no place for altcoins! Especially now when everything can be tokenized, when we have cryptocurrencies, digital currencies, CBDCs, NFTs, various utility tokens… They all exist for a good reason. We vote for changing the traditional financial landscape, but surely BTC is not the only way to do that.
Oh Snap, Regulation
Having a multicultural global community over the years thought us there are so many different realities when it comes to the regulation of cryptocurrencies.
Some of them are very crypto-friendly, such as El Salvador – the first country to adopt BTC as legal tender. Of course, this is more than pure love for crypto, El Salvador aims to become the haven for crypto projects and big holders (whales). There are other interested parties in Latin America, looking to follow the Salvadorian path, such as Paraguay.
Mostly, sovereign countries are wary and skeptical, but still, leaving a bit of the grey area instead of purely banning cryptocurrencies. You can hodl, but can’t trade. You can trade if you pay taxes. You can’t own, but you can mine. Et cetera, et cetera, et cetera. It’s wild out there!
Australia is doing great, on the other hand. The country legalized crypto in 2017 and made serious efforts to become a fintech pioneer in general. It’s not a ‘’free for all’’ situation, there are frameworks and laws, you can’t do whatever you want, but it’s a surrounding keen on cryptocurrencies, not on a crypto witchhunt.
We know most people can’t simply move to another country or another continent, especially now with the pandemic crisis around the globe. Sometimes, you can’t fully change your reality. Still, there is a thing or two people can do. We won’t go into details, but tech-savvy people can be less concerned about the regulation, let’s put it that way.
Inevitably, more countries will see the benefits of implementing crypto in the everyday lives of their citizens, mainly because ‘’the old way’’ doesn’t cut it anymore. Debts, inflation rates, the digital switch – governments now have to innovate to solve serious problems. Does this mean we’ll all live happily ever after? Hardly. Some places will always be harder to live at but the global outlook is surely getting more optimistic.
The Global Crypto Community
And finally – what will happen to the global crypto community? Since the beginning, crypto spaces and communities on Internet were open to like-minded people. They were places of creation, innovation, and contribution.
Unlike other ‘’fans’’, crypto enthusiasts are action-oriented and mostly share the same values of the bottom-up culture and decentralization. Surely, not every person who likes crypto is Mr. Robot, but the power of many is mighty.
Reddit, Telegram, Discord, Twitter, and many more communication channels are filled with smaller crypto communities, but these ‘’small’’ circles are incredibly well interconnected. Everybody knows everything, almost as it happens.
In the future, we’ll probably see more initiatives and emerging change-starters. Some unique, priceless ideas will pop up and shape the world as we know it. Crypto people seek challenges to be overcome and aren’t selfish when it comes to sharing knowledge. Unlike in other surroundings, in the world of crypto, you don’t get defeated by your peers – you all gain together. Other users aren’t your competitors, they are your soul tribe.
So, the global crypto community will grow from tens to hundreds of millions, then billions. That’s a huge body of people! Changes never happen accidentally, but they inevitably happen. We can’t wait to see how crypto enthusiasts will shape the future of our world.
Okay, guys, this really is the end. Not just of the 94th edition of our Roundup, but the end of all Roundups. It’s been such a pleasure interacting with you every week, then every month, but all good things must come to an end. All things in general, actually.
We hope that we managed to give you some insight over the years and occasionally made you laugh. We also hope that you and your loved ones are safe and sound. In 2022, we wish that you catch a memecoin fever early. And then buy us a couple of drinks ‘cause we called it!
Stay safe, take care, and enjoy the little things. For the last time, we wish you fair winds and the following seas, dearest Anchorians. It’s been a pleasure. ♥
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.