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How Does The Future Look For Cryptocurrencies?

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How Does The Future Look For Cryptocurrencies?

Lucy Smith January 27, 2022

With increased institutional buy-in from large corporations and many new all-time high values for Bitcoin. Ethereum, the second-largest cryptocurrency, has hit a new high. Meanwhile, interest in crypto has soared, due to everyone from long-time investors like Elon Musk to that high school friend on Facebook. But the sector is young and developing. That’s why every new Bitcoin high is quickly followed by a significant decline. Long-term trends are difficult to anticipate, but in the next months, experts will focus on issues like regulation and institutional crypto payment use to better understand the sector. So, here are a few things to keep a lookout for the future outlook of cryptocurrency, here at live cryptocurrency news.

Regulating Bitcoin

Expect more talk about cryptocurrency regulation. Washington legislators Organizations across the world are figuring out ways to make cryptocurrencies safer for investors and less enticing to fraudsters. In the Americas, Jeffrey Wang, CEO of Amber Group, a Canadian crypto finance startup, thinks regulation is a major concern. China declared all cryptocurrency transactions illegal in September, thereby halting all crypto-related operations within Chinese borders. 

Americans have more questions. The Federal Reserve’s Jerome Powell has stated that he has “no intention” of banning cryptocurrencies in the US, while SEC Chairman Gary Gensler has repeatedly stated his agency’s and the CFTC’s roles in overseeing the market. Gensler has stated that investors are “likely to lose” if no new regulations are implemented. Also, the IRS has a vested interest in investors knowing how to report virtual money on their taxes. The views of Gensler and Powell are in line with the Biden administration’s and other politicians’ calls for stronger cryptocurrency regulation.

The president’s $1.2 trillion bipartisan infrastructure plan signed in November includes crypto tax reporting rules that might help the IRS track American crypto activities. That’s why, even before the new law, experts advise investors to keep track of their crypto profits and losses. The new guidelines may also help investors record crypto transactions correctly.

Institutional Crypto Adoption Expanded

In 2021, mainstream organisations across industries expressed interest in, and even invested in, cryptocurrencies and blockchain. According to AMC, Bitcoin payments will be accepted before the end of this year. PayPal and Square, for example, are betting on crypto by allowing customers to buy on their platforms. 

Tesla has been hesitant to accept Bitcoin payments, despite having billions in crypto assets. Experts foresee increased buy-in. Experts believe that larger multinational firms will accelerate adoption in the second part of the year. Indeed, Amazon recently stoked speculations by advertising a position for a “digital currency and blockchain product lead.” Walmart is also hiring a blockchain specialist to supervise its plan.

While most individuals don’t now understand the value of cryptocurrencies, more merchants embracing them may transform the picture in the future. However, increasing institutional acceptance might lead to more daily consumer use-cases, which could affect crypto pricing. No guarantees, but if you buy cryptocurrencies as a long-term investment, the more “real world” uses it has, the higher its value.