Opinion | How bitcoin proved its staying power in 2021, and what to expect from the cryptocurrency industry in 2022
- The world’s largest cryptocurrency reached record prices, expanded its usage and made links with traditional banking institutions this year
- As bitcoin enters the mainstream, education and fair regulation will be key in 2022 to ensure ordinary investors can benefit
Ever since its launch more than a decade ago, bitcoin has slowly but surely permeated the digital lives and wallets of people across the world. Operating beyond the realms of traditional financial infrastructures, the cryptocurrency asset has been viewed by many as an outsider – an unknown and unpredictable stranger.
However, in 2021, bitcoin put on a suit and tie and stepped into the light, challenging such perceptions. It made inroads with banking institutions and traditional investors and proved its staying power by reaching new price records. In doing so, it provided indicators of where the crypto industry is heading in 2022.
Bitcoin has continued to gain popularity as the world’s largest cryptocurrency, boasting a market cap that is now nearing the US$1 trillion mark, representing almost half of the entire crypto market.
Bitcoin’s ability to weather a storm bodes well for investors in 2022, giving them confidence in its longevity and curbing the inclination to sell at the next sign of trouble. Its continued growth, despite the odds, has resulted in some investors championing bitcoin as a safe-haven asset, or “digital gold”.