Cryptocurrency naysayers have maintained for a long time that the entire ecosystem is nothing but a bubble. That argument has weakened in strength over the years, as Bitcoin went on to become a global standard for hedging against inflation. As a result of Bitcoin’s success, many authorized fund managers and venture capitalists now prefer Bitcoin to other investment instruments. However, the sudden fall in Bitcoin prices brings up the bubble question again. Anti-crypto lobbies still believe that cryptocurrency is leading to the creation of a bubble economy. If the crypto ecosystem turns out to be a bubble waiting to burst, it will have a worldwide impact of unprecedented scales. Entire countries today run on cryptocurrencies, El Salvador being the prime example. Experts now predict that 2022 will reveal the reality of crypto and settle the debate.
One of the probable reasons behind the growth of cryptocurrencies could be attributed to the exorbitant amount of money that the global rich possesses and staggering wealth inequality. Since Bitcoin has moved past the $1 trillion market cap mark, it is now no longer an ecosystem reserved for the super-rich of the world. In this context, the next rallies and plummets in prices of Bitcoin will indicate whether the system is built to last or is a gigantic failure. As regulations around crypto settle down, we will be able to see how it functions as a stand-alone system of wealth. The global crypto community is looking forward to 2022 in hopes of getting answers.
