There’s no denying that 2021 was a landmark year for cryptocurrencies. The two biggest names on the docket, Bitcoin and Ethereum, both recorded all-time highs in value, with the former peaking at more than $69,000 in November.
Unfortunately, 2022 hasn’t been so kind to digital currencies thus far. After scaling those lofty heights, both currencies fell sharply in the first few months of the year, while countless others folded altogether. That wiped out the savings of many a crypto investor in a mere matter of days, causing concern among the online community.
However, there are still reasons to be cheerful. Crypto has always been a market characterised by volatility and as well as those aforementioned troughs, 2022 has also brought us some exciting developments which could indicate that another spike is right around the corner. Here are some of the more newsworthy developments to date.
US investigates regulation
The US government has flirted with the idea of a regulated cryptocurrency system for several years now, but it took its most concrete steps towards that eventuality this year. In March, President Joe Biden directed agencies under his control to conduct an investigation into the “responsible development” of digital monies, including stablecoins.
That executive order was followed up by the publication of a framework outlining how the US should interact with other nations in this regard, signaling that the White House is moving closer to introducing regulation.
While some may be wary of that turn of events, it can only be a good thing for the industry, since greater regulation will encourage stability in a sector that has traditionally been extremely volatile.
Africa embraces crypto
In April, the Central African Republic (CAR) announced it would be accepting Bitcoin as legal tender, becoming only the second nation to do so behind El Salvador.
The move came as its other currency, the CFA franc, has struggled to maintain value. While CAR does suffer from poor internet penetration among its populace, it’s thought that adopting Bitcoin could make transactions that much easier, quicker, and safer via Smartphones.
Elsewhere in the continent, Cameroon, the Democratic Republic of Congo (DRC), and the Republic of Congo are taking the first steps towards following CAR’s example.
In particular, the idea of blockchain-based solutions interests them, with proof-of-stake blockchain The Open Network (TON) in their crosshairs. Watch this space for further news.
Speaking of blockchain, another positive project which could provide a great springboard for those new to the world of crypto is the launch of the Crypto.com card and app.
The card is a standard Visa that works at all outlets that accept that household name but rewards its users with a percentage of their spending in cash back.
The percentage of that cashback allowance fluctuates depending on how much they are willing to lock up in this new and exciting coin, Cronos.
First launched in 2018 on the Ethereum network, Cronos is now operating on its own bespoke Bitcoin (although it is still compatible with Ethereum) and represents a great way for those new to the industry to experiment and earn.
After a disappointing start to the year for crypto investors, things are now looking up as we head toward the end of 2022.