Crypto in 2022: From Crypto Adoption Surpassing the Internet, to Sectors Worth Watching and Everything In Between
Markets may be having a volatile start to the year, but 2022 is set to continue the pace of crypto adoption established in 2021. Looking ahead, crypto is seeing some exciting developments in redefining the ownership and transfer of value. With these advances, specific sectors are catching the attention of investors, with certain cryptos taking center stage.
Comparing the Internet Boom to Crypto Adoption
Adoption of cryptocurrency in everyday life is not a scary or even unusual thing. Just look back at similar innovations in human history and you will see a pattern repeating itself. In fact, the adoption of cryptography can be compared to one of the most revolutionary innovations – the Internet.
Cryptocurrency users are growing at a current rate of over 100% per year; this is well ahead of the adoption rate the internet experienced in the 1990s and early 2000s. If that adoption rate slows to 80%, the cryptocurrency will still reach 1 billion users by 2024. That means one in eight people on this planet will interact with or use crypto in some way.
With that in mind, it is expected that this pattern will continue steadily through 2022.
Why the market has a volatile reputation
Humans, by nature, like to be caught up in the hype of a narrative. We see it in politics, personal opinions and society. Markets are no different. In fact, it happens more with a narrative, like crypto, that rocks daily.
To get a more accurate representation of volatility, crypto investors should instead take a longer-term view. Instead of looking at daily rocker stories, zooming out and looking at the big picture provides a much more insightful representation of the market.
Bears versus bulls: who will win?
Crypto adoption was everywhere in 2021. With institutional interest, the rise of the NFT market, and new retail investors entering the scene, we saw waves of new support sweep through the crypto space. -cash. As much as we would like, the numbers simply cannot go up forever and there will always be setbacks in a healthy market. But as cryptocurrency adoption grows, these cycles will expand beyond the current four-year cycle into a more macro-economic (10-year) cycle and, with that, the volatility of the market. crypto will become less of an issue.
Cryptocurrency beyond payment; blockchain expansion in 2022
Cryptocurrencies are more than just a means of payment, like PayPal or Visa, they present trustless, decentralized and immutable value transfer systems.
Let’s break this down and consider the implications:
Without trust – do not rely on a third party to ensure the functionality of the protocol;
Decentralized – not having a central point of failure, ie not storing data on a single computer liable to crash and bring down the system; and
Immutable – not modifiable, no one can modify the data.
Value doesn’t just mean money. Value can be anything from a house to art to owning rights to something. Cryptocurrencies (along with new concepts like NFTs) bring a different kind of value to the world. Blockchain systems allow this value to be transferred, stored and recorded on an auditable ledger.
Blockchain technology and the value of true ownership
Outside of money, blockchain technology can revolutionize systems and improve efficiency in all industries. From internet solutions to games, digital documents to art, blockchains provide the ability to create, record and store assets in a decentralized way where the peer-to-peer has the power and not the middlemen.
What does that mean:
Individuals have control of their crypto and full ownership of their blockchain-based assets. They don’t need to rely on banks, lawyers, or any other centralized entity to be part of that ownership.
Additionally, areas such as insurance, lending and borrowing, cloud storage, internet access, advertising, governance and healthcare are all using blockchain technology to advance their offering and make it accessible to the world. These systems will continually expand as the technology is used more widely. We will start to see more and more opportunities emerge from functional blockchain technology beyond financial capability.
The Big Cryptocurrencies to Watch in 2022
“When looking to the future of the market, it can be difficult to pinpoint the exact cryptocurrencies that will take off and experience phenomenal growth. We can speculate based on historical transactions and trends, but ultimately account, I think investors should focus more on sectors first rather than individual cryptocurrencies. You need to consider whether the problem these sectors are solving creates value,” says Chief Investment Officer Brett Hope Robertson. at cryptocurrency company Revix.
This way, it’s easier to see which areas are most valuable for solving a problem and helping a market become more efficient. It puts functional use ahead of instant investments and allows the market to grow around use-case driven projects. Based on this, the sectors of focus this year are in:
- Decentralized finance (DeFi) and platforms and projects in this space;
- Game/Metaverse Tokens;
- Web3.0; and
- The battle of smart contracts.
The battle of smart contracts is increasingly interesting and worth watching. Ethereum has grown over 75% in the past year and is working to improve its protocol. As the mechanism upgrades, the network will see increased transaction speeds and reduced fees. The highly anticipated improvements will most likely generate a new wave of heightened attention towards Ethereum. At the same time, other smart contract protocols like Solana, which saw a massive +2,311% year-on-year increase, highlight how valuable these blockchains can be both from a functional standpoint and an investment opportunity.
Trying to choose which cryptocurrency to invest in, whether it’s a smart contract or a payment protocol, can be difficult. Fortunately, it is possible to invest in a diverse selection of top performing cryptocurrencies without having to predict which might be the best.
Revix’s cryptocurrency bundles such as the Top 10 packsthe Set of smart contractsand the payment package offer a way to invest in major cryptocurrencies in the form of a weighted basket that is adjusted monthly based on the best performing cryptos. They are a way to diversify your portfolio and take advantage of passive investing without having to worry about active trading, volatility, and market watch.
As we can see, Revix Bundles have outperformed their industry peers while producing a less volatile investment vehicle.
- the Set of smart contracts outperformed the top Ethereum smart contract player by more than 55%.
- the Top 10 packs outperformed the largest cryptocurrency, Bitcoin, by more than 50%.
- the payment package outperformed one of the largest payment tokens, Litecoin, by more than 10%.
This proves the true power of diverse bundles.
What are these Bundles made of?
Revix offers its customers access to three ready-to-use products Crypto packages who hold the most reputable cryptocurrencies in each sector. These bundles automatically rebalance each month to ensure your bundle is up to date with the rapidly changing world of cryptocurrencies.
the Top 10 packs is like the JSE Top40 or the S&P 500 for crypto. It offers equal weighted exposure to the top 10 cryptocurrencies which account for over 75% of the crypto market. This bundle has significantly outperformed Bitcoin over the past 12 months.
the Set of smart contracts offers equal weighted exposure to the top five smart contract-focused cryptocurrencies such as Ethereum, Solana, and Polkadot. These cryptocurrencies allow developers to build apps on top of their blockchains, similar to how Apple builds apps on top of its iOS operating system.
the payment package offers equal weighted exposure to the top five payments-focused cryptocurrencies that seek to make payments cheaper, faster, and more global. These cryptos include the likes of Bitcoin, Ripple, Stellar, and Litecoin.
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