The results of 2021 showed an increase in the interest of private and institutional investors in cryptoassets. The FOMO effect is expected to be the main driver for investment in crypto assets in 2022.
2021 has become a historic year for the cryptocurrency community, the development of digital assets and the expansion of their impact on both the financial system and public consciousness. The prices of most cryptocurrencies have updated historical highs, and the total capitalization of the cryptocurrency market has temporarily exceeded $ 3 trillion.
Extensive media support, high market capitalization, the arrival of new institutional players and the emergence of profitable financial instruments based on cryptocurrencies have become the growth drivers of the cryptocurrency industry in 2021.
As of 2021, the global level of cryptocurrency ownership is about 3.9%, i.e. more than 300 million people use cryptocurrency assets around the world. In absolute terms, the leaders are: India (100 million), USA (27 million), Nigeria (13 million), Vietnam (5.9 million), Great Britain (3.3 million). At the same time, 58% of the “cryptocurrency population” is the generation under the age of 34 years.
In terms of percentage of the total number of the country’s inhabitants, Ukraine is in the lead, Russia is in second place, and Venezuela is in third.
More than 18,000 companies have started accepting payments in cryptocurrencies, and retail has attracted over 40% of new customers who pay with cryptocurrencies. The number of transactions on e-commerce sites increased by 12.5%. The average return on investment (ROI) was 327%.
The global luxury goods market is expected to reach $ 1.5 trillion by 2025, with the innovative millennial generation accounting for over 50% of the total. Considering that 36% of the owners of crypto assets have an annual income of about $ 100,000, then the decision of luxury brands to accept payments in cryptocurrencies is becoming more and more relevant.
Despite the fact that people still depend on public financial institutions, the use of cryptocurrency assets in calculations makes the space more autonomous, eliminating intermediaries who control or enrich themselves at the expense of end consumers.
Digital money transfers and cross-border transfers have reached nearly $ 95 billion. Over 15% of total remittance senders have switched from fiat to cryptocurrencies, as crypto transfers are 388 times faster and 127 times cheaper than traditional money transfer methods.
Flori Marquez, co-founder of Blockfi, told Yahoo Finance Live Friday her vision for the future of the cryptocurrency market in 2022. According to Marquez, in 2022, the cryptocurrency community should expect three important events.
First, there is a significant influx of consumers who will enter the market for the first time. In this case, the most significant factor of influence will be FOMO.
The buzz around this asset class is driven by the huge returns that some investors have made. Bitcoin, for example, was the most profitable asset from March 2011 to March 2021 with an annual return of 230%. The next most profitable asset class during this time period was the Nasdaq-100 ETF (QQQ), with a 20% annualized return.
Flori Márquez said: “if we look only at BlockFi numbers, in the last three years we have had 10,000 clients at the end [первого] year, 100,000 clients at the end of the previous year and by the end of this year we will have over 500,000 clients. ”
Secondly, she believes that against the backdrop of the Covid-19 pandemic, we will see a “retraining of talents” as the cryptocurrency and fintech industry has become more attractive to many people.
Finally, next year we can expect the adoption by regulators of a number of legislative acts that will bring the necessary regulatory clarity in the crypto space. 2021 was also a year of unprecedented pressure on cryptocurrency companies from financial regulators. Governments and fiscal authorities around the world are taking digital assets more seriously than ever before. Regulatory practice has also changed from the introduction of strict supervisory rules to the complete prohibition of any transactions with cryptoassets.
US Federal Reserve Chairman Jerome Powell recently said he has no intention of banning cryptocurrencies in the US, while SEC Chairman Gary Gensler has consistently commented on the special role of both his agency and the Commodity Trading Commission. futures exchange (CFTC) in the oversight of the industry.
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