Digital payments and financial technology expert Jason Simon remarked that the usage of digital assets would increase this 2022. Overall, he cited that this new year would be massive in terms of adoption and developments relating to these virtual assets.
We are interested in taking note of the insights of Mr. Jason Simon regarding the trends we can expect this 2022 in the virtual currency space. We also believe cryptocurrency traders and investors will benefit by knowing what lies ahead in this market through Mr. Simon’s forecast.
According to the report posted online by news and press release distributor WebWire, Simon pointed out that the ecosystem of non-fungible tokens or NFTs, exchange-traded funds or ETFs, decentralized finance or DeFi, and stablecoins is in store for next-level developments.
He cited that the cryptocurrency market is overall likely to cast aside the veil of mystery surrounding it. The cryptocurrency expert remarked that instead, enthusiasts would witness virtual currencies becoming universally adopted even by central banks.
Additionally, Simon assured that it is no secret to people that this year would be much bigger for the expanding cryptocurrency space that many are embracing. Besides cryptocurrencies, other digital assets that could appear this year are central bank-backed digital currencies.
These digital editions of fiat money like the US dollar have the ultimate objective of replacing cash. Moreover, central bank-backed digital currencies feature main benefits like reducing the costs of issuing paper money.
They also enable governments to alleviate the burdens derived from the social aid plans’ implementation, which is quite timely in restoring economic fluidity to a world recovering from the coronavirus or COVID-19 pandemic. According to Simon, digital assets like central bank-backed digital currencies are coming and would have to coexist with cryptocurrencies like Bitcoin.
He said that financial markets possess room for both private and central bank-issued money, which is a relatively new development because the last time private money was issued was nearly a century ago.
Finally, among the digital assets to look forward to in the world of cryptocurrency this year are NFTs. Its massification will surely be a trend in the next few months.
Many people believe NFTs would merely be a fad. However, these digital assets have generated an entirely new economy for the virtual currency space.
This 2022, there will be more NFT marketplaces like Opensea and Mintable coming, as well as gaming platforms like Axie Infinity and art galleries like CryptoPunks. These platforms presently have a strong community of service providers, creators, and merchants.
Simon disclosed that the different marketplaces traded over US$15 billion last year, and this whopping figure was reached due to the secondary sales in different sectors such as collectibles, sports, gaming, and PFP or profile pictures.
We agree with Mr. Simon regarding his prediction of the increased usage of digital assets this 2022. We believe digital transformation is among the significant factors accelerating this trend.
As we continue to deal with the coronavirus or COVID-19 pandemic, in which governments and businesses promote no-contact and cashless transactions, we believe the utilization of digital assets will increase, and this practice will become the new normal.