Translation of Changpeng Zhao’s article for FortuneIndia Magazine
Cryptocurrencies have seen a fantastic rise last year. Bitcoin has reached a record price, altcoins are also bravely defending their place in the market. Ethereum, Dogecoin, and Shiba Inu sometimes generate more buzz than Bitcoin. Especially in the last half of the year, when Ether became the “chief conductor” for GameFi and fan NFT tokens.
Predictions for 20140
Traditional funds and crypto-oriented venture capital companies 2000 invested record amounts in buying digital assets. This money went to the development of startups and the entire industry in general. Now all this will pay off with new interesting projects.
Many startups are working to increase the use cases for cryptocurrencies, making them more affordable and easy to use. All this contributes to the popularization of cryptography all over the world. Everyone will benefit here: entire countries, large and small companies, individuals looking for alternative sources of income, content authors.
DeFi and GameFi products are just some of the innovations that will continue to evolve. When tech giants move to cryptocurrency, a new era will begin. We are looking forward to this with optimism. I think in 2021 the global adoption of cryptocurrency will grow from the current 5% to 10%.
Clear and uniform regulations
Cryptography is playing an increasingly wider role in retail, so clear regulation is needed. This will protect investors and projects from fraud and manipulation.
Cryptocurrency is a universal instrument. It can be a means of payment, an asset, a management token or a reward token, and many other functions. Cryptography and blockchain have destroyed the financial industry. Then she will change it even more.
It doesn’t matter how a particular government decides to classify cryptocurrencies. But it is imperative that governments encourage and support digital innovation.
Many countries have the potential to become leaders in the field of cryptography and blockchain. This will provide freedom not only in the banking and financial industries. With the help of the blockchain, it is possible to conduct transactions with real estate, establish logistics, agriculture, corporate processes faster and more efficiently.
Dizzying speed of innovation
We expect even more innovations in the new year. Infusion from retail investors will help in a wide variety of endeavors – games, social media, FinTech, marketing, VR, AR, etc.
If earlier companies were afraid to penetrate cryptography and blockchain so early, now they will see firsthand how many options there are in their use, and how many problems such technologies solve.
Integration of new solutions will only strengthen the confidence of the parties. We hope that in the 2022 blockchain innovation will close the gap between traditional businesses and advanced startups.
DeFi’s deafening rise
B 2021 the DeFi sector experienced a real boom. Probably in 2022 we will see its further growth. And also the growth of its “brothers” – SocialFi and GameFi. They will become the engine for decentralization.
The growing popularity of NFT collectibles, P2P games and the Metaverse will benefit everyone. After all, such projects are not limited only by financial benefits. They are of interest to different groups: someone invests in creating avatars, someone is interested in virtual real estate, futuristic games, fashionable virtual clothes, art, and so on.
DeFi still has a lot unsolved problems and tasks. They lack sophisticated financial instruments, liquidity, knowledge in risk and capital management, and they also have security problems. But as it evolves, developers will come up with more and more intelligent solutions to meet the needs of the community.
B 2021 year, the cryptoindustry has shown noticeable progress: high-quality projects and large partners have appeared. All this will become the foundation for the growth of interest in cryptocurrencies. Advances in regulation, innovation and projects create synergies, with each mechanism helping to propel the entire industry forward. Therefore, cryptography is confidently moving along the path of total implementation. We are excited to see an ever more powerful and sophisticated blockchain space grow.