Cryptocurrencies had a very bad run in the first half of 2022.

Bitcoin and Ethereum are down 50% from their all-time highs at the end of 2021. Even though there have been surges here and there, the crypto market is largely stalled. Although no one knows for certain, experts believe that cryptocurrency prices will fall even further before recovering.

Cryptocurrency regulation

Lawmakers across the world are trying to figure out the rules and regulations to make cryptocurrency safe for investors and less appealing to cybercriminals.

What could new regulations mean for investors?

Cryptocurrency regulations are a contentious issue, but many experts believe they are beneficial to investors and the crypto industry.

More regulations can help to stabilise the notoriously volatile crypto market by protecting long-term investors, preventing fraudulent activities in the crypto ecosystem, and guiding companies to innovate in the crypto economy until they find the right balance.

Broader institutional crypto-currency adoption

In 2021, large corporations from a variety of industries expressed interest in, and sometimes invested in, cryptocurrency and blockchain.

A few companies, like AMC, announced last year that they would accept bitcoin as payment. Fintech companies like PayPal and Square are allowing users to buy crypto currencies on their platforms.

Tesla, the electric car manufacturer, accepts dogecoin as payment. Experts predict more global corporations will adopt or invest in cryptos in the near future.

Future of NFT's

NFTs (non-fungible tokens) have been around since 2014 but have only recently gained popularity.

NFTs are nothing but digital ownership of a wide range of irreplaceable intangible items. and have drawn high attention from celebrities and big companies.

Total NFT sales hit a record high of $25 billion in 2021, compared to $94.9 billion the year before, based on data by DappRadar.

However, there is considerable disagreement about whether NFTs are here to stay or will fade away. The total sale of NFT's fell to $1 billion for the first time in 12 months. According to DappRadar.

Experts remain split, with some screaming "bubble" while others say it's the technology behind NFt's-smart contracts on blockchain technology that offer real value.

Recent data shows that the market may be cooling off with over a million accounts actively purchasing NFT's at the start of the year, but the numbers declined to just 4,920,000 in the recent report by chainanalysis.

Experts believe the nft market will continue to suffer because of the declining cryptocurrency prices, the war in Ukraine, inflation, rising interest rates, etc.

Future of DeFi

If you are a crypto investor, you would have come across the term "Defi," which stands for Decentralised Finance, and refers to alternative financial services online powered by cryptocurrencies and blockchain technology.

DeFi uses smart contracts to replace traditional financial intermediaries like banks and lenders. The businesses we interact with on a daily basis to manage our finances will be replaced by software. Due to this, there is no central authority to report in DeFi.

DeFi is still in its initial stages, similar to the early days of the internet. Experts say there could be an Amazon or Google of the future in the DeFi space.

Bitcoins' future outlook

Bitcoin is a good indicator of the crypto market as it is the largest crypto currency by market cap and the rest of the market tends to follow its trends.

Bitcoin prices skyrocketed in the year 2021 and last November set another new all-time high price, which went over $68,000.But then came crashing down in the year 2022.

Bitcoin and other cryptocurrencies in the market have been sinking down due to the ongoing economic uncertainty that is mostly driven by surging inflation, bullish stock markets, rising interest rates, and fear of a global recession.

The Bitcoin lost two thirds of its value in November and has dipped as low as 17,500 in recent weeks. Experts remain split on whether bitcoin has bottomed out yet. Some say yes, and others say bitcoin could fall even further, as low as $10,000 in 2022.

Because of this volatility, experts recommend investing less than 5% of your portfolio in cryptocurrency at first.

Ethereum's future

Ethereum will be the second largest crypto currency next to Bitcoin. In the last six years, it has grown exponentially in value from $0.311 in 2015 to more than $5000 last year.

Even though it is a ways away from it's all-time high, ethereum has the potential to climb tremendously.

With the recent update (sept 19), ethereum is transitioning its technology to a less energy-consuming version that is referred to as "the merge".

Experts believe the ethereum could again break the $4000 mark by the end of 2022 and even possibly go over $12000. Only time will tell if the ethereum prices will go up or down to previous lows according to the experts.

The Future of Cryptocurrencies

We can assume the value of crypto currency may have for investors in the coming years, but in reality it's a new speculative investment without previous history to make predictions.

No matter what an expert says or thinks, no one really knows the future.

That's why it's important to invest what you can afford to lose and stick to conventional investments for long-term wealth building.

Keep your investments small and never prioritise crypto investments over other financial goals such as savings and debt repayment.

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