As the mainstream continues to understand what web3 technologies are, cryptocurrencies and their allied technologies continue to be the never-ending mystery that they have been for the past decade.
The truth is, nobody knows when exactly when cryptocurrencies will go back up. Studying the past shall give humanity an idea of when cryptocurrency prices shall return to the so-called normal.
We must first understand what happened to cryptocurrency prices last year before any projections in 2022 can occur.
They shall be considered serially.
Cryptocurrency Prices Are Experiencing a Correction
With the short-minded perceptions that guide newbies, cryptocurrency prices are still in profit as compared to the same as in late 2020. The observation alone brings the obvious truth about web3 technologies: they are the fastest-growing assets known to humanity. It is based on a year-on-year analysis of price correlations between regular assets and web3 assets.
That correlation brings to the fore an understanding that volatility is the principal governing principle behind web3 assets. With such scenarios, it is then possible to understand the price correction mechanisms that govern web3 assets.
Demand Still Rules The Cryptocurrency Markets
Many factors point to the rising demand that exists within the web3 industry. The first of these is Bitcoin’s dominance. As Bitcoin continues to rule the industry, cryptocurrency prices are sure to rise exponentially. It will happen as adoption web3 adoption continues to be an issue. Governments still don’t understand web3 technologies and the innovations they offer. The industry is larger than the internet at its beginning.
People in villages in Africa and other underdeveloped places place a premium on web2 technologies. How much so web3 technologies?
Price Corrections Are The Big Players Taking Profits
From the cryptocurrency winter of 2017 to the bull run of late 2020, the web3 industry has experienced some of the wildest price moves known to assets. Price moves occur when “whales” or institutional players either invest or withdraw from the web3 markets. The moves dictate how asset prices will continue to move this year.
The web3 industry is still in its nascence. The big guys that understand how prices move will do their thing. When they do so, cryptocurrency and other media organizations will continue to interpret those moves at the speed of light (or lesser). The best predictions of cryptocurrency price corrections have more to do with government moves than with any other factor at the moment.
Government Moves Will Rule in 2022
Government intervention shall be a major force in the web3 industry’s price movement. Bitcoin’s adoption by El Salvador late last year to the launch of the worlds-first Bitcoin ETF are indicators of a rapidly developing industry. The critical issue that governs this is the “geek speak” that determines if cryptocurrencies will go back up or back down.
The web3 industry has moved from the geek space to understanding and innovation. The mass adoption of the web3 space is just around the corner as the next few years determine how humanity approaches these changes.
These government moves are governed by one thing only: regulation. The egg heads get it. The issue is getting everybody else to get it and fall in line.
The utility is The In-Thing
As the web3 space shifts from ETH 2.0 to ETH 3.0, the big issue that will be on everybody’s lips will be “utility”. The industry now has new “Ethereum killers” that will determine how best smart contracts and their various derivatives shall rule the space.
Bitcoin’s dominance will fall massively once everyone gets it. That is already a given.
The simple principle that governs the Gaussian rise and fall of assets will determine how this occurs. Bitcoin’s dominance follows the classical bell curve for anyone who understands the rise and fall of assets.
The bigger utility curve of which Ethereum is the progenitor that shall take much, much longer than Bitcoin’s rise and fall. In-between these, we should expect sharper corrections in the cryptocurrency space.
Smart HODLers Shall Ultimately Rule
The term ” Hold on For Dear Life” shall soon undertake a new meaning as HODLers with the wrong perception will lose because of the understanding that Bitcoin will always keep going up. That’s not how markets work.
Those who understand how markets work will explore the sub-markets of the cryptocurrency space. They will read white papers first before putting funds in as investments. They are the ones who will become the new enormous whales because they see that the new markets are wild. And they have the guts to HODL. Albeit smartly.
The World Will Change Because of Web3 Technologies
It does not need to be explained how far the world will change because of how the world will change because of web3 technologies. The governments know this. All they are trying to do is to prevent a shock wave that will disrupt the status quo.
Those who ultimately understand the shadowy world of governments, investors, and innovators will see the future and hold it before everyone else.
As long as web3 becomes the new standard, it will create many new millionaires and billionaires. But, based on utility.
Already, millennials and generation Z see the future and are taking their place there.
Web3 Technologies Will Go Mainstream
We can already see that cryptocurrencies and their allied technologies are part of popular culture. Everyone wants to understand what cryptocurrencies are and how they work. With the emergence of new technologies such as metaverse ecosystems, artificial intelligence, Internet of Things (IoT), Internet of Behavior (IoB), and others will need cryptocurrencies and their allied technologies to improve how they work. Examples, where this is already occurring, are in gaming systems where Non-Fungible Tokens (NFTs) are used as digital collectibles.
As utility rises, more use cases shall abound, and older technologies across industries and sectors will give way to web 3 technologies.
New blockchains and innovations shall take over the space as developers flock to the web 3 industry not just because of what cryptocurrencies are, but because of what they can do.
What’s The Verdict?
Just as the adoption of web3 technologies increased exponentially last year, they will rise in 2022 as well. For now, though, a new definition of HODLing is needed. Newbies in the cryptocurrency space shouldn’t consider the recent cryptocurrency price drop that occurred during the holidays as the end of the road. It has happened before, and it will happen again.
Cryptocurrencies aren’t going anywhere, whatever the skeptics and naysayers say or think. Cryptocurrency Prices will bottom out before testing the last all-time high of $60,000 upwards. Experienced investors and members of the cryptocurrency industry expect prices to cross the $60,000 mark within the next quarter.
So hold on folks, we are in for a wild ride!