From digital wallet applications like Venmo, online money transfer methods have evolved significantly in recent years. Instead of simply digitizing money and enabling bank-to-bank online transfers, cryptocurrency has made online transactions more efficient and secure. As the cryptocurrency market continues to grow, it will inevitably change the investment landscape in the coming years. In John Csiszar’s report on cryptocurrency predictions for 2022, experts predict that major businesses will start accepting cryptos like Bitcoin as payment options. In addition, investors and companies may raise their crypto allocations by a few percentage points, which means the value of cryptocurrencies will increase.
There is a myriad of cryptocurrencies available on the market, so you might be wondering which is worth investing in to get your money’s worth.
So without further ado, here are three cryptocurrencies you should check out in 2022:
Bitcoin was the first, and is also the most well known cryptocurrency. Marquit and Barakah explain that the idea behind the invention of Bitcoin was to provide an avenue for people to conduct and manage cross-border transactions without using financial institutions as intermediaries. This means you can send Bitcoin instantly to someone across the world without paying extra banking fees and exchange rates.
As the most well established cryptocurrencies in the market, Bitcoin’s reputation is built on being reliable among investors even in 2022 when the market has been extremely volatile. Bitcoin was the best performing digital asset from March 2011 to March 2021, with a staggering 230% annualized return. The same Finance Buzz article showed that as of May 2022, the market capitalization was at $737.5 billion. Moreover, the limited supply cap makes Bitcoin even more lucrative once the demand increases.
Unlike Bitcoin which is used for conducting digital transactions, Chiliz is used exclusively by sports fans. It’s the native cryptocurrency for Socios.com, where sports fans can buy and exchange fan tokens. Fan tokens bought using Chiliz on Socios give fans exclusive access to content, early tickets, and club voting rights for their favorite teams. Because of this, sports fans actively invest in Chiliz coins and exchange them for fan tokens.
A CNBC report on crypto and sports estimated that approximately $350 million was invested in crypto tokens by soccer fans in 2021 alone, which shows the huge potential that Chiliz coins have among avid sports fans. Moreover, 47% of sports fans are familiar with cryptocurrencies in sports, and at least 27% of them claimed that they own some. As more sports teams accept crypto assets in exchange for unique benefits, more sports fans will purchase cryptocurrencies so they can get fan tokens.
Polkadot uses a multichain sharding protocol, allowing cross-chain data transfers across different networks that makes several blockchains interoperable. The cryptocurrency is native to DeFi and NFT-driven apps, which are now rising in popularity. Its interoperability means the protocol can connect to public and private blockchains. Meanwhile, its scalability allows numerous transactions to be processed simultaneously in a short amount of time. Lastly, Polkadot has two types of blockchains: relay chains, the protocol’s main network, and parachains, where custom blockchains are made.
Despite being relatively new in the cryptocurrency ecosystem, Polkadot has already made its mark in the market for its interoperability and scalability. In addition, it has become one of the leaders in the cryptocurrency market, with a market capitalization close to $24 billion. Shawn Du’Mmett states that this currency is still under development, but its current momentum in the cryptocurrency market shows huge potential.