Introduction
Crypto has always been a wild ride. From the very beginning, it has been dogged by criticism and doubt about its value. However, over time, the industry has evolved into something more than just a digital currency; it’s become an entire ecosystem of blockchain-based technology that is changing how the business operates. Nowhere is this more evident than in the emerging trend of government-backed digital currencies. In 2022 we will see new cryptocurrencies emerge from existing ones like Bitcoin Cash and Ripple as well as from new projects like Pundi X, which aim to improve upon their predecessors’ shortcomings, such as scalability issues or lack of interoperability between different blockchains
Government-backed digital currencies
As governments around the world work to regulate cryptocurrency, some are starting to issue their own digital currencies.
These include Venezuela, which launched its state-backed Petro currency in late 2018; Iran, which is developing a national cryptocurrency called Rialto; and Russia, which announced that it would be launching its own national crypto token.
The reasons for these moves vary but are often motivated by financial considerations—for example, Iran’s Central Bank governor says that “crypto assets offer an opportunity for better management of inflationary pressures."
Tokenization of NFTs
Tokenization is the process of replacing an asset with a digital representation, which can then be exchanged by anyone. This can be done in many ways:
- You could have an app that allows you to use your own token for trading or exchanging NFTs.
- You could create your own custom tokens that are distributed among users and then traded on exchanges like Binance, Poloniex (1), and KuCoin (2).
- Or simply download an existing cryptocurrency wallet app like Exodus, where all the wallets are stored inside it, so you don't have to worry about keeping track of multiple accounts or passwords anymore!
Centralized exchanges driving DeFi innovation
Centralized exchanges are the most popular way to trade crypto. They have the most liquidity, which means they have a large number of buyers and sellers. This means that when you buy or sell on an exchange, your order will be filled quickly and with minimal fees.
Additionally, centralized exchanges have a better security record than decentralized ones because there's no need for an entire network of computers (or nodes) to secure transactions in order for them to work smoothly—all that's needed is one server. That makes centralized exchanges more secure than their decentralized counterparts because hackers can't access all those servers at once; instead, they'd have only one computer targeted at stealing information from your account instead of trying their luck with every single member who uses it!
Stablecoins as a means to keep up with the Fed’s monetary policy
Stablecoins are a means to keep up with the Fed’s monetary policy. They are intended to provide investors with a stable reference value for all cryptocurrencies, which can be used as an alternative to fiat money. The majority of stablecoins are pegged on the price of gold or another commodity, but there are other options available as well.
The evolution of basic income programs
The idea of basic income programs has been around for a long time. In fact, it's one of the oldest ideas in human history—a concept that's not just tied to socialism but also libertarianism and even capitalism.
For those who don't know what this means: Basically, everyone gets money from the government (or maybe your employer) every month so they can cover their basic needs like food and shelter without having to work jobs they hate just to get by. The catch? You have to prove that you're able-bodied enough so there's no fraud involved; otherwise, you'll be cut off from receiving any more payment than what was already paid out during your first year with no issues detected during inspections at any point thereafter.
Crypto trends that will take shape in the coming decade.
- Government-backed digital currencies:
The government will be a key player in crypto, and it's not just because of regulation or taxation. Governments have always been interested in creating their own currencies and managing them through central banks, but they've never had the technology to do so until recently. As we've seen with Bitcoin and Ethereum, cryptocurrencies can be useful for circumventing geopolitical issues like sanctions or other trade embargoes; however, this isn't always easy when dealing with countries that don't want anything to do with your project. To combat these challenges, some governments have begun experimenting with issuing their own digital currencies—or at least working on making them more accessible for people who use cryptocurrencies as an alternative way of storing value outside of fiat currencies (e.g., dollars).
2 . Tokenization of non-fungible tokens (NFTs):
The next big innovation in blockchain technology is coming from NFTs; these are basically collectibles where each token represents something different than another token could represent—think Pokemon cards or Beanie Babies, but without any real monetary value attached yet! This means that developers could create entire ecosystems around NFTs rather than just one type of asset like before, which opened up opportunities for completely new business models such as microtransactions between gamers who play together online through streaming services like TwitchTV (3), where viewers pay only $5 per month instead paying $15 every month like Netflix does currently today."
Conclusion
Digital currencies, NFTs, stablecoins, and basic income have all been on the rise in recent years. They’re poised to continue their ascent as long as governments and private organizations embrace them as a way to combat unemployment and inequality. Expect more of these trends to emerge in 2022—and maybe even see some new ones taking shape!
