Bitcoin and its projection for 2022

Bitcoin Projection 2022

Since May of this year, Bitcoin has suffered a decline in its market price. Well, large investors and the reactivation of mining machines have caused their price to remain at an equilibrium point between $40,000 and $45,000.

Likewise, from the first week of August 2021, this current price, according to expert analysts, could be the basis for a new uptrend in the coming weeks or months, since many factors favor this rise in price.

Bitcoin will continue to malfunction thanks to its environment

In turn, it is important to keep in mind some of these factors to highlight. One of the most notable is the rise of miners on the Blockchain network. This has led to a recovery in the percentage of the hash rate, which had fallen, in part, due to the great repression and persecution by the Chinese government of Bitcoin miners.

To have context of the blow that Bitcoin suffered by the Chinese government in the past, we must know that more than 60% of Bitcoin mining occurs within China and with the prohibition of financial institutions to operate with the cryptocurrency there was a sharp drop in the price of Bitcoin.

That is why new investments and alternatives have emerged for this problem. One of them is the massive migration of miners to countries that facilitate the installation of these Bitcoin farms (Russia, the United States, and even Dubai) and that in turn offer these investors a low energy cost for their farms.

Also, the sudden rise of Bitcoin has been a consequence of the inclusion of cryptocurrencies in the world of large companies. The most notable example is that of Elon Musk, who included Bitcoin as a payment methodology within his company. Although this decision was removed a few weeks ago, this led many companies, banks and even governments around the world to dare to venture into the crypto world.

Bitcoin leads in Latin America

It is worth mentioning that countries like El Salvador, in Central America, have seen a safe alternative to facilitate their finances. Well, the inclusion of cryptocurrencies (specifically Bitcoin) will achieve a protected economy that is safe from inflation.

This could lead to the creation of a domino effect within Latin America, which encourages the countries of the world to dare to include it within their economy legally. A clear example of this is the massive adoption that El Salvador made with cryptocurrencies and Bitcoin.

It is important to know that even relevant politicians have supported Bitcoin in their countries. A good example is that of the Panamanian deputy, Gabriel Silva. Well, he published on his personal Twitter account that he would present a law similar to that of El Salvador to incur cryptocurrencies in the economy of Panama.

More and more companies in the world want to adopt crypto

Also, on the business and investor side, MicroStrategy, Square and Tesla have already backed their money with Bitcoin and are offering these services to the public. Meanwhile, PayPal already allows the commercialization of BTC and other cryptocurrencies to its users in authorized establishments only in the United States.

On the other hand, the financial institution PNC Bank is evaluating making investments and entering the field of cryptocurrencies.

Considering all these factors, there is no doubt that Bitcoin continues to grow reliably and gain more and more ground in today’s technological world. This as a relevant element of the 4th industrial revolution.

And it is not difficult to think that the price range of the last few weeks is just a small start for an uptrend that can exceed any expectations raised.

Finally, the creator of the Stock-To-Flow (S2F) model “PlanB” predicted that by the end of 2021, Bitcoin could break the $100,000 barrier. This is due to the possible massive entry of investors with large capitals and the continuous inclusion of cryptocurrency in day-to-day finances.