Over the last year or two, the globe’s interest in cryptocurrency has skyrocketed. Crypto has made news not only in investment circles but in pop culture too. With the growing popularity of crypto, everyone wants to be a part of the new buzz.
While a couple of investors described the first half of the year as a “breakthrough,” it is still evident that the concept is still in its initial days. As a result, it is subjected to constant evolution. This evolution makes it a very volatile industry that keeps investors on their toes. Making predictions for such an erratic industry is generally difficult yet, here are a few things to look out for in the Q4 2021.
What’s New In Store For Crypto in Q4 2021?
- Cryptocurrency Regulation
Even though cryptocurrency offers high yields to its investors, it is an unregulated market. This accounts for the most skepticism that is directed towards the market. Hence, lawmakers across the world are trying to make crypto in Q4 2021 safer for its investors.
How will this affect investors?
Incoming regulation, whichever nations it comes to, has both pros and cons. While, on the one hand, it makes the marketplace more safe and accessible for its investors, it also makes it easier for the government to impose tax regulations when it comes to crypto.
- Possible ETF Approval
An ETF stands for exchange-traded fund. It’s a regulated market in the US, and some argue — a key step in getting mainstream adoption for Bitcoin. This will make the approach more conventional, and one would not need to learn the nitty-gritty of cryptocurrency to trade digital assets. Making it more efficient to invest in crypto contracts in Q4 2021.
How will it affect users?
While investing in crypto ETFs would carry the same amount of risk, it would cut out the majority of the technical jargon and would allow investors to add crypto directly to one’s portfolio from the same brokerage with which they have an investment account.
- Global Corporations Adopting Crypto
A lot of mainstream companies have recently announced that they will accept Bitcoin payments. These include major companies like AMC. In addition to this, several fintech companies have also started supporting Bitcoin transactions. These include popular known companies such as PayPal. With such major investors into the market, new beginnings will be set for crypto in Q4 2021.
- Bitcoin Taproot Upgrade
Bitcoin is the most popular cryptocurrency. Yet, the last update it had was four years ago. The last update was called a civil war of sorts due to the large ideological divide that it brought with itself. However, after four long years the Bitcoin mining community has unanimously decided on an upgrade. This will be called the Taproot Upgrade. It is anticipated that the taproot impact will bring better privacy to the cryptocurrency. It will also enable better transparency during transactions. Going into the details requires a dedicated blog — which I’ll hopefully soon! The Taproot upgrade, meanwhile, will come into effect from November 2021.
How will this impact investors?
The crypto market is highly subjected to practical usage of digital assets, and these influence the price of the crypto to a significant extent. The upgrade would improve the privacy of multi signature transactions and will eventually open doors for smart contracts in Q4 2021
- The Exploration of CBDCs
A virtual form of fiat currency, the central bank digital currencies are the equivalent of national currencies, but only digital. A CBDC is a digital token for the official money and can be issued by only its monitoring authority. For instance, the Reserve bank of India is exploring launching its own CBDC.
Such fascinating financial innovations are being made possible only because of crypto.
What’s in store for Bitcoins in the future?
Bitcoin is what you call the star of the crypto market. One of the most widely used currencies, Bitcoin is a reliable indicator of how the crypto market functions.
Over the past year, the Bitcoin price range has seen quite some ups and downs. From a high point of $60,000 in April to less than $30,000 as recently as July. In September, Bitcoin climbed back toward $50,000,” says Time. This unstable nature of price is the reason why most experts encourage investments on the conventional side. However, most experts suggest that this volatility of the Bitcoin market is just short-term, and there will be little to no long-term impact on prices in Q4 2021.
As the next quarter comes closer, many will be involved in speculating what the crypto industry has under its sleeve for Q4 2021. However, the hard truth is that nobody knows what new trend the market will throw at investors. Everybody is pinning their hopes on mere predictions. This is why one must invest cautiously.
As the former Goldman Sachs Executive Raoul Pal has put
“Generally speaking, the last quarter of the year is when all the buses come. Everybody’s job is to be on the lookout for those buses. Because… you don’t want to be run over by the bus, and you want to catch the right bus…I bet that the crypto bus is a rocket ship and not a bus. And this last quarter will be extraordinary.”
Q4 2021 would indeed be extraordinary for crypto.