2021 has been a big year for cryptocurrency. Bitcoin hit all time highs, large companies are investing in blockchain technology, and countries are starting to become more accepting of the use of crypto. In case you aren’t familiar with the term, cryptocurrency is a digital currency that can be used to pay for products and services. Crypto will play a gigantic role in how business will be conducted in the near future, and will affect almost all industries. This makes it essential that we as marketers keep track of any developments in crypto since they will likely affect our clients moving forward.
With that in mind, here are 3 trends that will have the largest impact on crypto in 2022.
The Rise of the Metaverse
Several weeks ago we covered Facebook’s rebrand to Meta. It was the latest step in the growth of the virtual world known as the metaverse, which blurs the line between physical and digital realities.
So what does this have to do with the future of crypto?
Cryptocurrency serves as the medium of exchange in the metaverse. It’s what you use to buy everything from virtual land, concert tickets, NFTs, and so on. Basically any purchase in the metaverse will use some form of cryptocurrency.
As more companies invest resources into the metaverse, many of them are also developing their own cryptocurrencies to strengthen their position in the virtual world. All of this will change how brands operate, including their product offerings, advertising methods, and how they build consumer relationships.
Image from Coindesk.com
Increased Regulation
One of the founding principles of cryptocurrency is that it is decentralized. This allows for instant transactions that are irreversible and viewable by anyone. Given the nature of crypto and it’s relatively recent rise to prominence, it has gone largely unregulated.
This is set to change.
While it is true that there are a number of countries that more accepting of cryptocurrency, many governments are cracking down on crypto. Most notably, the Chinese government banned crypto trading and mining. While that is on the harsher end of the spectrum, there is legislation being discussed in many other nations to regulate cryptocurrency.
In the United States, bills surrounding the regulation of cryptocurrency are primarily focused on preventing cybercrime and tax evasion. This is meant to protect investors from scams often associated with crypto. Europe is in the process of passing MiCA, or the Regulations on Market in Crypto-Assets. Simply put, MiCA would require crypto asset service providers to obtain a ” passportable license” in order to conduct business in the EU.
As expected, the regulation of cryptocurrencies is a hotly debated topic among investors. Only time will tell if these regulations will benefit the industry in the long run.
Image from Pexels.com
Environmentally Friendly Solutions
A concept that is often overlooked when it comes to cryptocurrency is the negative impact that the industry has had on the environment. This is because crypto mining requires a ton of energy and electricity due to the various computers and cooling systems involved in the process. Oftentimes, fossil fuels and coal are the main source for generating the electricity needed for crypto mining.
But just how much energy are we talking about?
In 2021, it was reported that Bitcoin mining consumes 121.36 terawatt hours a year, which is more than the entire country of Argentina.
The insane energy usage associated with crypto mining makes it intriguing that eco-friendly companies such as Tesla have invested heavily into Bitcoin, though earlier this year the company announced it had suspended the use of Bitcoin for purchasing their vehicles.
As more consumers are prioritizing sustainability, it will be interesting to see how major brands adjust their crypto strategies. It could potentially open the door for cryptocurrencies that have lesser carbon footprints or don’t rely on crypto mining to rise in popularity.
Image from TRCCompanies.com
Conclusion
The importance of cryptocurrency in the global economy is growing by the day. As marketers, we need to stay up to date with the trends that will impact the future of the industry, as it will most certainly affect how we do business for years to come.
If you have any questions or need help with your crypto marketing solutions, contact us using the form below.
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