In October 2020, the Bitcoin was still at just under 10,000 euros. Within three months, the price multiplied and reached the 30,000 euro mark in January 2021. After a few slip-ups, the world’s largest cryptocurrency broke the next record. On November 10, Bitcoin reached its all-time high at 68,789 US dollars (almost 60,000 euros). In the slipstream of Bitcoin, other crypto currencies were also able to record impressive price gains over the course of the year. The crypto boom seems to have no end. But what do the crypto currencies predict for the coming years and is it still worth buying Bitcoin, Ethereum or Loopring in 2022?
Bitcoin Forecast: Experts expect multiplication
250,000 US dollars (218,000 euros) – this is the forecast of the renowned crypto analyst Matthew Hyland, which made headlines in mid-November. Because Hyland does not expect this Bitcoin price in 3, 5 or 10 years, but in January 2022. The price is therefore expected to increase almost fivefold within the next three months.
Other analysts are more cautious: Analysts at the US bank JP Morgan are still forecasting a Bitcoin price of 146,000 US dollars in the near future. Bitcoin is a scarce commodity that is increasingly competing with gold as inflation protection.
Blockstream CEO and crypto pioneer Adam Back expects Bitcoin to break the $300,000 mark in the next 5 years. He also sees the current economic environment as a driver of crypto prices and justifies his positive cryptocurrency forecast with the persistently low interest rates and rising inflation, which is why more and more investors are looking for alternatives for storing value.
Ethereum Forecast: Will the Price Triple in 2022?
Bitcoin is no longer the only cryptocurrency in demand worldwide. Other cryptocurrencies address specific shortcomings of Bitcoin – for example, resource-intensive mining, ever-increasing transaction costs and the increasing centralization of the formerly decentralized currency. The most prominent representative of The Bitcoin alternatives is Ethereum, the second largest cryptocurrency by market capitalization.
The experts are optimistic about the Ethereum forecast for 2022 and the following years. The analysts of the investment firm Goldman Sachs assume that Ethereum could even replace Bitcoin as the most valuable cryptocurrency in the medium term. According to the experts, Ethereum has responded better to the challenges of the blockchain in recent years and has the potential to become the most important platform for the secure exchange of information.
Goldman Sachs analysts predict that the Ethereum price could reach $8,000 within the next two months. Ethereum has far surpassed Bitcoin this year thanks to the rising interest of retail and institutional investors in the coin. Currently, the Ethereum rate is around 4,200 US dollars.
Technical analysts are reminded of 2017 and expect the price to rise sharply until January 2022. Matthew Hyland tweeted in early November, “#Ethereum’s just getting started.” He expects an extreme increase to at least $14,000 soon.
Loopring Prediction: Cooperation with GameStop Could Mean Breakthrough
Loopring is a second-layer solution for Ethereum that posted impressive price gains from October to November 2021 and increased its value fivefold. Currently, Loopring costs $2.60.
Loopring is based on Ethereum and aims to reduce the high transaction costs for Ethereum. The current price rally is due to rumors of a cooperation with the US computer game chain GameStop. Investors and industry insiders suspect that GameStop is using loopring technology to build a marketplace for digital goods such as NFTs. Digital marketplaces are nothing new, but GameStop has a large network of branch stores and thus enormous market power. If the rumors are true, Loopring would most likely also benefit greatly from the cooperation.
Loopring exemplifies a number of coins that have grown in the past year and each address specific problems of existing blockchains. How the course of the Loopring develops in 2022 and beyond depends above all on whether Loopring is able to translate its own solution into real business models.
Cryptocurrencies: Just a bubble?
Many financial experts are still critical of cryptocurrencies. For years, skeptics have argued that cryptocurrencies have no real function as a means of payment. As alternative money, Bitcoin, Ethereum and Co. do not work. Modern cryptocurrencies have clearly defined use cases that traditional currencies do not fulfill. An example of this is smart contracts, i.e. digital contracts between two parties without a regulatory authority. These smart contracts are particularly interesting for the financial sector, where a large volume of transactions between financial institutions is processed on a daily basis.
A second argument is that cryptocurrencies have no equivalent in value in the real economy. When you buy a stock of a company, you acquire a stake in a company, and the price of the stock is based on the expected real economic performance of that company. For cryptocurrencies, the only measures are the trading volume and the number of transactions.
The price of cryptocurrencies is currently essentially based on the fact that many investors are pumping new money into the market and the hope that one of the possible applications in the blockchain will capitalize in the near future. But sentiment is also changing among traditionally oriented investors. For example, the company of the well-known US investor George Soros invested in various crypto currencies in 2021.
Conclusion: Kyptocurrencies Forecast – What can investors expect?
Cryptocurrencies will continue to change the global financial landscape in 2021. More and more traditionally oriented investment firms are increasing their crypto portfolios. At the same time, fundamental questions remain unresolved at the moment:
- Is it possible to make trading in crypto currencies really secure?
- Will hopes materialize for real economic applications of blockchain technology?
- Will cryptocurrencies succeed in uniting their technology with ecological change?
- Will states start regulating the crypto market?
Interested investors should therefore continue to be cautious. While the majority of experts give a positive cryptocurrency forecast for 2022, cryptocurrencies remain a speculative and highly volatile asset. Cryptocurrencies should therefore only be included in small proportions in your portfolio in order to balance the risk.
Costs, Options & Co.: The Depot Comparison
If you want to buy an ETF or shares, you need a securities account. A comparison of the most important providers can be found in the table below, further detailed information in the depot comparison.
Which trading venues are available?
Number of tradable stocks, ETFs, funds, savings plans, crypto assets
Shares trading at Lang & Schwarz over the weekend
What is the minimum order volume?
Design reminiscent of social media platforms with social trading as a core feature
around 2,000 shares commission-free; Spread fees 0.09 percent; Conversion fees, as it is traded in US dollars; Withdrawal fee five US dollars
no custody fees; only those who do not log in for twelve months pay 10 US dollars per month
there are 17 trading venues for equities, such as US stock exchanges Nasdaq (511 shares) and NYSE (825), Frankfurt (119), London (367)
2,000 stocks, many ETFs, more stocks and many other products than derivatives, more than 30 crypto assets
$50; Copy-Value $500
Social Trading: Investors exchange market and stock market information on request; more than 30 cryptocurrencies; Minimum deposit when opening an account 500 euros
learning from others is easily possible; Exercise function
somewhat confusing price structure, which is available in detail only in English; relatively few stocks; no savings plans
Trendsetters who want to try modern investment techniques
intuitive app, modern desktop offer
Shares, ETFs and derivatives are traded without order commissions; only a lump sum for external costs of 1 Euro