What JPMorgan and Other Major Financial Players Are Saying About the Future of Crypto

JPMorgan

There are few organizations out there who aren’t ready to offer up their prediction on all things crypto. Bitcoin price predictions have been a major source of contention for years now, with figures in finance from every level providing both optimistic and pessimistic viewpoints.

The past few years have seen more acceptance for cryptocurrencies and other blockchain technologies from major financial institutions. All of these institutions now have some exposure to crypto, with many currently undertaking the development of their own fintech and crypto projects. Here’s what some of the largest players in the market have to say about crypto.

JPMorgan Optimistic for Diverse Range of Crypto Projects in 2022

JPMorgan published a report on Friday with a wide variety of predictions and commentary on not only cryptocurrencies but other blockchain investments as well. The report was authored by analyst Kenneth Worthington and comprises a comprehensive look into where crypto is headed for 2022.

The report highlights NFTs as an example of the onset of tokenization and fractionalization. While the report predicts that the use of NFTs as we know them today will increase, it speculates that this is only the beginning of what tokenization can offer and that we may see even greater adoption in 2022.

While JPMorgan considers DeFi applications to have made a poor showing in 2021, they are hopeful for 2022. The expected launch of Ethereum 2.0 in 2022 is one event that could greatly impact DeFi applications. Many such applications already rely on the Ethereum blockchain despite its high fees and speed issues, issues that Ethereum 2.0 is set to resolve. Some industry analysts have mentioned that part of this digital currency’s poor performance levels have to do with various schemes like the Immediate Edge software which is constantly being promoted these days. A quick check here reveals it is a scam.

The report also reiterates an earlier prediction on the price for Bitcoin, speculating that it could eventually reach a value as high as $146,000 in the long run, over double the current all-time high. They also have a prediction that Bitcoin could reach as high as $73,000 in 2022.

One major DeFi application to watch in 2022 is blockchain bridges. These applications provide the ability for DeFi applications on separate blockchains to interact with each other, rather than only with applications on their respective blockchains. There are many such projects underway, and if any see success, they could revolutionize DeFi.

Goldman Sachs Sees Shift in Bitcoin Use in the Future

A recent prediction from Goldman Sachs predicts that Bitcoin could soon take on a role as a store of value, much like gold. Bitcoin was initially conceptualized to serve a purpose along these lines rather than the speculative asset that it has become in the years since. Current volatility prevents this from happening, but Goldman Sachs believes that this may change in the future.

Their prediction states that $100,000 is a possible price target for Bitcoin if it were to become a serious competitor with gold in the store of value market. A previous prediction from Goldman Sachs stated that Ethereum could soon overtake Bitcoin. While Ethereum has been closing the gap, it still seems a long way off from catching Bitcoin.

Bank of America Hypes Up Expanded DeFi Applications

Bank of America published an extensive report detailing their predictions for the future of crypto in October 2021. Their report specifically set out to explore a diverse range of crypto opportunities rather than focusing on Bitcoin, Ethereum, and other mainstream cryptocurrencies.

The report highlighted DeFi in particular, noting that we’ve already seen massive investments from institutional investors in fledgling projects. As these projects begin to advance and flourish, we could see DeFi become a much more prominent part of the financial landscape.

Bank of America also predicts that blockchain technology will see much wider use in many more industries than it does today. It could see use in many of the conventional financial services we use today, like banking and loans, or even play an important role in real estate and other areas.

What Crypto Has in Store for 2022

It’s hard to say exactly where crypto will be by the end of this year. It’s certain that nobody could have predicted the events of 2021 regarding crypto, so there’s little reason to put too much weight in the specifics of these predictions. However, we can likely count on the two common threads running through predictions everywhere for crypto – that there will be more to it and that it will be different.

LEAVE A REPLY

Please enter your comment!
Please enter your name here