At the end of 2021, the bullish moment in the cryptocurrency market invited more than one to make optimistic predictions about the immediate future of this increasingly popular market.
Predictions are everywhere, from weather forecasts to pools. Human beings have always wanted to know the future.
Naturally, over the centuries, human beings have been sophisticated their methods. Today, technologies such as artificial intelligence and big data allow predictive models to be refined more than ever in areas such as the economy.
However, with everything and with that, human being continues to make mistakes. Sometimes a lot.
About Gurus
Recently consulted by Business Insider Spain, the scientist and disseminator José Miguel Mulet assured of the human being’s ability to predict the future: “If someone could really know what was going to happen, they would not wear a turban, but a suit and tie, and would dedicate himself to making a fortune on Wall Street”.
In fact, the gurus don’t exactly wear outrageous clothes, but instead, wear smart suits and expensive watches and drive high-end cars while selling cryptocurrency courses on YouTube.
In recent years, the world of decentralized finance, which includes cryptocurrencies, Blockchain technology, and NFTs, has proven to be an ideal place to achieve high returns for those who know the exact moment to jump on the boats and jump from them.
But there is a problem: these are technologies so new, volatile, and uncontrollable that, in reality, nobody can ever guarantee anything about the crypto world. And those who do take a high risk of being wrong.
At the end of 2021, the good health exhibited in recent years by cryptocurrencies led many to think that the ball would still be rolling in 2022. They were wrong.
Central banks stopped printing notes, interest rates rose and inflation soared due to, among other things, an unprecedented energy crisis in which climate change and the war unleashed by Russia in Ukraine come together.
Investors, including some of the strongest believers in the crypto world, took to the dust and abandoned their bets to take refuge in stable values such as gold, causing the collapse of digital currencies, which lost much of their value. Crypto winter had arrived.
Misguided Predictions of 2022
Business Insider Spain has compiled some of the most striking predictions in the crypto world for 2022.
- Bitcoin will go above 70,000 euros: it was assumed that the year would go well, there would be no crypto winter and the value of digital currencies would always be better in December than in July. The result is that BTCDirect missed the mark by a lot. He attributed Bitcoin, for example, a value of more than 70,000 euros for the month of July of this year. Come September, the main cryptocurrency is exchanged for just about 20,000 euros.
- Bitcoin will replace gold as a refuge value: the prediction of Zach Pandl, co-director of global strategy for currencies and emerging markets at Goldman & Sachs, one of the most important fund managers in the world, was wrong. Now one of the main victims of the current economic situation is Bitcoin.
- Two countries will join El Salvador and adopt bitcoin: There were even a couple of candidates: Paraguay and Panama. For now, however, neither one seems very interested in following in Bukele’s footsteps.
- Ripple and the SEC will reach a favorable agreement with XRP investors: Although an upcoming agreement is not yet ruled out, it has not arrived and the conflict is escalating.
- Luna, the best cryptocurrency in 2022: In May, the cryptocurrency, a stablecoin that in theory was associated with the value of the dollar and that was also controlled by algorithms on paper to reduce its risks, collapsed and spent hours being at 80 dollars to be exchanged for 0.0004 dollars: one of the biggest stock market crashes of the last decade.
By Audy Castaneda
