In India, cryptocurrency trading is still in its infancy. There have been a few misunderstandings along the way, such as that it will be banned in India. Despite the fact that cryptocurrencies are now unregulated and unbanned. The Reserve Bank of India (RBI) imposed a restriction on supporting cryptocurrency transactions, but the Supreme Court overturned it in March 2020. India has finally implemented a crypto tax system! The government took a conservative stance on taxation by setting a fixed 30% tax rate on revenue from digital virtual assets like Cryptocurrency and NFTs. But it is safe to say that people can access cryptocurrency trading through various brokers, forums, and crypto exchanges.
Many such changes exist in the cryptocurrency world, which might open up new avenues for investors and traders. Here’s a look at some of the key trends that could arise in the cryptocurrency market in 2022.
- Regulation of Cryptocurrency: Cryptocurrencies are a very volatile asset class since their prices fluctuate dramatically in a matter of seconds. Authorities are looking into the concept of authoritarian regulation for the crypto market to prevent questionable schemes caused by extreme price volatility. In reality, several governments are predicted to focus on cryptocurrency legislation in 2022.
- DeFi (Decentralized Finance): DeFi refers to the algorithms that underpin cryptocurrencies and are sufficiently coherent to keep track of transaction records and avoid errors. Decentralized financing has aided the widespread adoption of cryptocurrencies. Decentralized finance can take center stage in 2022, enjoying significant development. More precisely, the momentum from 2021 in the DeFi domain is expected to transfer into a flourishing market in the upcoming months.
- Payment Method: Several companies like Tesla, Starbucks, Paypal, etc, has adopted cryptocurrency to facilitate payments on their internet platforms in 2021. For crypto fans, the new way of payment has emerged as a lucrative option, attracting a growing section of the population to such firms. Even in a broader commerce context, the use of cryptos as a form of payment is projected to rise this year. However, considering recent market crashes in the cryptocurrency field, the rate of growth will be determined by people’s continued trust in digital currencies.
- Blockchain-IOT Integration: There has been a growing trend of blockchain being combined with other technologies like Big Data and Artificial Intelligence, to name a few. Corporations are also becoming more interested in using blockchain for IoT (Internet of Things) applications. The use of blockchain technology looks to be the most appropriate and effective solution to the many 5G IoT difficulties. Due to the automatic encrypted and immutable nature of blockchain, it has the potential to help solve numerous problems related to security and scalability. More pilot projects and initial use cases in this subject are likely to be announced in 2022.
- Blockchain and the Metaverse: Metaverse is the upcoming universe of Facebook, where users will be able to have ‘immersive’ experiences using new technologies such as blockchain, augmented reality, and virtual reality. The Metaverse would be incomplete without blockchain technology because everything would be kept in a centralized network. Blockchain could enable the emergence of a new generation of social networks that might be even bigger and better than the current ones, such as Facebook, Instagram, Twitter, and YouTube, which have become synonymous with the term “social media.”
Crypto trading in India can be done through brokers, forums, and crypto exchanges safely. Cryptocurrencies have unquestionably established themselves as an asset class that is more than a passing craze. Despite occasional hurdles in the form of price volatility and regulatory setbacks, the crypto business is projected to remain in the spotlight for one reason or another. It will be interesting to see how effectively these tendencies catch on in 2022, which will mark the start of a new year for cryptocurrencies.