A once-in-a-generation investment phenomenon is on the way, as evidenced by the explosion in popularity of cryptocurrencies, digital artwork, and virtual real estate over the past year and a half. But what’s next for this revolution is open to fierce debate. Brian Mosoff, CEO of Ether Capital, a firm that hoards cryptocurrencies like Ethereum, looks forward to another big year for crypto, although he acknowledges that 2022 will have its ups and downs. In a recent interview, Brian Mosoff identified five trends that will define the year ahead: the rise of Solana, more volatility for the leading altcoin Ether, clarity about government regulations, and increased awareness of decentralized autonomous organizations or DAOs, and cryptocurrency staking. Evaluations of the famous CEO, Kirptokoin.com We have prepared for our readers.
“This altcoin is definitely something to watch”
Solana stands out in the altcoin pack Bitcoin and Ether had a great year, gaining 69% and 440%. But Solana embarrasses them both. The so-called Ethereum killer facilitates faster, cheaper transactions than Ethereum and has grown a hundredfold in 2021 to become the fifth most valuable cryptocurrency. Brian Mosoff says he believes the token’s best days are ahead:
I think Solana is definitely something to watch. There is a huge community gathered around Solana. There is an argument that they use a different programming language, Rust. To me, this is kind of a precursor to ETH competitors.
The famous CEO says that the token should continue to gain market share and that even if it will not replace it, it has “the right components” to be the best complement to Ethereum. Solana is far from a perfect protocol, as evidenced by recent attacks on its blockchain that slowed it down, exposed its network’s vulnerability, and undermined the developer’s trust in its credibility. Brian Mosoff demonstrates that the attacks are “huge uphill battles” to fight Solana and Tier-1 rivals before they have a chance to dethrone Ether.
Biggest near-term risk for leading altcoin: Taking profits
Ether could be a victim of its own success after quadrupling this year. Brian Mosoff says that countless crypto investors will owe taxes after enjoying the big rallies this year, which could lead to volatility in the short term. “Don’t be shocked if Ethereum sells out in early 2022,” the famous CEO says, but expects it to bounce back due to high levels of “suppressed demand” for the token.
There are many people who may not have sold, ready to pay these taxes. So in the short term (we’re talking about the first month of next year right now) maybe there’s a sell-off. Maybe this sale is a market that just needs to cool off after so many runs. Maybe it’s driven by people who literally need to sell to meet their tax obligations.
Regulatory decisions are vital as cryptocurrency gains
The rapidly developing cryptocurrency industry has attracted the attention of institutions and retail investors, and therefore regulators. Brian Mosoff says how the US government approaches crypto will be critical for investors to watch and can define the country’s future as an innovator:
The US wants to get it right, and they realize the stakes are higher than ever before. Again, you have a multitrillion dollar industry. Apart from businesses and these valuations alone, there are just over $3 trillion in crypto assets. And so, they realize that there is an opportunity here for this new class of being to become leaders in the free world.
Don’t expect groundbreaking decisions from the government in 2022, says Brian Mosoff, adding that before any clarity comes in, the US must first determine which regulatory agency will be responsible for overseeing the burgeoning asset class.
DAOs set to be a 2022 fashion word
Brian Mosoff says the rise of decentralized autonomous organizations or digitally organized, self-governing groups without central leadership is another trend to watch in 2022:
More anonymous, global coordination between developers and DAOs is something you’ll see. Reacting out of the blue or unintentionally, regulators are encouraging developers to be more anonymous, to exist outside of a jurisdiction they can control. This will be a very difficult balancing act. But I assume we’ll see more activity happening anonymously.
Big returns in staking
Brian Mosoff says the process of locking crypto assets in exchange for staking or interest payments will be one of the biggest crypto market trends of 2022:
As more investors become confident and comfortable with the asset class as a whole, and it’s here to stay, they’ll look for other ways to participate. And one of them will take these historically unproductive commodities and turn them into productive tools.
There are a few important things to know about staking. First, not all cryptos are eligible. Brian Mosoff states that Bitcoin, the leading cryptocurrency, cannot be staked due to the Proof of Work (PoW) system. In contrast, passively held Ether can be staked due to Proof of Stake (PoS). Brian Mosoff says returns can range from 5% to 10% depending on how many Ether holders stake.
“Staking is not for everyone,” says Brian Mosoff, noting that tokens must be locked to generate a risk-free return, so token holders cannot sell them without charging a large fee if the price drops or they need to raise money for taxes.
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