A Blockfi executive said, “It’s been a huge year for crypto.” She noted that fear of missing out (FOMO) will be a big driver for buyers, and expects crypto regulatory readability next year.
Crypto FOMO will increase investments by 2022
Flori Marquez, Co-Founder and Senior Vice President of Blockfi, talked about the future possibilities of cryptocurrency through 2022 in an interview with Yahoo Finance on Friday.
Founded in 2017, BlockFi makes it easy for its users to buy, sell, and earn crypto. The crypto-based financial firm has institutional backing from buyers and investors, including Valar Ventures, Galaxy Virtual, Constancy, Akuna Capital, Sofi and Coinbase Ventures.
In a brief Blockfi consumer analysis, Marquez discussed the cryptocurrency towards 2022. She showed that over the last three years, Blockfi had:
- 10,000 clients at the end of the first year
- 100,000 at the end of the second year
- Over 500,000 at the end of this year
This trend shows that 2022 will record a tremendous increase in the number of clients.
She acknowledged that the price of bitcoin has dropped slightly but put it into perspective:
If you look at year-over-year returns for bitcoin, bitcoin has returned, as of today, 112%. And when you compare that to gold and S&P respectively, that’s a negative 4% and 24%. So, year over year, it has been volatile in the last 30 days. But it’s still a great investment for people who were participating a year ago,” she described.
She added that this year was an important one in terms of consumer demands for cryptocurrencies. And that there have been big moves in US consumer interest in this asset class.
Three things likely to draw consumers to crypto
Flori believes that the market will see three things in 2021.
First, many of the US consumers will join this area for the first time because of FOMO. People are going into the holiday season, and talking about their investments this year. Crypto has become more digestible to many consumers than it was five years ago.
Second, because of the Covid-19 pandemic, many people are ‘retraining talents’ and changing jobs. The crypto and Fintech sectors have become attractive to everyone.
Third, Marquez believes that crypto regulation will be clear in 2022. She understands regulators are focusing on consumer protection and sustaining innovation in the US.
She noted that regulatory clarity will bring comfort to the many crypto-based companies while also ensuring consumer safety over the long term. And it will help mainstream adoption as well, as consumers will feel more confident knowing that regulators are ready in this area too.
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