29.12.202111:56 Forex Analysis & Reviews: Bitcoin did not pass the test as a store of value

What's should be looked forward to next year? The crypto economy should continue to expand by increasing the number of applications, ways to use tokens, and basic blockchain networks.

But since inflation is the biggest concern, Bitcoin is likely to be tested as a store of value, or "digital gold."

However, Bitcoin did not pass this test. Inflation rates have risen over the last period of time, which led to a sell-off in stocks and cryptocurrencies. The first cryptocurrency is trading in a similar way to fast-growing tech stocks and assets that are under pressure as investors choose safer investments in a harsher macroclimate.

According to VanEck, one of the attractive growth areas is the tokens used for DeFi and other smart contracts.

Ethereum is a giant in smart contract protocols. However, its network is currently jam-packed and suffers from high transaction fees. Other networks and tokens are gaining momentum, including Solana, Polkadot, Cardano, Avalanche, and Algorand.

Stricter regulation could be another obstacle for digital assets. The Biden administration and Congress are exploring how to establish new rules for the industry, including stablecoin tokens designed to maintain a fixed value.

But cryptocurrency is a complex area, and Washington doesn't seem to be able to agree on how to control it. Congress recently held a hearing on cryptocurrency, finding a huge rift between Democrats and Republicans over how to set the new rules.

VanEck reported that Washington is at an impasse in terms of cryptocurrency regulation.