The market for cryptocurrencies is still developing. Even the most established digital currencies constantly change their code, long-term objectives, and philosophical tenets. Regulators are working to control cryptocurrency trades, ownership, and taxation. Cryptocurrency values are as erratic as ever among the commotion. And the average investor is scratching their head, trying to figure out what the whole jumble means. Creating a profitable long-term investing strategy is difficult in this constantly shifting environment.

There is hope at the end of the tunnel- an excellent news tunnel—and it’s not, I hope, an approaching train. I believe that if you closely monitor Bitcoin (BTC -3.77%), Ethereum (ETH -5.02%), and Ripple (XRP -4.85%) in the second half of 2022, you’ll enter 2023 with a clearer understanding of the future of the cryptocurrency sector.

After “the merging,” Ethereum

A significant upgrade to the Ethereum blockchain network is about to happen. The update is bringing about several significant improvements to how Ethereum handles transactions and laying the groundwork for several more platform updates in 2023 and beyond. The outdated Proof-of-Work system will be replaced by a more efficient Proof-of-Stake system in a process known as “the merge.” transactions will become faster and less expensive, Ethereum mining will be eliminated, and the redesigned Ethereum ecosystem should be able to fend off threats from purported Ethereum killers.

Although a specific date hasn’t been set, the integration should happen in September. Investors need to monitor how the revolutionary platform upgrade turns out closely. Of course, the modification itself must first be implemented without a hitch. Finally, the change is unquestionably favorable for Ethereum in the long run, but the immediate market response is unpredictable. We’ll watch how crypto-based software developers embrace the improved Ethereum platform.

After the merger, according to the co-founder of Ethereum, Vitalik Buterin, the platform would be about 55% finished, allowing the potential for further development. Whatever transpires in September and the following months should provide hints about Ethereum’s future direction and how market participants will adjust as the decentralized computing platform matures.

Is Bitcoin prepared to replace gold in the digital economy?

13 years later, the biggest name in cryptocurrencies is still the first one to enter the market. But Bitcoin is still figuring out where it fits in the world economy. Starting in 2022, the price of one bitcoin was $46,700. By mid-May, that stratospheric price had dropped to $17,700, and the price chart was shaky.

Bitcoin investors do not want to see this erratic volatility. Bitcoin was always meant to serve as a secure long-term store of value and a convenient electronic alternative to paper money. Although the cryptocurrency may be moving toward achieving these objectives, no one today would describe it as a safe value vault. Even Bitcoin proponents like Michael Saylor, CEO of MicroStrategy (MSTR -3.12 percent), acknowledge that the system has not yet realized its full potential and that long-term stability won’t come until a reliable regulatory framework is in place.

What is the #Ethereum–#based #coin prepared by #Goldman #Sachs? #XinFin #XDC‼️ 🚀🚀🚀✅Goldman sees flaws with bitcoin, says it’s too early to say it will replace gold https://t.co/ElynaOOC3M pic.twitter.com/7kZQPm6HqK

— symmetry7 (@synergy0421) April 29, 2021

As a result, you should use the price trend for Bitcoin as a gauge of how well cryptocurrency regulatory initiatives are doing over the coming months and years. Even though this is a global problem, the American market should set the example for applicable regulations and taxation policies. Bitcoin will continue to be erratic until the government and the organizations supporting it figure out these details. The specifics are where the devil is in the regulatory system’s development. Once more, the fluctuations in the price of bitcoin should be used to gauge how well these efforts are doing.

Also, read – Mark Cuban Invests in CryptoSlam NFT Platform

The legal difficulties with Ripple could influence the market as a whole.

Of course, the Ripple network and its XRP cryptocurrency are also important. In December 2020, the Securities and Exchange Commission (SEC) sued Ripple, claiming that some company executives had been selling digital securities without being registered. Most cryptocurrency exchanges quickly stopped supporting XRP trading, and legal proceedings are still ongoing. The regulatory reviews are stated in the Bitcoin section, and this debate goes hand in hand.

Next week, a summary ruling is expected from the District Court of Southern New York. The court’s ruling won’t end the case, but it should show which way the judges are leaning on several crucial points. Is Ripple’s XRP a security that can be purchased, as the SEC contends, or is it merely a payment system, as Ripple asserts? Should the trading and spending policies for different digital currencies be fundamentally distinct, or should all cryptocurrencies be viewed through the same prism?

Whatever conclusions Judge Analisa Torres reaches in the forthcoming summary decision, her legal analysis will influence the bitcoin trading regulations debate. Additionally, the decision could impact Bitcoin, Ethereum, and other cryptocurrencies, as well as the basic foundations of the cryptocurrency market. With full-featured trading on American cryptocurrency exchanges, XRP is at the forefront of that discussion and looking to resume operations. Investments in cryptocurrencies are currently determining their long-term prospects. You will benefit from the knowledge you gain from observing the second half of 2022 for Ripple, Ethereum, and Bitcoin.