2024 was an exciting year for crypto. Some even called it the greatest year (so far) for crypto for several reasons, especially because of its more widespread adoption (the SEC approved crypto ETFs and institutional investors poured billions into crypto).
Both of those changes make accessing crypto easier for the average investor (ETFs) and also more acceptable to the general public. If Wall Street is more accepting of something (crypto, in this case), the average investor tends to feel more comfortable with it, too. And that means that they’ll use it.
Both of those factors can help drive demand, and demand drives up prices.
Higher prices of assets are major outcomes that investors are looking for, so, of course, this is good for the crypto market.
Having said that, though…
2025 is already looking even better
There are a couple of reasons to have even more enthusiasm about crypto in 2025.
One factor, of course, is the election of Trump in last year’s election and his positive outlook on cryptocurrencies.
And the Trump administration has made their support of crypto official now. Trump issued an executive order revoking Joe Biden’s executive order about crypto and implementing an explicitly pro-crypto attitude in Washington.
In the executive order, Trump directed the Federal government to take a very much “hands off” approach to private sector crypto use (as long as it’s for lawful purposes, of course).
And that approval of crypto helps to make the average person more comfortable using crypto (maybe even especially Trump supporters who may have been hesitant to get involved in crypto).
More importantly, though, Federal government approval makes businesses more comfortable using crypto in business and in institutional investing and savings uses.
Why? Because (like anyone else) businesses want to avoid entanglements with law enforcement. A crypto-friendly administration means that crypto becomes an option for transactions that businesses can adopt without fear of government pushback.
And while that is a great reason to be excited for crypto this year, there is…
A massive reason to believe crypto will soar in 2025
Two major factors that affect adoption of a technology in a culture are government acceptance (or, at least, tolerance) of that technology and ease of use.
As with any new technology, those who had knowledge of the technology itself (programmers, for example) and those who love the bleeding edge of any movement were the early adopters of crypto.
Most people come to the party later. And, frankly, it didn’t help that, early on, only people with computer science degrees really understood how crypto worked.
If you know any programmers, though, you know that designing an end user UX (user experience) isn’t usually on their radar. They’re looking for functionality, and they’ve had that with crypto for a number of years now.
But without a good user experience, the masses weren’t as comfortable using crypto.
That is changing. Andrew Fenton for Magazine by Cointelegraph writes,
Working out how to use seed phrases and hardware wallets, the gut-churning unease felt in the 15 minutes it takes for a large amount of crypto to land in a 34-character address that may have been mistyped — the UX sucks for ordinary people.
And once you’ve figured out the Ethereum network or how bitcoin works, there are a million other blockchains, each with its own unique rules and features, with no easy way to transfer assets or actions between them.
The average person may have understood conceptually how crypto works, but it was just too much of a learning curve and headache to want to bother with.
Blockchain devs are working to make everything simpler for the average user which could mean a huge influx of crypto investors. Again from Fenton:
An analogy in Web2 is the experience with online shopping. Research suggests that up to 70% of shopping carts are abandoned because the checkout process is too complicated, and each additional click increases the likelihood. After Amazon introduced one-click ordering, individual customers bought 28.5% more often, and revenue surged by 838% in a year.
Imagine being able to buy and sell crypto with the same ease and convenience of one-click ordering.
The implications are huge.
Referencing developer Kain Warwick, Fenton notes that “most users just want stuff that works.”
The average person, including investors, want a smooth, easy experience. They don’t want their crypto transactions to take up large chunks of their time during the day, much less the headaches of the steps in the transaction.
Completing your crypto transaction in one click, though?
That makes crypto accessible to even the least tech savvy investor. And with easier access to buying and selling crypto, that opens up crypto investing to the larger financial market which is orders of magnitude larger than the current crypto market cap.
What all that comes down to is…
More demand which means higher prices
And investors are always looking for higher valuations for their investments.
That means higher ROI.
What makes this even more appealing is that it’s an upward spiral:
Larger markets lead to higher valuations…
…which creates more interest from the market…
…which leads to increased investment…
…which leads to even higher valuations…
“Line go up” is a self-reinforcing feedback loop! It’s a win-win situation for everyone, especially for those already investing in crypto.
Which is why it is an ideal time for you to diversify into the cryptocurrencies market, if you’re not already involved. Why wait? You can get started right now in about 10 minutes! Alternately, to learn more about the benefits of diversifying your savings with cryptocurrencies, get your free Insider’s Guide to Digital IRAs.