Bitcoin hit an all-time high in 2021, but has since suffered several sharp declines.  Ethereum also soared to new highs that year.  From there, the U.S. government is looking to add some new regulations to all cryptocurrencies.  

However, this did not change people's minds.  They are now more interested in cryptocurrencies than ever before.  Although investors have been loving it, pop culture is getting in on the act.  2021 was a breakthrough year in every way.  The crypto industry is paying more attention and attention now than ever before.  

Still, the industry is growing and in its infancy.  That's why most bitcoin highs are accompanied by huge drugs.  It's hard to predict how things will play out in the long term, but some experts say:  

Cryptocurrency regulation  

The U.S. government is showing more interest in the regulation of cryptocurrencies.  Lawmakers want guidelines and laws to make encryption safer for investors.  

Some people want some kind of regulation because it would prevent cybercriminals from using blockchain for nefarious means.  However, others worry that involving the government could end up creating huge taxes and other problems associated with fiat money.  

In fact, the IRS has already set some rules.  It wants access to the money earned and traded through cryptocurrencies.  That means exchanges need to do more work to publish tax forms, which could be seen as a good thing or a bad thing.  

Crypto ETF approved  

The first Bitcoin ETF was launched on the New York Stock Exchange in October 2021, a huge breakthrough.  Investors can now buy cryptocurrencies directly from investment brokers.  If they already have an account, they can simplify the process.  

However, the BITO ETF is inadequate because it does not hold bitcoin directly.  Instead, it maintains bitcoin futures contracts.  While these follow the general trend, they may not accurately track the price of Bitcoin.  

Many prefer to trade Bitcoin contracts for Difference.  It's a quick and fun way for investors to guess what the market will do.  

Institutional adoption of cryptocurrencies  

Mainstream businesses across industries are taking an interest in blockchains and cryptocurrencies.  AMC, for example, announced plans to accept bitcoin payments by the end of 2022.  Square and PayPal are betting on cryptocurrencies and allowing users to buy from these platforms.  

On top of that, Tesla holds billions of dollars in crypto assets.  However, it cannot decide whether to accept bitcoin payments.  Experts say this is likely to continue across all industries.  

A lot of companies are now paying attention, and that's driving the growth of the crypto industry.  

Global companies could start adopting bitcoin in 2022.  If Amazon buys it and accepts bitcoin payments, for example, it could create a ripple effect that makes others consider it, thus increasing the portfolio's credibility.  

In fact, Amazon recently sparked rumors that it might post a job for the head of blockchain and digital currency products.  Walmart also wants to hire people to oversee its blockchain strategy.  

What does this mean for investors?  It's not clear.  But if people are comfortable paying for goods with cryptocurrency, and it's accessible, that could affect the price of Bitcoin.  If you're buying Bitcoin to preserve its value over the long term, it's better to have a practical use for it to increase demand and value.