Many investors are starting to pay attention to cryptocurrency. The total market capitalization of all cryptocurrencies combined is edging out major economies like Canada’s. Although some analysts have said it’s unsustainable, many expect cryptocurrency markets to continue growing in value and popularity.
But even if you’re an experienced investor who isn’t interested in cryptocurrency, the 2022 World Cup could be a game-changer for you.
Why? Because the FIFA World Cup is one of the largest sporting events on earth. Many people will turn their attention from soccer (or football) to crypto during this event. It indicates interest and activity will spike around cryptocurrency. It will lead many people to become exposed to it for the first time, and there’s no telling how they’ll react.
If previous trends are a benchmark, we can expect a sudden surge in interest after each match. With 200+ matches taking place over just two months across 12 cities with 12 different teams involved, you can imagine how much new interest there could be! It isn’t something you want to miss!
An Event at a Pro-crypto Country
You may not have heard of the 2022 World Cup host country Qatar. It is a small Middle Eastern country making waves in the cryptocurrency world. You may wonder whether the event can impact cryptocurrency prices or not. It is because Qatar already has cryptocurrency regulations drafted.
Qatar is one of the wealthiest countries on earth due to its natural gas reserves, but recently it has been making headlines for its plans to become a leader in crypto-regulations. The country released a white paper outlining regulations that would make it easier for people to participate in cryptocurrencies like Bitcoin.
This was despite concerns from other countries about security and transparency issues with cryptocurrencies. Smaller countries like Mauritius have also been trying to be global leaders in cryptocurrency regulation, even though they don’t have any claims on natural gas reserves themselves.
Cryptocurrency Friendly Laws
Qatar has a welcoming attitude to cryptocurrencies, as the government doesn’t want to hamper the growth of this digital currency industry.
The country’s apparent interest in blockchain technology and cryptocurrency is very apparent. There are even billboards everywhere driving home this point that it is very welcome in this country. They seem to know what they are doing with cryptocurrencies and blockchain technology, and everything is going well.
Tourism Spike’s Impact on Crypto
With the World Cup coming up, Qatar has decided to ramp up tourism to remain at the top of the pageantry. While this will increase congestion in the city, it will also provide a unique opportunity for cryptocurrencies to further their adoption and influence over the future of currency.
Qatar is a hub for cryptocurrency exchanges, with many companies setting up their shop to facilitate transactions. They have become so popular that they impacted prices due to speculation by those who do not have any actual stake in them.
The 2022 World Cup is due to be played in Qatar and is the site of a colossal infrastructure project that will use thousands of people from across the globe.
While the 2022 World Cup will happen mainly in Qatar’s capital city of Doha, it also has plans for a secondary location near the capital city called Al Wakrah. The second location would ease congestion on the main site by providing a stop-off point where fans can travel and rest before arriving in Doha.
Millions of people will travel there and spend their money, with thousands involved in infrastructure development.
There are no specific details about what kind of technological advancements will accompany this event. It can lead to significant economic growth as cryptocurrency usage increases around Qatar. Interesting to note that salaries get paid using cryptocurrency in some locations around the country.
Impact of Sudden Crypto Influx
In their efforts to build stadiums for the World Cup, there are reports that several construction firms have been paying their employees with cryptocurrency. The workers are then free to do what they want with those payments. However, since cryptocurrencies are limited in supply and thus prone to skyrocket in price when demand increases, many are investing this money in crypto instead of keeping it liquid cash or fiat currency like the dollar.
It is hard not to realize how big of an impact this influx could make on cryptocurrency markets. If only a small percentage of these workers choose to buy into cryptocurrency, there will still be millions more dollars entering our market than would otherwise exist. It will cause prices for all major cryptocurrencies (Bitcoin included) to skyrocket.
Overall, the World Cup will have a huge impact on the cryptocurrency market. Though other events affect Bitcoin, such as the SEC’s rejection of Bitcoin ETFs, nothing has ever come this close to affecting cryptocurrency prices as much as the World Cup.
It is safe to assume that we will see another surge in cryptocurrency prices around June or July of 2022, when more people are aware of cryptocurrency value and investing in them. It is also safe to assume that there will be an influx of new people into the cryptocurrency market because of their interest in soccer and other related sports.
It is also possible that this rising trend can continue throughout 2022. A steady price increase can happen during this period with rising interest from retail investors and more media coverage about Bitcoin. It can lead to another major rally till March 2023, when the next World Cup preparation starts.