As 2022 comes to a close, we just want to say, wow, what a year!
2022 witnessed many popular cryptocurrencies and altcoins plummet. And although cryptocurrencies are notorious for their volatility the introductions of layoffs, bankruptcies and even imprisonment left investors and major market players with their heads spinning. Considering that we are also dealing in a space with fairly new and unregulated digital assets that have received a reasonable amount of criticism concerning both feasibility and reliability as we look towards the future, it makes sense for sentiment to fall as the market drops. Combining this with the FTX fiasco FUD (fear, uncertainty and doubt) has skyrocketed.
The crashes and misconduct witnessed in 2022 may push the IRS to offer more specific crypto guidance and regulatory clarity but even with all things considered, crypto is not dead, not even close. Let’s take a few minutes to dispel the FUD. Yes, it is true, 2022 saw many cryptocurrencies fall from the peaks of 2021. However, it is still important to consider that the current cryptocurrency market valuation, currently around $1.5 trillion, is still significantly higher than it has been in previous bear markets (take a look at 2018 for example). Also, let’s consider the fact that many blockchain and crypto developments are still taking place as well as the growing interest in NFT’s and the metaverse. Looking towards the future, it seems crypto’s adoption will increase, not dissipate!
In fact, crypto is only considered to be dying when looking at recent price performance. Considering the increase in technological advancement, NFT’s, the Metaverse and the next evolution of the internet there is a very small chance for crypto or blockchain to disappear completely. Blockchain technology, the emerging tech that serves as a stimulant for both crypto investments and adoption, is applauded and regarded as ‘disruptive technology’. Not only that, but blockchain technology has also gained significant traction amongst prominent companies such Blackrock and Google. Another important factor affecting the crypto market is the rising popularity of the metaverse, defined as ‘a virtual-reality space in which users can interact with a computer-generated environment and other users’. This virtual reality we are referring to requires the use of blockchain technology as well as NFT’s and various cryptocurrencies. The use of cryptocurrencies as a form of payments in the metaverse serves as a bridge between the two.
Recent news even shows that companies are starting to tap on the metaverse’s potential as well. Companies such as Epic Games, Nike, Microsoft and Meta are actively looking at business strategies to help build out their digital realities. We are in a time of innovation, a time where people are hunkering down to focus on new digital products, services and solutions.
Crypto is not dead! Not only taking into consideration the reasons stated above, but also considering the rising popularity of institutional interest in this space. Cryptocurrencies are here to stay!