Digital Assets: An Angel or A Devil?!

More than any other technology in recent history, cryptocurrencies have suffered from association fallacies. Scandals like Mt. Gox, Bitconnect, and most recently, Sam Bankman-Fried and FTX have tarnished the entire cryptocurrency sector. When you combine default bias with the instinct to detect sinister patterns, it is evident why the adoption curve for cryptocurrencies is so fragile.

The cryptocurrency was at its all-time high in 2021, and people were finally beginning to see it as a force for good. Unfortunately, one bad actor at this stage is close to undoing more than ten years' worth of Web3 advancement. The domino effect has been real and, in fact, more shocking than anyone's anticipation.

Cryptocurrency has helped those affected by the fiat crisis in Lebanon, Venezuela, and China by giving them a way to purchase the necessities of life, such as food, water, and medical supplies. Crypto is igniting important discussions about empowering women to manage their own financial affairs without male guardians in countries like Afghanistan and banking the unbanked.

With the most giving donors of any investment community, cryptocurrency is one of the donation methods for charities that is expanding the quickest. Decentralized IDs powered by blockchain prevent refugees from losing their entire life savings or being split up from their families. While protecting human rights defenders from retaliation by oppressive regimes and building a fully transparent Bitcoin blockchain that has gone more than ten years without a single record being changed, cryptocurrencies are setting the bar for privacy and transparency.

FTX's downfall was terrifying, and it also brought along the collapse of many of its peers. However, its future potential could be unlimited if cryptocurrency comes out from this messy situation unscathed. Remember, there is always two sides to a coin. Looking at a macro picture and having a strong knowledge in the fundamentals of certain cryptocurrencies could help one make wise investment plans. This is the hard pill that crypto investors will have to swallow – every investment comes with risks and it boils down to only risking what you can afford to lose.

That said, swimming in the world cryptocurrency, but also forex or any form of trading, would often have one swimming with sharks – one wrong move at the wrong place during the wrong time could be fatal.

Whether the 2022 winter in the industry is a blessing or a curse or whether cryptocurrency is an angel and a devil is a debate that is here to stay in 2023.

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