A particular economic year 2022
Definitely this year has been quite complicated for the whole crypto environment, that is evident. Starting with the fact that cryptocurrency prices since the beginning of the year have been in steep decline. Prices continue to fall and fall, and do not seem to want to go up, at least not in the short term.
If we add to that the fact of the falls of the Terra Luna project, which started what was a process of even stronger fall in every way. It has even affected the credibility in many people in relation to everything that involves cryptocurrencies in general.
Recently the fall of FTX due to the mismanagement of funds, as we can see a great scam that is being uncovered, and unfortunately continues to threaten the stability of this new financial system.
This is all a process of decline that I believe is not yet over, because as time goes by, other centralized exchanges are being affected by what has just happened. And most probably, according to what we can see, others will continue to close their doors as a consequence of the bankruptcy of FTC and previously Terra luna.
What I see with all this is that it will serve to encourage initiatives by governments to place restrictions on the use of cryptocurrencies, but the problem, as I see it, was not the cryptocurrencies, it was the use made of them by a few agents who, like any other bank, made use of the resources of its users.
The same thing would happen in any centralized bank, where all savers would massively attend to withdraw their money, none would have the possibility to return all the money to each one, which would obviously cause a fall of that sector, in fact, this has already happened in other opportunities...
In particular, I will insist in saying, centralization failed, but not decentralization. The whole blockchain kept going, especially the Bitcoin blockchain. Even Laurence D. Fink himself, director and CEO of the world's largest corporation BlockRock said "despite all the problems that arose after the fall of the FTX exchange, the technology behind Bitcoin "will be very important. " And this referring to the Blockchain.
I think there is still a long way to go, obviously, there is a lot of immaturity in the crypto market, the small capitalization if we compare it with the traditional economy, makes it more sensitive to manipulations, but still, I think it will continue to evolve, and it's good to be here.... Don't you think?
Another solid read @josevas217
This year has been indeed quite insane for crypto space and every other market out there. And it's hard to imagine that 2023 could get any worse.
War that started in Ukraine lost its impact. Inflation is slowing down. FED already increased interest rates to high levels and will have to slow down soon. So it seem to me that all heavy issues we were dealing in 2022 are slowing down greatly.
Next year will be a year of recession and raising unemployement and this is what I would expect. Hard recession and high unemployement should result with FED losing on their fiscal policies, which will benefit financial markets. That's what I expect anyway.
I kind of disagree with that statement.
FTX surely had problems with managing funds, but they failed due to panic bank-run caused by CZ from Binance. Regardless, it caused loads of pain to the market. And yet, bitcoin didn't really drop heavily. I personaly expected that there will be more panic sale. But it seem to me that it is already very hard to scare investors to sell their BTC at current price level. Don't you have similar impression?
That is interesting thought. And I agree that Bitcoin blockchain keep going and decentralization serve well in that case. But decentralization = lack of progress. It is hardly possible to make any sort of change in code. And for that reason most crypto cannot really be decentralized. Because that would mean that they will stop evolving.
Cheers, Piotr
Well, yes, the complicated things have been slowing down, that is a reality, but there are other things like unemployment that continue to increase. I believe that the effects of economic policies are being seen with a certain delay, even months, but it is still impossible to know what is going to happen.
There is no doubt that Binance played an important role in pushing FTX into the abyss, evidently CZ is very good at marketing, he is a smart guy.
And yes, decentralization can slow down many processes, in this case centralization has an advantage in terms of streamlining processes.
Higher unemployement -> more likely that FED will slow down with interest rates hikes. At least that's how I perceive it.
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Superb publication buddy. People still believe in crypto becuse of decentralization and I can say wihout any fear that bitcoin is truly decentralized crypto currency and bitcoin is the reason that people still believes in crypto even after these disasters.
Yes, even with this disaster, and with those that may eventually come, there is much that BTC offers that we won't be able to see in the traditional. Thank you.