The start of 2022 came for many people who owned and traded cryptocurrencies worldwide. Not only did crypto dip, but it also went dipper than a lot of traders have speculated. Initially, people were buying the dip, but the dip kept getting dipper. The heights that cryptocurrency attained the previous year are responsible for many people showing continuous interest in it.
At the beginning of the year, the crypto market’s capitalization was about 2.25 Trillion. Then Bitcoin, a significant contributor to the rise and fall of the crypto market was trading for about $47,833 per coin. At the time of writing this piece, the price was $40,296.40. About a month ago, Bitcoin traded for $34,875 per coin, resulting in a 30 percent decline. In the words of a CFP of the Beckett Collective, Theresa Morrison, “it is a nascent industry, and as a result, it’s highly volatile.”
History of Cryptocurrencies
To a layman, cryptocurrencies are just a digital form of money. In the real sense, cryptocurrencies are decentralized digital currencies beyond the government’s control.
In some countries, governments have recognized cryptocurrencies as legal. Let’s go down memory lane by reviewing how cryptocurrency came to exist. The cryptocurrency was initially called cyber currency at its inception in the 1980s, and David Chaum, an American cryptographer, established what was referred to as digital cash.
This digital cash made use of cryptography to validate transactions. Until the 1990s was, the development of genuinely decentralized currency was possible; cryptographic protocol and software made the actualization possible.
The Launch of Bitcoin
Bitcoin is not only the most popular cryptocurrency of all cryptos; it is also the first decentralized form of money. Little wonder why the rise and fall of most cryptos are dependent on it. In 2009, Satoshi Nakamoto created Bitcoin. Since then, It has become instrumental in making payments for goods and services worldwide.
Bitcoin has become so acceptable that even an online casino can bet. You can visit casinotypist page to see which casinos are available. If you require information about the best casinos online and those that accept Bitcoin and other cryptos, London Conference is the place to visit.
The unique thing about it is that transactions can be done without the watchful eyes of the government and financial agencies. Bitcoin has been a legal tender worldwide, and it can be used to pay for goods and services across borders. January 12, 2009, is a very significant date in the history of Bitcoin; that was the day Nakamoto and Hal Finney did the first Bitcoin transaction.
The Development of the Crypto Market
In the early part of 2010, the only cryptocurrency available in the market was Bitcoin. Its worth as of then was just a few cents. Bitcoin wasn’t worth much; that was why someone ordered 2 Papa John’s pizzas with just 10,000 Bitcoins; it’s laughable, isn’t it? You can only imagine that the transaction would be worth millions of dollars now.
In subsequent years other cryptos entered the market, and they rose and fell with Bitcoin. During the later part of 2017, cryptocurrency started to go through tremendous growth like never experienced before.
In the same year, 2017, many cryptocurrency scams surfaced around the world. These scams and shams targeted those looking to make a quick fortune from crypto and crypto investors. You can easily predict that this year will also see many crypto scams happen.
In some quarters, it is believed that the rise of Bitcoin results from other decentralized exchange means coinbase. As a result, people did not need special skills to understand the crypto market. The highest value that Bitcoin has attained since its laugh is an all-time high of $68,000, and this feat was achieved on November 10, 2021.
Why Is Crypto Where It Is?
There are a lot of questions about how the crypto market came to be where it currently is. This year has seen the crypto market bleed. The cryptocurrency market has experienced about a 50 percent loss during the last few months. This could be attributed to some factors, the happenings that led to the fall of crypto. Inflation and the Pandemic that bedeviled the world is responsible for the fall. People lost their jobs, and there was not enough money in circulation, hence the need for the stimulus package by the government.
The hike in federal banks’ interest rates is also responsible for taking huge loans. These loans need to be paid, thereby harming the market. Also, the recent hostilities between Ukraine and Russia had their Part to play in compounding the issue.
The vulnerability of crypto to be used for illegal activities and money laundering has caused the government to crack down on some crypto companies like Binance. In June 2021, the government of China ordered that banks should not facilitate crypto transactions, which resulted from the clampdown on mining operations of crypto. The UK declared that it had uncovered a money laundering business that used cryptocurrencies to carry out its crime.
In July 2021, a $180million cryptocurrency business was confiscated in the UK. Elon Musk also became a huge deciding Factor in the world of crypto after his presence at a large cryptocurrency conference gave the decentralized currency a big boost after the value of Bitcoin was reduced to half in June.
What Are the Experts Saying About the Future of Cryptocurrency?
As a result of the possibility of becoming a millionaire in a twinkle of an eye with crypto, everybody feels he has a perfect knowledge of the market. To get certain information on the cryptocurrency market, we must examine the opinion of some experts when it comes to the crypto market.
Future of Bitcoin
Kiana Danial, who wrote “Cryptocurrency Investing for Dummies,” has said that her expectation for crypto in the short term is volatility and growth on a long-term basis. Many experts believe that the value of one Bitcoin can go as high as 100,000; it is only a question of when, and the fluctuation of the decentralized currency makes it difficult to say when.
Much of what happens in the crypto world depends on Bitcoin; when Bitcoin sneezes, other coins shiver. As much as experts can give their verdicts and predictions of crypto, enough data is not available to ascertain how it will eventually turn out. Fredrick Stanfield of Lifewater Wealth Management, located in Atlanta, posed a question recently by asking that if you get up one morning and you discover that the powers that be have banned crypto will you be ok?
Effects of Institutional Adoption of Crypto
Some institutions are already accepting cryptocurrency as a legal tender, and more will follow in the future. Some people do not make any sense of the idea, but it might turn out to be a smart move in the long run. The more institutions adopt crypto to pay for goods and services, the more the value will likely increase. In that case, storing up crypto will not be a wise move.
AMC has announced that it will be able to accept payments in crypto by the end of the year. Tesla, on its own, continues to go back and forth on its decision, though it has billions in crypto assets. PayPal has also keyed into the market; hence their user can buy crypto on the platform.
The End of the US Economy Bull Run
According to Forbes, crypto interests will soar. As nothing lasts forever in the economy, a bear market is around the corner. The only question on the minds of many is “when.” Blockchain will be the next thing to look towards when this eventually happens. Retaining its value will not be a problem for crypto in an unfortunate economic outcome. All thanks to the fact that it is not attached to anything.
The nature of cryptocurrency is highly unpredictable as many factors directly or indirectly affect the market. One thing is sure the crypto market is growing, and it will continue to grow. It was recently announced that Binance would be taking a $200 million stake in Forbes. Binance came forward to clear the air that the editorial of the reliable outfit will not be tampered with as their independence is sacrosanct.
Binance, the largest crypto trading company, is also looking forward to investing in other companies to boost the adoption of blockchain. With this, we can predict that there will be a bull run, and when it happens will depend on many factors, some of them beyond the control of the crypto market.