In recent months there has been less and less talk of cryptocurrencies, thanks to the sharp collapse that the sector has suffered since the first half of 2022. The fall of the Terra Luna project and the bankruptcy of Silvergate Bank and the very popular FTX exchange, in fact, have only been some of the factors that have disrupted the crypto market, dragging investors into panic and forcing them to sell all their digital possessions in a short time.
At the moment Bitcoin sits on a value of around €27,000, while last year it was traded at a price of just over €40,000. In short, if in the past many users already considered the crypto market to be nothing more than a speculative bubble, the idea that the golden era of these particular assets may be definitively over is now gaining ground.
Just a speculative bubble?
Considering the cryptocurrency market exclusively as a speculative bubble would be an understatement. Without a doubt, these are rather volatile assets, and this characteristic makes them particularly attractive in the eyes of investors. In fact, the price of digital tokens is subject to continuous and considerable fluctuations, so their value must be continuously monitored. In recent years, however, cryptocurrencies have proved to be much more useful than it might seem.
In fact, these allow users to make instant and completely decentralized transfers. This means that they make it possible to migrate money from one part of the world to another without the intermediation of banking or financial institutions. Furthermore, the blockchain has proven to be quite secure and cryptocurrencies have proved to be an excellent tool for escaping inflation.
The whole market is in crisis
If, as we have seen, cryptocurrencies can actually offer a very large number of use cases, it is also true that the sudden collapse suffered by the market is due to a situation of economic crisis in general finance. Both the banking sector, as well as the real estate and energy sectors are facing many difficulties due to the recent geo-political issues. Only very few sectors, such as that of the best online casinos, are experiencing this situation of economic crisis unperturbed.
That is to say that the cryptocurrency market has collapsed more due to the influences of agents and external contingencies than due to a sudden distrust on the part of investors. No doubt in this market cycle there are many, many crypto projects that have failed to survive, but a large part of the blockchain ecosystems are still alive and well, ready to await a new bullrun. Just think of Bitcoin, considered the king of cryptocurrencies, and other very interesting projects such as Ethereum, Cardano, Solana or Ripple.
Anything but set!
Having examined all the factors involved, we must necessarily believe that the cryptocurrency market is undoubtedly destined to remain. Indeed, the historical phase in which we live places us increasingly faced with the need to use alternative payment systems to traditional fiat currencies. However, it will be necessary to understand what the moves of the various world governments will be in an attempt to standardize and regulate this type of asset that is apparently “outbound”. Furthermore, the achievement of the coveted web 3.0 could give digital currencies a prominent position, allowing users to count on instantaneous, decentralized, secure transfers and in the most complete privacy.
