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December 01, 2022

They Say That Crypto Is Done, But Is It?

Cryptocurrency has garnered a lot of attention across the internet, as well as the world, and more and more people are jumping on the crypto bandwagon every day. From celebrities and big names such as Elon Musk and Kim Kardashian looking into crypto and NFTs, to companies such as AMC and GameStop, crypto has kickstarted an interesting chain of events in recent years.

However, questions about cryptocurrency’s future have come up time and time again, due to the volatile nature of the asset, and more and more people are wondering, is it time to call it a day with crypto? Is crypto coming to the end of its lifespan? Are we simply waiting for something new to replace it? We’re here to discuss and consider all of that, so keep reading to find out!

When did crypto really take off?

One of the big things to consider when looking at the future of crypto is the nature of its origin story and subsequent progress. When did it actually take off? The very first cryptocurrency was Bitcoin, which was invented in 2009, and which is still one of the most popular forms of currency today, and arguably the most valuable as well.

From that point onwards, the blockchain world of cryptocurrency began to expand and grow, and currently there are over 9000 cryptocurrency tokens in existence; that number will surely continue to grow in the years to come.

However, although Bitcoin was invented in 2009, the popularity of crypto really didn’t take off properly until around 2019, which is when it had one of its biggest movements ever.

Elon Musk’s comments about Bitcoin being brilliant definitely is an example of what boosted that economy, creating a global conversation that everyone wanted to be a part of. Facebook (News - Alert) announced the launch of Libra, and the fact that even the biggest of tech companies were getting involved created an even bigger buzz.

Why was crypto so popular?

The stock market has existed for hundreds of years, so why haven’t we seen a flock of people gravitate toward that? Why crypto in particular?

Two of the biggest reasons for crypto thriving the way it has in recent years are its anonymity and volatility. Its ability to suddenly change overnight has actually worked in its favor more often than not, as it has appealed to many users who want to make quick decisions with quick turnaround times, instead of patiently waiting for months on end before deciding whether to sell or hold a stock.

The anonymity aspect of crypto has also gone down really well, and the fact that you didn’t even need an address to sign up for a crypto wallet, let alone any other personal details, has also made it extremely appealing. It was simple, it was quick, and it was efficient.

Are we heading towards a crypto winter?

2019 was definitely a memorable year for cryptocurrency, but what happens after that? Three years later, is it still creating the same amount of buzz as before? Or are we heading towards a ‘crypto winter’?

Crypto winter refers to the stretch of time when cryptocurrencies generally find themselves to be in a period of decline. This can include anything from Bitcoin to NFTs, to even the lesser-known forms of cryptocurrencies, as it’s something that affects cryptocurrencies across the board.


How can we tell we’re in a crypto winter?

One of the thing that sets cryptocurrencies apart from other exchangeable assets is the fact that because crypto is relatively new compared with a much older institution such as the stock market, it also makes it harder to judge whether this is simply a quiet period and crypto will pick up again, or whether a certain cryptocurrency really is on the decline and now would be a good time to sell up and jump ship.

Compared with the stock market, where we can study patterns and trends because of how well-established it is, the same can’t be said of crypto, due to the relatively limited amount of data that we have. Yes, things certainly can change overnight, but there aren’t enough trends just yet to determine whether there’s a pattern emerging, or whether recent events are simply a one-off and never to be repeated.

There are definite steps you can take to overcome a crypto winter, and the main thing is to just be careful and be very mindful of how much you’re investing during this quieter time period. 2018 saw a similar dip, and look how it boomed the following year! It’s very possible the same thing is happening all over again, so it’s a good idea to be cautious and keep a close eye on the market to help inform your decisions.

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