Saying that the cryptocurrency industry has a bright future ahead might seem like a stretch considering we’re currently in the middle of one of the coldest crypto winters to date. However, it’s not an overly optimistic statement but rather the direction in which the latest trends are pointing. In a market that has earned a reputation for its volatility and unexpected price swings, it’s important to keep close tabs on all the factors that might influence its trajectory, so trendspotting plays an important role for traders and investors. Unfortunately, identifying industry trends is not as simple as it sounds.
Trading crypto is easy. Predicting what the future has in store, not so much. These days, anyone can buy Ethereum p2p or any other coin for that matter by going on a trusted exchange platform that supports these types of services. But when it comes to deciding what crypto is best to invest in and making forecasts about price evolution, things tend to get much more complicated.
The good news is you don’t have to conduct an in-depth analysis of the market to figure these things out. There are teams of professional analysis and financial experts that employ specific tools and techniques to gain insights into the market and keep the public informed on these matters. The even better news is that recent trends suggest that the industry might be on the path to recovery. But it’s best to let the trends do the talking and provide you with a rundown of the latest forecasts and developments so you can draw your own conclusions.
A series of unfortunate events prompting scrutiny from regulators
If you’ve been following the news, you probably know that crypto’s recent history has been marred by a string of scandals and incidents with serious implications for all stakeholders. The industry was severely affected by these events, not only because of the negative press they brought but also because of the impact they had on the value of digital currencies.
The rising inflation, the bankruptcy of crypto exchange FTX whose founder was charged with criminal fraud, the Terra Luna collapse and other similar happenings have not only accelerated and contributed to the onset of the current crypto winter but also brought to attention a much bigger issue that has been put on hold for too long – the lack and need for crypto regulation.
The cryptocurrency landscape came into prominence as a digital Wild West where the rules that govern conventional assets don’t apply. While the lack of central control and the freedom provided by digital currencies come with a slew of benefits, one can’t overlook the numerous risks and hazards stemming from having a completely underregulated market. It’s this instability and insecurity that chip away at the industry’s credibility and hamper its evolution.
While many countries have already started regulating this emerging asset class, most of the initiatives are in the first stages of development. Besides, the existing regulatory frameworks covering crypto assets still have many gaps and inaccuracies that need to be addressed in order to eliminate confusion and ensure proper applicability. So, it’s possible we’re going to see more interest and government involvement in this respect in the following months.
Crypto and traditional finance – a perfect pairing
When digital currencies were introduced to the public, they were presented as an alternative to fiat money that can circumvent central systems like governments and banks. This has prompted people to believe that crypto and traditional finance are sworn enemies that will compete with each other until one of them gets taken down.
The reality is much less dramatic, as these two areas of finance can complement each other and work in harmony. Although this is quite a polarizing topic and people tend to be split into two distinct camps, there is no need to place one against the other and choose between fiat and crypto. The increased adoption of crypto services by traditional institutions highlights the fact that crypto and conventional finance can coexist and collaborate in the same space.
Financial giants like Visa and Goldman Sachs have already expressed their interest in supporting crypto companies. This goes to show that crypto has come a long way since its obscure beginnings and the big guns are finally taking it seriously. The only thing that’s keeping other companies from jumping on the bandwagon is the still unclear regulatory provisions, but that’s an issue that will likely be solved in the near future.
More cryptos in the retail sector
Digital currencies were designed as a form of payment that can help users conduct everyday transactions quickly and efficiently, without having to involve a third party in the process. However, this goal has proven to be more challenging than expected given the high volatility of crypto assets.
But let’s not forget that crypto assets are still in their infancy and hold a lot of untapped potential. As the market matures, they are expected to gain more ground in the retail sector and become a mainstream payment method. So, while cryptos may not be on par with fiat money just yet, they are paving the path to widespread adoption as we speak.
The fact that a growing number of businesses and organizations have started integrating digital currencies into their payment infrastructure despite the risk they pose proves that crypto is moving in the right direction. As is the case with institutional acceptance, retailers are also waiting for authorities to improve regulatory systems before taking the leap and introducing crypto payment functionalities.
The cryptocurrency industry may be in a dark place at the moment, but even in these trying times things are still moving forward. These budding trends provide hope for traders, investors and crypto enthusiasts at large, indicating that the bearish market could finally come to an end and give way to the next bull run. So, despite a lacklustre start to the year, 2023 might have some pleasant surprises in store after all.