Nikolaos Akkizidis
LegacyFX
The year 2022 was a dramatic year for cryptocurrencies. This is because the cryptocurrency market came after the financial crisis of 2008 to offer a new alternative financial trustee to transactions by providing financial stability. Yet, in just one year, more than 2 trillion dollars evaporated from the crypto market, essentially shaking what cryptocurrencies were meant to represent: trust and stability in financial transactions.
But the year 2022 could be a turning point in the cryptocurrency market. With the loss of confidence and financial value in a market littered with tombstones of failed cryptocurrency companies and projects, perhaps it's time for cryptocurrency market speculation to give way to responsible cryptocurrency trading. Thus, crypto technology could be able to define the new routes of cryptocurrency transactions on the internet.
The crypto technology and cryptocurrency market are very reminiscent of the dot.com era, showing that, after all, history repeats itself in the same way every time. Maybe because people, regardless of the historical period, ultimately behave every time in the same way, no matter how many years pass. Remember, it took the dot.com bubble first to burst in the early 2000s to hand over the future of the Internet to more resilient companies and sound business models. Perhaps correspondingly, the year 2022 could mark the handing over of crypto technology and blockchain infrastructure into steadier hands.
The truth is that cryptography and blockchain technology for trading and storing digital assets is already at the core of experimentation by significant banks and mature financial services companies worldwide. Significant banks and financial companies know that even if the term Crypto seems like a “bad word” today, the adoption of cryptographic technology and Web3 in financial transactions appears to be in the spotlight. With cyber security and digital transformation, the initial hesitancy shown by the boards of directors of financial companies has been replaced by a focus on cyber security and digital transformation. In the same way, seeing them as necessary tools for their efficient operation, they seem to embrace blockchain technology, Web3 and cryptos today.
Despite the mistakes made, crypto technology and blockchain will remain the protagonists of the global financial world in the coming future. Human history is replete with examples where innovative world-changing technologies were first co-opted for widespread use by those who acted foolishly, greedily, and unprovoked criminally. What is always needed with all innovative breakthrough technologies is a focus on eliminating their harmful consequences. This can happen if we put these technologies in the hands of responsible actors while, at the same time, we must encourage the use of innovative technologies such as cryptos by all market members; however, their use must be done wisely and responsibly.
One of the dominant authorities that can manage the challenge for the responsible use of cryptography is the regulatory authorities. These authorities are called upon to protect the cryptocurrency market through transparent regulations and directives so that the drama of 2022 is avoided in the future. Despite the tremendous pain and enormous damage that financial tools like cryptocurrencies can cause when they are used mainly by the wrong people for the wrong reasons, such as speculation, cryptography, and cryptocurrency blockchains will continue to be integral parts of the modern financial toolbox.
Those who will allow responsible competition in the crypto market within transparent rules and regulations that will respect the principles of the new technology, such as the principle of decentralization, not depending on any central authority, are the ones who will shape the future of crypto technology and cryptocurrencies. They are the ones who will dominate the promising blockchain crypto technology.
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Ripple (XRP) price is starting the new week with a big bang as the top three cryptos all pop in a synchronised move higher. Crypto bulls are using a window of opportunity as the economic calendar this week is rather light, and the Fed policymakers are in their blackout period that precedes the first US Fed rate decision in February.
Dogecoin (DOGE) price is set to get another boost as markets are entering an area with good trading conditions that are granting some upside. Do not expect Dogecoin price to become an outperformer, but rather see it as a granted profitable trade with limited nearby price targets.
Bitcoin price witnessed increased volatility in the last seven days (since January 16) driven by a mix of factors, including trader sentiment, Bitcoin velocity, and various technical indicators, like the MVRV and RPV ratios.
Cardano network suffered a short-lived outage that affected nearly 50% of the listed nodes in its ecosystem. The Ethereum-alternative quickly bounced back from the outage, however, and this fueled a bullish narrative among ADA holders.
Bitcoin (BTC) price shows a clear surge in buying pressure that has shifted the landscape from bearish to bullish, albeit for the short term. Regardless, investors are cautious and torn between discerning what phase of the cycle BTC is in.
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After the drama of 2022, what is the future of cryptocurrencies? – FXStreet
