• Thu. Jul 25th, 2024

Here’s What is Happening in The Cryptocurrency Space Right Now

With the current issues within the cryptocurrency space, many people wonder if this is the beginning of the end. They think the current price malaise is a symptom of the web3 industry’s implosion.

Little wonder why the mainstream media portrays this and more. Historically, this has happened before on a much smaller scale. In terms of market capitalization and industry liquidity. The reason the price adjustments receive mainstream attention is because of the exponential rise of the cryptocurrency and allied technology industry.

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There are a few pointers on what’s going on under the hood. Here are a few of them.

2022 is The Year of Cryptocurrency Regulation And Compliance

Since the onset of the COVID-19 pandemic in 2020 and last year, humanity started a global conversation on web3 technologies. It had to do with the role they play in humanity’s activities. Everyone wants to understand the complex yet simple industry that has taken the world by storm.

As the fastest-growing digital asset class in human history, cryptocurrencies are changing everyday lives. So much so that the state actors with something up their sleeves have banned industry activities. They try to keep control over the populations within their borders.

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The word on the street is that President Joe Biden will make an executive order introducing the US Government’s stance on issues affecting web3 technologies. With the recent bans and global geopolitics, the industry is facing uncertainties. It has led to much of the decline in the value of digital assets because everyone isn’t sure of what next will happen.

As sure as rain, the United States won’t throw away the baby with the bathwater. 2022 will be the year of sweeping regulations and compliance. These shall classify web3 assets as highly speculative assets.

And they have higher levels of risk than most.

It’s not a bad thing for the space. But a good thing, as the US financial sector, will warm to this new asset class. It shall pave the way for all kinds of innovation. New financial instruments shall rule the space considering the influx of the wizards that rule the world’s financial universe. With institutional participation governed by rules, the web3 space will grow massively. Unheard values of cryptocurrency assets will show forth as financial engineers invent new means of interaction with the industry.

Emerging Technologies Shall Merge With the Web3 Space

Humanity is currently in an age where technology has taken over everything. Technology buoyed the world during the height of the movement restrictions. It has kept the world running through the emergence of the many variants that have emerged since then.

Technologies such as metaverse ecosystems, Internet of Things (IoT), Internet of Behavior (IoB), Virtual Reality (VR), Augmented Reality (AR), and many other technologies are merging with the web3 space. One reason is most of these technologies need Distributed Ledger Technologies (DLTs), cryptocurrencies, Non-Fungible Tokens, and many other segments of the industry to create virtual economies.

These economies are the next level of the internet’s evolution as the knowledge economy takes on new meaning with their rise. The best representation of how these technologies create value gets achieved through cryptocurrencies and their allied technologies. The technologies shall merge with the web3 space as their emergence provides another level of economic participation for users.

Related: 7 Things Your Boss Expects You to Know About Metaverse

Cryptocurrency Price Levels Are at The Point of Massive Corrections

With cryptocurrency prices reaching 2021 mid-year levels, prices seek a support level for a bull run. The bull run is driven by utility, increased participation, government regulation, and an influx of innovation. The powder keg will explode anytime from now as prices find the support level and everyone gets back to living their lives with the existence of COVID and the global chaos that has ensued since then.

Historically speaking, cryptocurrency prices are known to decline sharply in the first three months of the year. In spring through summer, cryptocurrency prices continue the bull run.

Price levels at this time are setting the stage for a rally. The big guns in the markets understand this, and they aren’t fretting. They are HODLing.

Related: How Many Cryptocurrencies Have Failed In 2021?

HODLers Shall Win in The Cryptocurrency Markets

Let’s face it. Newbies voice most of the despair in the web3 space. They have little or no experience in the wild price swings occurring. The new entrants have no idea how prices work and they have entered in their numbers.

HODLers, on the other hand, have seen similar events before. The current market malaise did not faze them. Because of this, they stick to their guns and know prices will rebound with even greater returns. Newbies think they should hold cryptocurrencies for a year or two.

A typical HODLer, on the other hand, thinks in terms of decades or more. This long-term perspective allows them to plan for the volatility in prices. It shall pay off as the industry explodes and overtakes established markets that have been in existence for far longer.

When prices return above $50,000 and beyond (in spring), market sentiment will return, and the fear of missing out will continue (FOMO).

Bitcoin’s Dominance Will Reduce

As the markets return to some form of normalcy, Bitcoin’s dominance as the world’s largest cryptocurrency by value will reduce. Innovation and the creation of new projects will increase market participation. Project utility will determine this occurrence. New uses for cryptocurrencies and allied technologies shall give impetus to the incoming market rally.

Developers shall flock to the space looking for new ways to express their creativity. It will give rise to another level of the knowledge economy which shall, in turn, shall change human interactions.

Bitcoin will still retain its crown as the king of the hill. Other projects shall prove Satoshi Nakamoto right, as the world will continue to improve on the originally espoused concepts from Bitcoin’s whitepaper.

These new use-cases shall vary from industry to industry while the world will continue to adopt web3 technologies.

Related: Top Seven Reasons Why Bitcoin is Popular Today

The Knowledge Economy Shall Come of Age

Web3 technologies this year will give the participants of the knowledge economy the chance to grow. Digital assets will find expression in just about every industry on earth as the mainstream begins to catch a glimpse of what the future can be.

The industry will help solve many of the problems that plague humanity, giving rise to a new generation of leaders who can lead the charge for a better world.

Issues such as poverty, climate change, transparency in democracy, medicine, and even the arts (NFTs anyone?) will take great leaps forward, giving everyone the chance to better themselves because of the world’s newly found abundance.

As humanity’s challenges create new problems, web3 technologies will provide many ways out. The innovation, clarity, and focus that cryptocurrencies have brought many people will continue.

In the end, we shall all win because of the many benefits that cryptocurrencies and their allied technologies offer.

Viva Satoshi!

Related: Does Ethereum have a Future?


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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.