Rise and Fall of Crypto and Its After Effect

Cryptocurrencies have been the talk of the year and everywhere we see now is revolving around “the coins” as experts predict it will become the future of money, changing how monetary value works using a decentralized digital currency and utilizing the use of blockchain technology on financial institutions. Cryptocurrencies are the next “big thing” replacing fiat money as the hype is still up there, namely Bitcoin.

As the professionals called it “cryptocurrencies”, people are more familiar with the name Bitcoin and its trend. Bitcoin has surged more than 300% during the pandemic and this trend also shows that people have been shifting to a new type of investment, instead of the stock market, they’re changing lanes to the crypto market and digital assets. By 2022, experts are calling out that Bitcoin will reach US$100,000 – but the reality begs to differ. Bitcoin and cryptocurrencies are taking quite a fall, almost 30% in the first half of the year. Hence, what will be the fate of Bitcoin in the end 2022?

The price of the largest cryptocurrency, namely Bitcoin, is currently plummeting as it dives below US$19k – the lowest since December 2020. Main factor behind the continuous fall of the crypto market is because of the world macro economy outlook that is not ideal. War issues, recession and inflation, increase in interest rates, that all led to investors losing trust and pulling out their big money, causing a commotion in the crypto market. Bitcoin and other digital assets are moving on a sideways phase with a bearish trend, this could be going until the end of the year.

This continuous trend of declining indicated the presence of crypto winter in sight. According to various sources, the crypto winter is a prolonged period when crypto prices fall, this period also resulted in decreased enthusiasm for the industry. It is the crypto version of a bear market. 

With the winter coming in early, how does this react to the tech industries?

A lot of crypto-related companies are reacting to it – major corporations that have cryptocurrencies on their portfolios such as Tesla, Block, and PayPal are going to be highly affected and may find a setback this year as they have lost millions of dollars amid the crypto winter. For them, this chilling effect results in decreasing activity level, increasing layoffs, cutting off costs, and underperforming relative to the last quarter. But alternatively, for big tech, this might be the opportunity for them to double in R&D and innovate something revolutionary.

How does the Bitcoin plummet affect Blockchain Technology?

Well, it doesn’t. Even with the crash of Bitcoin soon or later, blockchain technology will survive. Since the technology itself is the main core behind these virtual coins, it certainly won’t be a problem even if cryptocurrencies crash because the technology will still remain there. Blockchain technology is the underlying foundation and core behind these cryptocurrencies, the technology created made it possible as a transformative technology. They have more promising paths than only virtual coins and cryptocurrencies, they are the future of the internet.

The technology itself is being viewed as the next internet boom that will take over the world as now many industries have started to implement them for cross-border transactions, dealings with private messaging, reducing fraud and increasing credibility. Blockchain is ideal, faster, and more accurate when delivering information with complete transparency. The future of blockchain technology has made its way into the future of innovations in industries such as supply chain, management, finance, and pharmaceutical. The possibility for growth on blockchain technology is vast and a game-changer as it has the full potential in changing the way industry, commerce, and the global economy works into decentralized business models.

Will there be sunshine after a long cold winter for Bitcoins and cryptocurrencies?

Since Bitcoin and other cryptocurrencies are risk assets with extreme volatility, where prices can go as high and as low in a short period of time like a ticking time bomb. No one could predict when this winter will end and it will see sunlight again… But experts don’t advise you to take a bet and have it “all-in”. It is important to keep it cool and diversify your portfolios to avoid the risk of huge losses. Especially with the big dip in the current crypto market, like the old sayings from Wall Street, you should never catch a falling knife. 

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