Bitcoin Outlook for 2023 and Lessons Learned from 2022
We may be doubtful about many things in today’s modern world. However, there is one thing that we are definitely not in doubt about. The fact that 2022 has simply been one of the most eventful years in recent human history!
That is especially so in the world of crypto and for all the good people that live in it. Some of the noteworthy events in the 2022 crypto scene include;
I) Hacking of crypto-based entities resulting in losses of millions of dollars-worth of crypto
II) The realization that stablecoins are not wholly immune to volatility
III) Bearish markets with frequent downturns that have seriously undermined investor confidence
IV) The collapse of one of the most renown crypto exchanges due to fraudulent dealings
V) Many other problems we would do well not to get into lest we get depressed
Put succinctly, crypto has seen it all in 2022. But are things as grim as we are painting them to be? Is the cryptocurrency – and especially Bitcoin landscape – so hopelessly lost? Our answer may or may not be surprising, but it is a resounding NO.
Here’s why we maintain that in 2023, the crypto ecosystem is going to enjoy a lot more positive growth and stability. Like every other emerging or developing field, there are usually several challenges experienced in the formative years.
The challenges during 2022’s crypto winter are nothing but growing pains comparable to those the electric vehicle sector is facing. A couple of things might not be perfect right now. However, it is through those challenges that stakeholders will learn better ways of handling matters.
For instance, one notable problem in the 2022 edition of crypto is that there has been limited decentralization in the true meaning of the word. Many investors have been pooling their crypto holdings in centralized entities including crypto exchanges like FTX.
A Basis for Future Innovation
This centralization of resources and power has in turn bred lack of transparency and accountability. Consequently, that has led to leaders of such entities to take advantage and pursue their own selfish goals at the expense of investors (Think of what SBF allegedly did).
Another major challenge involving crypto has been rampant hacks. Data shows that the biggest crypto theft since the inception of crypto occurred in 2022 when hackers made away with $625 million. Such astonishing thefts have highlighted security vulnerabilities in crypto entities.
The issues mentioned above may be disheartening but upon taking a closer look, you’ll realize they are an integral part of the growth and advancement of the crypto industry. That is to say, these challenges will provide a basis for crypto innovation and improvements going forward.
Bitcoin Outlook for 2023
The following are some of the changes and developments in Bitcoin and crypto that will be directly inspired by 2022 events in the realm of crypto;
I) More investors will go for quality crypto investments in the form of established cryptocurrencies like Bitcoin as their speculative appetites taper off a bit
II) Stakeholders in the crypto space will gravitate more towards full decentralization in matters of crypto finance as opposed to relying on centralized entities to avoid issues like the downfall of crypto exchange FTX
III) There will be a shift in attitude towards efforts to regulate the crypto industry as more people will be in favor of regulation and statutory compliance
IV) Bitcoin will round off 2022 and begin 2023 at a price approximately ranging between $20,000 to $30,000
V) Cryptocurrencies like Bitcoin will increasingly share the limelight with Central Bank Digital Currencies (CBDCs) which several governments all over the world are trying to develop