A Unique Perspective; 2022 wasn’t all bad for the Crypto World
Be greedy when others are scared, be scared when others are greedy. Those are the famous words of seasoned investor Warren Buffett. Crowned “The Oracle of Omaha” due to his immense success as an investor, Buffett’s words came as advise on navigating stock markets.
Buffett’s argument was that investors should not only be obsessed with the stocks of companies doing well when buying shares. Rather, investors should always take the time to scout for special opportunities caused by crisis and then build on those opportunities to succeed.
Winter has never been the end of it all
The same applies to the world of crypto. We all know 2022 hosted one of the coldest crypto winters ever. As with real-life winters, this crypto winter has been marked with limited growth of major cryptocurrencies, cyber hacks, and even the ultimate death and collapse of major crypto companies.
But is earth a terrible home because it occasionally has winters? No. We still love mother earth and want to leave her a better place than we found her. In the same way, 2022 might have been unfriendly for the crypto world, but it was definitely not an apocalypse.
This is because there were so many positive events that happened in the crypto space in 2022.
Below are some of those;
Positive developments and events that marked Crypto’s 2022
a) The amount of people using cryptocurrencies for payments and as a tradable asset increased and crypto adoption soared worldwide including in Latin America, Asia, and the Middle East.
b) More financial institutions and established business brands have extended their operations into the cryptocurrency space by not only allowing crypto payments but also partnering with other crypto-based entities.
c) Crypto came in handy as a way to provide aid for the Ukrainian people when Russia invaded Ukraine
d) Significant progress was made in defining positive regulations that will guide the cryptocurrency industry in both the United States and across Europe
e) An important step towards making cryptocurrencies more environment-friendly was made when Ethereum successfully switched to a proof-of-stake mechanism, reducing Ethereum’s
energy consumption by up to 99.99%.
And let’s not forget the biggest lesson of the year
One instance in 2022 from which crypto diehards will definitely learn a profound lesson has to be Bankman-Fried’s tribulations at FTX. (By the way, Bankman-Fried pled not guilty when he appeared in court on Tuesday, 3 rd January).
Henceforth, investors will be more careful with crypto companies which have close ties with other companies. They will ask questions and demand full transparency and as a result, less crypto leaders will have the audacity to misuse and divert investor funds to other companies.
2022 has set the stage for a more resilient crypto industry
So yes, 2022 might have been an exceedingly challenging year. But one thing we can be sure of is that things will never be the same again. The crypto industry will be able to deal with challenges more effectively.
Investors will not be fooled easily. They will be very careful when choosing companies to invest in. Eventually, only honest and ethical crypto companies will flourish. And you know what that would mean?
We will be miles closer to a more stable and profitable crypto industry in which people will gain more and lose less! So don’t let the negativity overwhelm you, there is a bright ray of light that is shining right through the drama. Crypto shall rise, and rise impeccably.