Despite the gloomy cryptocurrency market, blockchain-based technology, including the internet of things and the metaverse, is set to add trillions of dollars to the global economy by 2030.
The previous year was difficult everywhere. Financial markets experienced a sharp decline, having an impact on millions, if not billions, of individuals around the world. Rise in inflation. It has likely been the worst year for cryptocurrencies since the launch of Bitcoin. Poor projects and dishonest characters have dominated headlines in what has felt more like a crypto winter than an ice age, as seen this week in stories about Terra, FTX, Celsius, Voyager, Hodlnaut, and Nexo.
The purge might continue in 2023 with initiatives like Tezos, Lisk, and EOS that neither innovate nor develop new technologies. It’s often said that 90% of cryptocurrency projects fail, among other reasons being that they don’t solve anything.
The suspicious individuals severely undermined user confidence by excessively violating transparency and decentralization. Big Tech kept abusing user data and privacy in the Web2 industry, which caused the Federal Trade Commissioner to look into Amazon, Google, Facebook, and Apple’s user data management practises more thoroughly.
Even while it may sound harsh, many crypto enthusiasts have hopefully now realized the importance of the phrase “not your keys, not your crypto.”
Instead of developers or builders, the collapse of significant centralized crypto companies has dominated the blockchain industry.
In light of the frauds and scams, proof of reserves (POR) emerged as a crucial topic in 2022. PoR employs cryptographic assurances, public crypto-wallet ownership validation, and third-party auditing to demonstrate that a centralised platform has sufficient assets to match user assets.
Over $2 trillion in market capitalization was lost due to the collapse of the Bitcoin market, and many digital assets saw losses of 90% or more. Guess what, though? By the end of September, American households had lost $9 trillion in worth due to stock market losses.
But everything is not lost
Despite the instability and failure of a number of cryptocurrency companies, the risk-adjusted return of the sector actually outperformed both U.S. bonds and global stock indexes in 2022.
The blockchain industry is currently set to grow further. By 2030, PwC predicts that just projects related to the metaverse would be worth $1.5 trillion.
It makes sense to continue to be positive about cryptocurrencies. A new historical breaking of over 4.1 million wallet addresses with a value of at least 0.1 BTC was reached on December 7, which was a substantial increase from the previous day. On November 28, there were 800,000 addresses holding 1 to 10 bitcoins, which is also an ATH.
Despite the issues that contributed to a significant slowdown this year, decentralized finance (DeFi) is on the rise. DeFi users are multiplying daily all over the world. At the peak of the cryptocurrency market in November 2021, the entire value locked in DeFi was close to $180 billion. However, by 2030, we anticipate a recovery of $232 billion.
While GameFi also suffered a setback and fell to $8 billion, reliable data indicates that it will recover to $50 billion by 2025 — but some people think it might collapse in 2023. The machine economy, or decentralized Internet of Things, is one of the most promising blockchain sectors and could have a market value of $5.5 trillion to $12.6 trillion by the beginning of the next decade.
Blockchain, or more particularly, smart devices connected to smart contracts, such as decentralized wireless projects, will find greater usage starting in 2023 as individuals become more interested in controlling and profiting from their data.
Then in 2023
The blockchain and cryptocurrency industries have persevered through four crypto winters, proving their resilience. The need for rules to promote trust among those cryptocurrency and blockchain initiatives that continue to operate dishonestly will become more important in 2023, as will interest in greater transparency.
By working with entrepreneurs and reputable blockchain projects to advance the bitcoin industry, bad actors will continue to be swiped away. The majority of the power was previously controlled by big cryptocurrency companies, but in 2023, innovative developers will rise to the fore and produce the next wave of mainstream applications.