Popping The Bubble: The State Of Cryptocurrency In 2022
On New Year's Day in Jan 2022, the price of Bitcoin was somewhere near the $47,000-$48,000 range. Investors were still enthusiastic about the price of Bitcoin reaching $50,000 in 2022. There have been surges and drops throughout the year. Investors are still confused about whether the prices of Bitcoin or other Cryptocurrencies will rise or fall. People are still positive about the profitability of Cryptos, but the excitement around it is growing less and less. The enthusiasm is amiss.
But as you wade into deeper waters, you get to see the bottom of the Cryptocurrency iceberg. You realise one sure-shot possibility about this melting demon – the whole collapse is about to happen. So, before understanding the conclusion of this digital currency, let’s revise the beginning.
A brief history of cryptocurrency
A rough form of Cryptocurrency was introduced in 1983 to a cryptographer from the USA, David Chaum. He received payment in something anonymous called e-cash. In 1995, he introduced Digicash, his version of a cryptocurrency. Digicash had user software that allowed an untraceable transaction which was anonymous as well.
After becoming aware of this possibility, various papers were published by international government agencies. Even leading colleges and universities like MIT researched the possibility of digital money's existence and its future usage.
Some pieces of content popped in here and there about digital money, but nothing materialized. The whole discussion around crypto-cash began to die out. The glowing embers slowly started to subside.
Until one day
In 2009, the names Satoshi Nakamoto and Bitcoin started doing the rounds. Bitcoin was an anonymous form of digital cash, much like its anonymous user. People did not believe in the existence of either. But these names began to appear on every cover of tech and finance periodicals. Suddenly all the tech companies, some in Silicon Valley, started to accept Bitcoin as payment.
Slowly it became the talk of the town until it was everywhere. Suddenly after 2017, bitcoin saw the biggest surge when it breached 2000 USD. It rose to $19,000 by the end of the year. It made many millionaires out of nobody. Even Elon Musk, the owner of Tesla, gained out from it. No wonder he is a fan of it till today.
However, there was a crash in the price levels of bitcoin the next year, and things went downhill. People speculated whether Bitcoin was even legit or not. Investors like George Soros called it a bubble.
Since then, in 2018, Bitcoin has climbed a little and then breached new records, and then it tumbled. As of now, it is near the $30000 range. The highest level achieved was around $67,000.
Countries like El Salvador and Portugal even recognised Bitcoin. But China clamped down on all the Bitcoin transactions in the country, and as a result, things have been looking a bit glum for Bitcoin and other cryptocurrencies.
However, the rise and fall of Bitcoin gave birth to other popular cryptocurrencies like Litecoin, Dogecoin, and similar cryptocurrencies. Cryptocurrencies were made popular by Bitcoin and as expectations of Bitcoin getting a substantial rise begin to fade into oblivion, so does the hullabaloo around cryptocurrencies.
What does 2022 hold in store for Cryptocurrencies?
It is a mixed bag
Leaving behind the story of Bitcoin, the future is not all bleak for Cryptocurrencies. There has been a lot of change around cashless systems. Due to Covid-19, cryptocurrencies and digital transactions increased to an all-time high. Blockchain technology has become so popular that it has changed the way organizations function in 2022.
But cryptocurrency has an unsure future. Young investors and millennials will keep searching for newer forms of cryptocurrency. Even after such a downfall, it gives freedom and excitement to the newer breed of investors who love to live life with the risks involved.
However, the older investors, who have always been cautious with their investments, will always feel that cryptocurrency is nothing but a Ponzi scheme. They are used to those conventional forms of investment, and they will continue to be like that.
What does this mean for Cryptocurrency?
Cryptocurrency will always remain in this Charybdis and Scylla until it gets a major boost or a clampdown from a strong governing authority.
But all this is great for people who want to understand Cryptocurrency and how it works. You could also understand it deeply with the help of a cryptocurrency course or a financial technology course. The best course will be enrolling in a fintech certification program if you wish to study cryptocurrency closely.