Cryptocurrency has been notorious for its volatile nature, and both surprisingly high highs as well as unexpectedly low lows are not uncommon to see in the industry.
The narrative of 2022 says that high inflation rates, climate concerns, and recovering post-COVID economies are taken for what have led to spectacular crashes in the crypto market. Prices have been decreasing quickly, and implosions of the giant crypto exchange, FTX, spell trouble for investors in Bitcoin, Ethereum, and other digital assets.
With so much chaos, it might seem hard to see the future ahead, but the next few years will likely challenge cryptocurrency’s longevity. The more we learn about crypto, the better we can integrate timeless principles into its technology.
While some financial analysts and observers believe that the cryptocurrency fever is over for good, the basic potential for cryptocurrencies as non-governmental money is still on and can help the industry find new ideas and paths forward.
Ideally there would be the room to take a step back and regroup, if needed, to do innovation and progress better the next time around.
A critical mistake many investors and businesses made was rushing into cryptocurrencies early, trying to ride the wave of its hype only to come out with significant losses. Perhaps these issues in the industry will allow for positive changes to keep the market afloat in the coming years.
Here are some ways in which cryptocurrency might fare in 2023:
Wider adoption of cryptocurrency in payment processing in some niches
Roughly 2,300 businesses currently accept cryptocurrency as a valid form of payment, and the numbers are set to increase starting in 2023.
But according to CNBC, around 75% of retailers are planning to accept crypto or stablecoin in their transactions within the next two years.
Some of these businesses expect a rise in cryptocurrency use within their customer base, but some are ready to accept crypto out of plain convenience. Identity clearances and fees for cross-border transfers are starting to get in the way so some have started investing in the technology to accept this relatively novel payment form.
By next year, you might start seeing more crypto payments, from basic necessities to luxury goods.
The rise of utility NFTs
Most are familiar with NFTs or non-fungible tokens as unique digital artworks that were widely popular in 2021, but the art market has since hit a big low.
As non-fungible tokens didn’t really serve much of a practical purpose in an art form, except for vehicles for speculation.
There were the well justified jokes that NFTs finally found their killer app during that brief window when NFT wash trading was used to launder blocked money out of the bankrupt FTX exchange.
But as Forbes writes, new ways of using NFTs in 2023 are expected to come in tokenizing items, data, and ideas in the digital and physical landscapes.
They might be used for contracts and personal metaverse items, serving as “keys” for users to interact with digital assets. Beyond art, these utility NFTs can have more functions and uses that are personalized to each investor.
Persistence of meme coins
Though they were initially created to mock Bitcoin and other cryptocurrencies, meme coins like Dogecoin and Shiba Inu have been widely invested throughout the years.
They’re generally far cheaper than mainstream crypto, usually costing a few cents, so there’s no need to invest much when starting with these.
Though meme coins have been losing some hype, some meme coins that offer more creative ways of earning and trading are set to emerge starting next year.
Tora Inu has gained some interest as it provides more utility than other meme coins. It has a play-to-earn game system where investors can win rewards by battling with other people’s digital pets and earning TORA.
Their approach is also designed to increase value as demand goes up. Other meme coins with more uses may be something to watch out for next year.
Mindfulness methods in trading and investing
With cryptocurrencies in peril, it was fairly clear on crypto twitter how the price fluctuations and the deeply entrenched uncertainty about the state of the market have caused psychological pressure for both amateur and professional traders.
Investors who do not decide to abandon ship completely will probably start to look into how to make smarter decisions and level-headed moves. Awareness for mindful trading in the crypto market may rise as people battle ever-changing prices and values.
Honing and developing a good trading psychology can help with regulating emotions and how they might affect your trading.
In 2023 and beyond, we will probably see a bit more risk-averse behavior as traders got burnt on the crypto platform that was considered the safest and most legitimate of them all.
Obviously part of the solution may be getting used to calculating risks and including the less likely outcomes in that too.
But the FTX saga might in the end move the industry towards its next step: From a fringe club of terminally online enthusiasts to just plain money.