Crypto has seen a major crash in recent weeks, leaving investors baffled. But where does it go from here? Well, this is not the first time this has happened. The crypto market is exceptionally volatile. And many true veterans in the space still remember when Bitcoin crashed from $30 to $1 back in 2013.
It is not just the coin market that has seen a drop. NFTs have suffered too. One famous project, CryptoPunks, has seen plummeting prices. And many new NFTs are getting no traction at all. The crypto market is notoriously fragile, with confidence being wafer-thin. And with widespread fraud in regards to rug pulls and exit scams, regular people are weary.
On the other hand, there are many people who are still bullish on blockchain technology. It is seen as the successor to the internet and has been dubbed "Web3". The technology is revolutionary, negating the need for a centralized third party. Bitcoin, for example, does not need a financial institution to act as an intermediary, people pay each other directly.
The crash of $LUNA was monumental, losing 99% of its value in the space of a few days. It was a major story that hit headlines worldwide and was damaging on the whole to the crypto space. Then again, outrageous stories occur all the time in the industry, so within a few weeks, the $LUNA controversy will be totally forgotten.
One major issue in the crypto space is security. Over the years there have been numerous exchanges being hacked or the founder ran off with all the funds. Still today many crypto traders keep their funds on exchanges that have no accountability and are certainly not regulated. In stark contrast, the gambling industry is far more mature, with gaming providers needing a reputable license to operate. Online gaming is like crypto. Its services are available to everyone and all you need is a phone or a computer. Comparison sites help players from Thailand to Japan find the best gambling platforms, advise on payment options, and scour the net for the best bonuses. In addition, each operator is comprehensively reviewed, giving you plenty of choices.
Many argue that the stage of Web3 is where the internet was in the 90s. And in such a short space of time, software ate up every industry. Many analysts believe the same with crypto. Its inclusivity is its biggest USP, as all you need is a phone with the internet and you are good to go. Also, as many crypto's have a limited supply, if the protocol has value, prices will eventually go up. Nevertheless, distinguishing ones that actually do have value is the difficult part.
Smart contract platforms will be a big part of agreements between parties going forward. It is essentially a contract written in computer code and only executed when all terms have been met. The main protocol that offers this solution is Ethereum, which allows new coins to use its blockchain for NFTs and ICOs. However, other platforms are looking to knock ETH off its perch. The three most significant are Solana, Polkadot and Cardano.
Bitcoin was the first currency ever created that was not issued by a government or a monarch. It will always have value because it's fast to send as well as cheap compared to banks. Moreover, it saves a lot of hassle in regards to the bureaucratic elements associated with financial institutions. For these reasons alone, it will never go to $0.
But yes, crypto has a PR problem. Then again, the internet did when it first started. Many associate Bitcoin with criminals or illicit activities and many people view it as a scam, especially among older individuals. Nonetheless, it's easy to disregard something you do not understand, and as crypto gains more popularity, big banks will have to take notice.
The most important thing to remember about crypto is that the price and volume go in cycles, which normally are every 3-4 years. HODL is a legitimate strategy as patience pays off when investing in the right coin. But who knows what will happen this year and whether Bitcoin will always be king?