Has 2022 Been a Successful Year For Cryptocurrencies?

The crypto market came into existence with the launch of Bitcoin. Bitcoin and blockchain technology became the foundation that further pushed the development of the crypto market. Today there are over 10,000 different cryptocurrencies, and the number will continue to rise in the future.  

That said, due to the decentralized nature of the crypto market, the crypto space is quite volatile, and it can change in a matter of seconds. The real proof of its volatility was the rise of Bitcoin in 2020 before its ultimate crash, which also impacted the entire crypto market.  

Bitcoin’s price has increased since March, consequently in December 2020 the value increased by over 170% and resulted in a price of over $20,000, and by April 2021, its price skyrocketed to over $60,000. However, that didn’t last long, and in 2022, the price of Bitcoin settled at around $16,726.39. So, needless to say, the entire crypto market experienced a major downturn, but at the same time, cryptocurrencies are more popular than ever before.  

Support by Businesses

One of the major reasons why there was huge media attention around cryptocurrencies was the support by the business sector. A lot of new businesses, including famous brands such as Square PayPal, Venmo, Twitch and others decided to accept crypto payments to connect with another audience of crypto users. 

This was another evidence in a short time since cryptocurrencies entered the mainstream, that there was a real potential for adopting crypto payments as safe payment solutions. For example, many online casinos rapidly accept crypto payments to make it easier for crypto users to wager on their platforms. 

Cryptocurrencies offer enhanced security, faster processing times since it is a decentralized blockchain technology and lower transaction fees. Otherwise, they also accept other regular payment options, so all you need to do is register on a safe online casino NZ, and you can start playing casino games right away.  

Decentralized Crypto Market

Since the crypto market is distributed and based on blockchain technology, there isn’t an inflation-proof method that will stop the oscillating nature of cryptocurrencies. Many factors have a direct impact on the market demand and supply, and in just a couple of minutes, the value of certain cryptocurrencies can change in an instant. For example, a single tweet from your Elon Musk has impacted the demand for Dogecoin and resulted in a higher price of the cryptocurrency, but at the same time, events that now harm the value can also subsequently impact the development of the crypto market. 

For example, the value of TerraUSD dropped significantly, which was responsible for the subsequent crash of another popular token, LUNA. Another crash rocked the crypto world, and that was the liquidation of Three Arrows Capital by a court order in the British Virgin Islands cryptocurrency hedge fund. 

Final Thoughts

In conclusion, due to the distributed blockchain technology and decentralized crypto market, it’s very easy for the entire crypto market to experience cycles of boom and bust. However, that doesn’t mean that the crypto market will stand still. It will certainly enter another bull market phase eventually.