Cryptocurrency has been on the rise for many years and can be traced back to 2009 with the release of Bitcoin. The digital currency does not rely on a central authority, such as a bank, and a decentralized system is used when making transactions, cutting out the need for an intermediary. In 2021, Ecuador became the first country to accept Bitcoin as legal tender but how did cryptocurrency fair in 2022?
There is no getting away from the fact the cryptocurrency market struggled in terms of value in 2022. The year was a disappointment for many sectors around the world due to several factors, the crypto space included. The loss in value of cryptocurrencies led to some crypto exchanges and lenders filing for bankruptcy or pausing transactions, including FTX, Genesis, Three Arrows Capital, Alameda Research, Voyager Digital, BlockFi, and Celsius Network. FTX was perhaps the biggest story, and the crypto exchange went from being worth $32 billion to filing for bankruptcy in 2022. What happened to FTX had led to Congress and the SEC investigating the situation. Many insiders are calling what happened to FTX the “Lehman Brothers Moment” for crypto and it will be interesting to see the results from the investigation.
Perhaps the high point for crypto in 2022 was the successful Ethereum merge. Ethereum made the switch to proof-of-stake in 2022 having previously been a proof-of-work mechanism. This is a big move because proof-of-stake does not require the same amount of computer power as proof-of-work and proof-of-stake does not use computer algorithms. That means Ethereum is now based on the number of coins in the possession of the miner. So, under proof-of-stake, transactions or mining using Ethereum are validated using the number of coins the person holds. So, the more coins an individual holds, the more power they have.
2022 saw more online businesses accepting crypto as a form of payment. Despite the losses suffered by many people investing in crypto, it has not stopped people from using crypto to make payments online. One of the leading industries in terms of accepting crypto as a payment method is online gambling. The online gambling world has long been leading the way in terms of accepting new and innovative ways to make payments online, crypto included. There were many casino online brands accepting crypto as a deposit method in 2022 and we expect to see more follow suit in 2023.
Another of the positives to come for crypto in 2022 was the emergence of new web3 brands focusing on NFTs. There are plenty of people who enjoy collecting NFTs in gaming, art, fashion, and other creative communities and some of the companies involved in the selling of NFTs either launched or expanded in 2022. It will be interesting to follow the progress of these companies in the future and they each made a strong contribution to the NFT and crypto world in 2022.
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