Cryptocurrency in 2023

So…what is the future of Bitcoin and other cryptocurrencies? Well, it depends on several factors, which most likely will be changing with each passing year. While some people think that 2022 could see an explosion of digital currencies, others believe (and hope) that this period could be more stable than ever. Let's take a look at what to expect from our favorite crypto coin over the next few years.

2021 was very tumultuous for cryptocurrency as many tokens were down in value and there was a huge spike in the prices of all coins. On the surface, it seemed like these “bubbles” were temporary and would end once the market cooled off and trading volumes returned to normal.

However, it seems we are only at the beginning of something new — a multi-year trend. In 2021 alone, we saw major platforms such as Ethereum and Avalanche launch new products. As we move through 2022 and beyond, we can expect to see even more innovative tech coming out. The biggest innovation may not come directly from blockchain technology but rather from a completely decentralized network for financial transactions. This type of system called Central Bank Digital Currency will be used in developing countries to control monetary policies without any form of central bank involvement. Some people believe this may help address the global economic climate — especially in developing nations where corruption and fraud have always plagued governments in the past. It's worth noting in addition to the above that while the United States has been relatively consistent in issuing fiat currency, the developing world isn't far behind its counterparts when it comes to adopting CBDC. We also can expect the Federal Reserve’s rate hikes to continue and possibly accelerate shortly.

By 2025/early 2030, we expect inflation rates to peak in both developed and emerging countries. Of course, it'll depend on how much the Fed raises interest rates and if they make moves toward tightening monetary policy. But based on current trends, we shouldn’t expect it to be anything less than 8%. That's because during this time frame the stock market is expected to recover at least 10% or so from its recent downturn. If not, then the worst of the worst could come. At roughly 2.7%, the price will fall further as investors fear that the US economy is starting to slow and that the Fed might start to increase interest rates faster than previously predicted. Overall, however, I don't believe that the US dollar will drop anytime soon.

For now, though this year may signal a change after two years of turmoil, it won't last forever. Because no crypto asset can replace the impact that traditional finance has had on economic growth. What this means is that crypto assets will require another decade of careful investing before they can rival the success that gold has enjoyed over the past several decades.

Crypto experts are pointing to big changes in consumer behavior as the reason why institutional money flows into cryptocurrencies. One big driver for this shift is increased awareness about the potential negative impacts of centralized systems. People realize the true cost of being unable to use Bitcoin or another traditional payment option — namely fees associated with running the transactional system.

There's also a need for the rapid adoption of alternative forms of payment. These concerns are well on the horizon with a growing number of entrepreneurs entering the space. Most notably Defi applications are creating opportunities for those looking for quick, affordable access to peer-to-peer lending and borrowing. They're just a few examples of how things are getting better — slowly but surely.

So, what does cryptocurrency mean for you? Is there a positive outlook for Bitcoin in 2023? Or should you invest in virtual currencies and keep your eyes peeled for the volatility seen in crypto markets? To answer that last question, let's review what makes Bitcoin great.

Today, I'll show why one day all of us may have too little cash to spend and therefore can't afford to participate in international transactions. Also, for those who want to earn passive income via cryptocurrency, read my full guide here on earning money with bitcoin (or ETH). You can learn more about how I did my research, and how I got here or reach me to get started here: https://www.hollie.co.uk/blog/how-to-get-started-with-blockchain/

It’s clear that despite the ups and downs of the previous eight months, with every decision made in this era, we must be cautious — we can never be certain about what the future holds for humanity. Here's hoping that this article helps you understand and prepare for the uncertainty ahead.

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