Crypto adoption in 2022 can be described by one word: “disaster".
This article has been published by Cointelegraph in German. Below you find the English version with my answers. The full series of interviews with crypto and blockchain experts have been put together by amazing Veronika Rinecker and her team of Cointelegraph.
Robby Schwertner, also known as "CryptoRobby", is an expert on blockchain and Web3 technologies. He writes regularly on topics related to cryptocurrencies, Web3 and blockchain. Schwertner also advises companies and NGOs on the use of blockchain technology and is a frequent speaker at international conferences, for example at the British Parliament, OECD, WEF-Davos and TedX Talks.
Below find my comments and views on crypto adoption and an outlook to the crypto year 2023:
What events in 2022 were important for crypto adoption?
Crypto adoption in 2022 can be described by one word: "disaster". The crash of Blockchain Terra (LUNA) initiated the series of negative headlines in the crypto market that led to sharp price drops of Bitcoin & Co. Numerous crypto exchanges such as Coinbase, Kraken and Bitpanda laid off massive amounts of staff in order to save costs and adjust to the difficult market environment. In addition, the crypto market was burdened by the war in Ukraine and the coronavirus situation in China. The bankruptcy of the crypto exchange FTX was the latest piece of bad news that shook the market and made many crypto disciples aware of the volatility of digital currencies. The central banks' determined fight against inflation hurt Bitcoin in particular. This is also a bright spot, as Bitcoin has thus curiously proven to be digital gold and inflation protection, and is increasingly perceived as a safe haven in the event of fiat money devaluation.
An outlook on the crypto year 2023
Increasing mainstream adoption: as the technology behind blockchain and cryptocurrencies becomes more mature, it is likely that we will see increasing adoption by established businesses and consumers, despite any setbacks. This will include the adoption of cryptocurrencies as a means of payment by larger trading platforms, as well as the use of blockchain technology for supply chain management and other business processes.
Regulatory clarity: Many countries are developing regulations for the blockchain and cryptocurrency space. In 2023, this clarity will help build confidence in the industry and encourage further adoption.
Growth of decentralised finance (DeFi): The DeFi sector, which refers to decentralised financial applications based on blockchain technology, has seen significant growth in recent years, but has also experienced sharp setbacks, for example around the crash of Terra (LUNA). In 2023, this trend is likely to continue as more DeFi platforms and products are developed and launched.
Adoption of Web3: Web3 technologies such as decentralised applications (dApps) and decentralised storage solutions are likely to see increased adoption in 2023. As the technology matures and more people realise the benefits of decentralisation, more dApps and decentralised services may be developed and used.
Innovation: The blockchain and cryptocurrency industry is known for its high pace of innovation, and this is likely to continue in 2023. New technologies and applications are likely to emerge and it is important to keep an eye on these developments to keep up with the latest trends in the industry. Venture capitalists and token funds, for example Smape, are increasingly investing in Web3 startups and tokens from innovative blockchain ventures.
However, the crypto market will not recover in 2023. On the contrary, further setbacks and crashes are inevitable. Bitcoin can fall to 14,000 or even 10,000 euros. The bottom could be reached in 2023. I then expect a recovery phase for 2024, when the market shakeout is complete and new applications for Web3 and cryptocurrencies emerge.