- Marred with hacks, scams and crashes, there are better years than 2022 for the crypto ecosystem
- Bitcoin has taken a heavy hit, and its value has dropped below the $17k mark.
- Bitcoin has had a significant loss before. Fortunately, the most noticeable attribute this digital asset has is its ability to regain value
Over the years, the crypto Industry has had its fair share of ups and downs. Along its journey, its applicability has allowed the emergence of concepts such as stablecoins and CBDCs. The world received the notion of digital assets with mixed reactions; some claimed it was the next evolution of digital money, while others merely viewed it as a hoax. Crypto traders steadily grew by the day, all gearing to get a piece of the pioneer cryptocurrency, Bitcoin. No tech enthusiasm of business guru wanted to leave behind the chance to make a fortune due to the unstable volatility of cryptocurrency. However, there were various red flags, such as the crypto winter and a crypto crash.
As much as it threatened the possibility of completely failing, it also promised the chance of making a significant profit. Unfortunately, as human nature dictates, the masses focus on the benefits only. Unfortunately, the concept of a crypto winter soon dawned on the crypto ecosystem. This eventually culled out the serious crypto traders from those trying to make quick cash. Unfortunate;y 2022 has seen the worst of it so far as Bitcoin takes a significant nose dive.
Bitcoin’s influence on the crypto ecosystem
Over the years since its debut, Bitcoin has been the pioneer of cryptocurrency. The concept behind its mechanism elaborated on the use of blockchain and digital assets. Many aspects of Web3 owe Bitcoin a lot, especially in inspiring various other crypto exchange platforms to rise.
Through its mechanism and use of blockchain technology, Ethereum emerged, taking a different approach to web3. Rather than say focusing on being purely a digital asset just like it, instead decided to inspire other like-minded people can build their second or third-generation cryptocurrency. From there, the rest is history; now, after over a decade, there are at least 10,000 altcoins—each function in a shared blockchain network r in its dedicated blockchain network.
It is no secret that the amount of influence Bitcoin has in value over the other altcoins is significant. Any slight decline in Bitcoins value will cause a ripple effect throughout the entire crypto ecosystem. A fact elaborated vividly in 2022. Crypto winter has been a fundamental concept throughout the years, although Bitcoin has retained its influence and position as the top cryptocurrency globally.
Bitcoin falls belw the $17k mark
Marred with hacks, scams and crashes, there are better years than 2022 for the crypto ecosystem. Nothing appeared to phase Bitcoin completely, from the WinterMute hack to the Terra meltdown. This dream was quickly short-lived as the recent crypto crash has significantly impacted the entire crypto ecosystem. The market ended up slipping further into the abyss of oblivion. Bitcoin has taken a heavy hit, and its value has dropped below the $17k mark.
Keep in mind that this compares to its value at the beginning of the year, roughly $47 thousand. This equated to more than a 50% drop in value.
To depict the damage caused by the crypto crash is that despite Bitcoin’s massive drop, it remains the dominant digital asset in the entire crypto ecosystem. Several crypto exchange platforms were not lucky and had to file for bankruptcy. At the time of writing, Bitcoin is valued at $16,798.
Also, Read about Debunking Bitcoin’s volatility amidst the recent decline.
What’s next for the crypto giant
No one can estimate where the crypto winter will take the industry. Many sceptics claim that Sam Bankman Fried has successfully destroyed the crypto ecosystem. This loss has crippled various upcoming crypto exchange platforms, generally leaving crypto traders in shock and ruining the good reputation built by digital assets.
While on the other side of the spectrum, they claim that these events transpiring are no different from Mt Gox. The crypto winter is estimated to continue plaguing the ecosystem, although it will eventually subside. Many veteran crypto traders claim that it is one of the rare chances where an individual can purchase cryptocurrency much more accessible.
Although this strategy focuses on long-term rewards, it merely indicates the dedication various crypto traders have for Bitcoin and the entire crypto ecosystem.
Bitcoin has had a significant loss before. Fortunately, the most noticeable attribute this digital asset has is its ability to regain value.
The crypto ecosystem is currently suffering greatly at the hands of the crypto winter. Bitcoin is experiencing severe frostbite from it as well. Unfortunately, the sun is still yet to rise in the crypto winter, and many experts are urging veteran crypto traders to stay strong as the crypto volatility continues. Fortunately, with the rapid adaptation of crypto payment services from different big league companies such as Mastercard and Visa, they may be an increased use as such an increase in value.