The Wild Turn That Awaits Crypto in 2023
We've all been watching the crypto battles playing out in real-time. The collapse of FTX was the note of a major shift in how the crypto industry was viewed by the public and by regulators.
FTX managed to place themselves front and center in every conversation when it came to crypto. Go back 1-2 years in this space and they suddenly were on every billboard, in every ad, partnered with every famous person and also meeting with politicians.
It seemed like SBF was our golden child and we were on our way to finally having a seat at the big boys table. Institutional grade money was promised and political capital was seemingly constructed.
Fast forward and now we are left holding the bags. Not in terms of lower crypto prices - as that term is often used - but actually in terms of anti-crypto propaganda.
It is so bad in fact, that some people still speculate that SBF was placed into crypto by people who ultimately knew what would happen and had a plan to disenfranchise crypto.
Regulatory Clarity is Good, Not Bad
While many people in crypto say that no regulation is good, I don't buy into that. I actually think regulation is good for the space, for retail investors and ultimately for technological prosperity.
Having a wild west environment is what enabled the SBF's of the world. We don't need any more rug pulls and garbage actors in the space.
As much as I would love to see self-regulation and complete power to the individual, I think that is too much responsibility for the average person.
Having a bit of oversight can be a good thing. But it can't be biased in either direction. What we're seeing right now is a personal attack on crypto. Some sort of vendetta. It's unclear why but there seem to be some higher ups who have a personal - not professional - hatred of crypto.
Maybe they got rugged on some NFTs or some shit.
"Larger macro downturn market conditions should hopefully shift crypto projects away from speculation and more towards utility – one major utility category simply being meaningful, fun, social experiences," predicts Alex Zhang, the de facto head of Friends with Benefits DAO. He expects this to translate to "more meaningful Web3 social platforms and protocols," and foresees growth in "interoperable identity, on-chain social graphs, and crypto-abstracted social experiences." - PWC Global Crypto Regulation Report 2023
Where Are We Headed From Here?
In my opinion, we're going to see a lot of this play out in court on the main stage. I think Coinbase is strapping in and hunkering down for battle with the SEC. I think Coinbase will ultimately prevail and I'm willing to put some money where my mouth is by scooping up some COIN stock.
I haven't yet bought any so I guess that's telling you something. If and when I do buy some COIN stock, I'll make sure to write a longer post about why.
Web3, in my opinion, is going to be the next major trend of Crypto. We saw ICOs. We saw NFTs. We saw DeFi.
Now it's time for something new to emerge and have its trendy spotlight. I believe social platforms / web3 platforms that are connecting deep parts of the industry to Web2 ideals are going to take off.
The whole idea of digital identities, tokenization, NFTs and more are still just beginning to take off. This is going to be the breeding ground for innovation in the next cycle.
"Larger macro downturn market conditions should hopefully shift crypto projects away from speculation and more towards utility – one major utility category simply being meaningful, fun, social experiences," predicts Alex Zhang, the de facto head of Friends with Benefits DAO. He expects this to translate to "more meaningful Web3 social platforms and protocols," and foresees growth in "interoperable identity, on-chain social graphs, and crypto-abstracted social experiences."
10 Predictions for the Future of Crypto in 2023
I think we're on the verge of some interesting shifts in the crypto market. Play-to-Earn is also beginning to fascinate people as games mature and become more like their Web2 counterparts.
The key is - do you have the ability to hold your bags that long? Are you putting your bags in the right place?
These are questions to continuously ask yourself. It's important that you always question everything you THINK you know. Knowing the outer limits of your knowledge - what you do know vs what you don't know - is the key to being a good investor.
Stay frosty, frens.
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This is exactly my thought. Regulation would really help eliminate scam projects and save users from losing money. However, how Gary Gensler has handled the whole situation this past week is uncalled for.
The court system and house is where it should be decided not a single person appointed head of the SEC that's doing EVERYTHING BUT THEIR JOB. I'll be honest though I never heard of FTX or that Sam dude until it blew up lol
:) :) :) Well, if you follow the money, it is much more than speculation. Pretty much a fact. Enough to look at how much JP Morgan (also Blackrock, vanguard) invested in FTX, coincidently SBF and FTX had accounts in JP Morgan, and if I know it well (dont follow this cheap show anymore, so obvious) JP still sits 100s of millions FTX money without any intention to return it back to the users who lost everything... and again coincidently, all these investors are highly gov, system connected...
the regulations are killing the very basics of crypto: the privacy. if anyone wants that, they have the actual system for them. they are not really happy with that, but they want the same for crypto... where is the logic? the very regulated system is full with scams, basically the hole thing is a huge scam. That's the people duty to do their own research, and stay far from scams. If they can't do that (or at least recognize it), probably they deserve what they got. in my opinion, so simple.
we never can say for sure if regulation is an enemy or will help in him progress of Bitcoin, let's see how everything plays out
I also think regulation would be good for crypto as it will open up for new money to flow in which is what we all want to see happen. The question is why is SBF being protected as if it was anyone else they would be in the news continuously until the trial. If Gensler gets the boot we may find out why as the FTX truth will come out.
I agree that there seems to be a vendetta against crypto. It looks like FTX was a big political donor, and Binance basically brought them down. My guess is that they are after Binance, and the rest is only collateral.
I see a greater shift from web2 to 3, but isn't there a way out of all this regulatory climax around the crypto space sure we need a well guided regulatory system in crypto but it all seem like those imposing the law are totally against the idea of crypto which makes it difficult for them to view cryptocurrencies as a safe space for investors to pull in their money.
A greater shift awaits the traditional system with crypto in play as the major narrative.
I think there is only one solution to all this, defi, any exchange that is held by a central entity will always fall into problems with how it's being viewed by the powers that be so I think defi and am read of use where even chimpanzees can navigate and thrive in it will be the one answer to the problem the crypto space is facing right now. If its big enough, even Gensler admits Bitcoin is to big to take out of the equation against traditional fiat.
Not of we apply this thinking to hive I would say the to twenty rule we have now makes our network to small to be something that is to big to shut down. I do a gradual increase of five on top of current top number per year. Now don't ask me if there should be a cap to it but what the network needs is the to big to shut down characteristic.
My opinion and I'm sure you lads will have opposing ideas.
I highly respect any opinion contrary to mine, but personally, I think that regulations in the field of cryptocurrencies, although they bring more order, control and security for new investors, in the long run they turn out to be counterproductive in every way. The problem is that when legislators and governments realize that they can regulate something, and see that something can generate profit for them, then they burden it with taxes and excess laws that make everything difficult to an unbearable degree.
As for the rest, I think the same as you, I believe that Web 3.0 is going to take off and become more and more important, as will tokenization and NFTs. The truth is that, as I already said, this is just my personal opinion. Your post is very interesting.
Build the ecosystem of trust. All this shit keeps happening as the industry evolves....
We need to ask ourselves, how can we create trust. Look at the folks in the big pharma industry and the underdogs of the oil industry. What do they have in common??.
They've created this value chain of trust. This is wht we need to create. How we create is the big question??