The End of Cryptocurrencies?

No one knows what the future holds. We can only live for the moment while trying to predict the future with our past experiences.

The crypto market has been in a tough spot lately, and recent events in the crypto space have only reminded me of the final days of most ponzy schemes. After long periods of profitability, you approach a period of issues and complaints, which they will always promise to resolve. After some time, you may start hearing news of some major negative events associated with the company, and quickly the scheme starts becoming highly unprofitable. Your investments start turning into nothing, and finally, you realize that you've lost more than you've gained (if at all you ever gained anything).

Disclaimer: I'm not calling crypto a Ponzi scheme, just making an analogy.

So, let's look at the year 2022 in light of cryptocurrency-related events. For the last year, it has been on the bad side, and all signs of hope are easily dashed out by the next negative event. We can eventually think back to several events, such as the ultimate Terra Luna crash, which resulted in a major dip in the price of bitcoin.

Owing to the drop in the price of bitcoin, and other major coins on which most altcoins peg themselves, the crypto market became unproductive for most investors and businesses. What was the outcome?

Some Centralized Exchanges (CEX) are cutting down on their staff strength, e.g. coinbase which laid off almost 20% of their staff. The price of graphics cards is dropping below their Manufacturer's Suggested Retail Price (MSRP) as most miners are quitting the mining business as they no longer consider it profitable.

Another major concern is that people are losing funds all along. The market has continued in a bearish trend all this time, from January till this moment, and no major bullish event has raised hopes for most investors.

Things are practically falling apart in the cryptoverse. But is it the end?

The Final Destination

The world of cryptocurrencies is on the edge. I am speculating on two likely events—the first is extremely likely, and the second is extremely unlikely but possible.

First, the current crypto condition may act as a filtering process to test the strengths of shit-coins and irrelevant crypto-based projects. Thus, most projects are unlikely to see the light of the day at the end of this bearish season.

Second, this may result in the end of crypto, in part or in whole. If the system remains in a continuous downtrend, without recuperating, it could be easy for investors to start losing trust and withdrawing their investments. With this, crypto may come to an end through a loss of its relevance.

Only time will tell what the future holds.