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Is It The End For Crypto?

Is It The End For Crypto?

Trading for Beginner -How to Buy Cryptocurrency Anonymously

The volatile nature of the cryptocurrency market has caused some investors to question whether digital currencies are still viable investments. After all, the prices have been known to crash suddenly and without warning, leaving many unwitting investors with significant losses. But is the end truly nigh for crypto?

In this in-depth article, we’ll explore if cryptocurrencies are still a smart investment option despite their unpredictable nature. By evaluating the fundamentals and the FUD (fear, uncertainty, and doubt) surrounding crypto, we’ll provide a balanced perspective of the opportunities and risks associated with digital currencies.

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Plus500 is a trusted global brand that offers an easy-to-use trading platform for online traders, alongside access to share trading, crypto and a thorough selection of CFDs.

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

First Published: 20. January, 2023
Last Updated: 24. January, 2023
Fact-checked by Adrian Müller

The volatile nature of the cryptocurrency market has caused some investors to question whether digital currencies are still viable investments. After all, the prices have been known to crash suddenly and without warning, leaving many unwitting investors with significant losses. But is the end truly nigh for crypto?

In this in-depth article, we’ll explore if cryptocurrencies are still a smart investment option despite their unpredictable nature. By evaluating the fundamentals and the FUD (fear, uncertainty, and doubt) surrounding crypto, we’ll provide a balanced perspective of the opportunities and risks associated with digital currencies.

Table of Content

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79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

No One Can Say For Sure…

First off, it’s important to understand why crypto markets can be so hard to predict. The value of any single coin is determined by how much people are willing to pay for it at any given time — meaning that its price could drop just as quickly as it rose before. This makes predicting future prices almost impossible in many cases since no one can accurately predict when people’s sentiments toward the currency will change.

Catalysts such as news reports, governmental regulations, and market trends can also have a significant effect on the prices of cryptocurrencies. This can make them difficult to trade as investors must stay up to date on any new developments that could affect the value of their investments.

Positive news such as improvements to the broader economic outlook or nationwide acceptance for example could lead to a surge in demand and, by extension, an increase in prices. Similarly, negative reports like hacking incidents or malicious exchange activities could cause the prices to crash.

Despite this unpredictable nature, some experts remain optimistic about the future of cryptocurrency. They point to increasing adoption rates as more and more people enter the market every day. This increased appetite for digital assets boosts confidence that prices will eventually recover and even surpass previous all-time highs.

Furthermore, with governments around the world recognizing virtual currencies as legal tender, there is hope that regulatory frameworks will be put into place allowing for smoother trading operations and greater transparency across exchanges. This would make it easier for investors to make informed decisions about their investments and could encourage more people to join the market.

The Benefits Of Crypto Still Remain

Those that bought in at the top are suffering. However, this doesn’t mean that cryptocurrencies are a bad investment. In fact, many investors still find cryptocurrencies to be attractive for a variety of reasons.

Security and Privacy

For starters, digital currencies offer an unprecedented level of security and privacy compared to traditional forms of payment — something invaluable in today’s increasingly connected world. This is because blockchain technology, which is the underlying technology for most digital currencies, is essentially a decentralized ledger system that records every transaction made on the network. This means that, unlike traditional payment methods, there is no central authority that could be hacked or manipulated.

NFTs

Additionally, the emergence of Non-Fungible Tokens (NFTs) has also opened up new investment opportunities in the crypto market. NFTs are digital assets that can be bought and sold on blockchain networks, and they have been gaining traction as investors recognize their potential for offering unique, tradable assets with real-world value.

Artists, brands, and businesses are finding ways to innovate with NFTs, which has added to the market’s appeal. For example, it’s now possible to buy and sell in-game items, digital art, tokenized real estate assets, trading cards, and other unique collectibles. These assets can be traded on a variety of NFT exchanges and offer investors the chance to diversify their portfolios.

Decentralized Apps dApps

Furthermore, decentralized applications (dApps) that run on blockchain networks bring even more functionality to the table. These apps allow users to access a wide range of services, from banking and finance to gaming and entertainment. Many of these dApps offer rewards in the form of digital tokens or coins, which can be used to purchase goods and services or traded on exchanges for profit.

These dApps serve the benefit of eliminating the need for trust in third-party services and allow users to remain fully autonomous. This is a major advantage that has helped to drive the adoption of blockchain technology and cryptocurrencies, making them increasingly attractive investments for those seeking alternative sources of income. With crypto at the core of these applications, there is hope that the industry will continue to grow and provide new opportunities for investors.

Community Tokens

Have you ever discovered an artist before everyone else and as an early fan wanted to benefit from their success? Community tokens are the solution you have been looking for. They allow users to directly engage with creators and reward them by buying their tokens or participating in token-backed projects.

These value-driven tokens can be used to fund various initiatives, such as the development of new products, music videos, and other creative projects. They also provide users with access to exclusive content and giveaways. Community tokens are a great way to support creators while also benefiting from their success.

Artists would often have to depend on major record labels to get their music out there, but with community tokens, they can now bypass those intermediaries and directly engage with their fanbase. This is one unique way that crypto can benefit creatives beyond just financial rewards.

More Accessible Than Ever Before

It’s becoming increasingly easier to get involved in the crypto market. A variety of wallets and exchanges have made it simpler for new users to buy, sell, and trade digital assets without needing an in-depth understanding of the technology. These types of early-stage investments were often blocked to the average investor in the past, but now anyone with an internet connection can get involved.

Whether it is joining an NFT community or investing in a cryptocurrency, the opportunities available in the crypto market are greater than ever. Anyone with the determination can run a Bitcoin node and staking pool, trade on a decentralized exchange, or simply purchase digital assets and store them in their wallet.

Low Fees and Fast Payments

Additionally, cryptocurrency transactions often involve extremely low fees (or no fees at all), making them perfect for international transfers or other large payments. Remittances and overseas money transfers are especially popular since they are often much cheaper than using traditional methods. This incentives businesses and those that send money across borders to switch to crypto as a viable payment option.

Although many layer blockchains are still slow, they are improving every day. This means that transactions can now be completed in a matter of minutes instead of hours, making the process even more attractive to those in need of a fast payment system.

Polygon is an excellent example of a scaling solution that has been developed and deployed successfully as a response to the growing demand and congestion issues of Ethereum. VC-backed blockchains such as Solana also show that capital is being invested in the development of faster and more efficient blockchain networks.

When it comes to Bitcoin, the lightning network is a promising scaling solution. It provides a way to send Bitcoin transactions quickly and securely, without having to rely on centralized third-party services like exchanges.

Decentralized and Transparent

Finally, many investors use cryptocurrencies as a store of value that is not at the mercy of any government or central bank. This provides a level of financial freedom that is unparalleled in the traditional world and allows users to remain insulated from any economic downturns or hyperinflation. More and more people are becoming aware of how fiat currency works and are hungry for an alternative, making crypto an attractive option.

Through a public ledger, blockchain networks also allow users to view and verify the history of every transaction made on the network before it is added to the blockchain. This creates a decentralized, transparent system of payments and investments that is increasingly attractive. This differs from traditional banking systems, which often hide details from the public and are vulnerable to manipulation.

Trading beginner - Plus500 -white

Plus500 is a trusted global brand that offers an easy-to-use trading platform for online traders, alongside access to share trading, crypto and a thorough selection of CFDs.

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Summary of The Fundamentals And Addressing FUD

Despite the crypto market having its fair share of crashes and corrections, the fundamentals underlying the market are more secure than ever. Cryptocurrencies provide a unique and versatile way to engage with digital assets, as well as offer a secure and transparent way to pay for goods and services.

The fact that crypto is becoming more accessible, has low fees, fast payments, and is decentralized and transparent makes it an attractive option for both novice investors as well as those more experienced in the world of finance. Despite FUD (fear, uncertainty, doubt) that may exist in the market, crypto still remains a viable asset class and industry. As technology and infrastructure continue to improve, we are likely to see even more growth in this area.

At the end of the day, the future of cryptocurrencies remains uncertain. However, there is still much to be optimistic about as more and more people turn to digital assets for investment opportunities. With a wide range of applications and uses already available,

Growth Trends and Long-Term HODLers

HODL has become a term for those who are committed to the long-term holding of cryptocurrency. These HODLers often see the volatility in the market as an opportunity to buy more coins at a discounted price and believe that in the long run, these assets will increase substantially in value. There have been countless times when crypto seemed to be approaching its end. From the early days of Bitcoin and the Mount Gox scandal to the 2017 ICO boom and bust, these events have shaped the cryptocurrency industry.

However, even after several market crashes, the industry continues to flourish. This is due in part to an influx of new investors and companies who are investing in blockchain technology and its potential applications for innovation. With regulations becoming increasingly friendly towards this space, crypto has an even brighter future.

In addition, recent growth trends suggest that cryptocurrency is becoming increasingly popular among younger generations. This demographic is more likely to understand the power of digital assets and use them for their own financial gain, driving market growth even further.

It’s clear that cryptocurrencies still have a lot of room to grow, despite the recent bear market. Increased regulation and mainstream adoption are likely just around the corner, and with more innovative use cases emerging every day, it looks like crypto is here to stay.

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Fair Reasons Why This Is The End of Crypto

Despite all the signs that point to continued crypto growth, there are several valid reasons why many think this could be the end of cryptocurrencies. These are just a few of the foreseeable reasons why this could be the end for crypto…

One of the biggest problems with digital assets is their lack of scalability. Many popular blockchains have been struggling to handle large volumes of transactions, leading to slow speeds and high transaction fees. This has made them largely impractical for mainstream use, which has slowed down adoption and hampered network effects. As we mentioned earlier, there are some scaling solutions being implemented, but it is still unclear if these will be enough to enable widespread adoption.

The biggest risk for crypto investors is that of government intervention. Central banks and governments around the world have yet to decide how they view cryptocurrencies, and their actions could ultimately decide the fate of digital assets. If governments start regulating and taxing cryptocurrencies, this could lead to a huge drop in demand and prices.

Another major crypto collapse like the recent FTX flash crash could also be a huge blow to the industry. These events are becoming increasingly common due to their highly speculative nature, and these can cause long-lasting effects on confidence in crypto markets. Debt and irresponsible use of investor capital led to this crash but for those that aren’t initiated into crypto education, this can scare them away from investing.

Finally, there are still many questions about the security of cryptocurrencies and blockchain technology as a whole. Incidents like malicious code hidden in ICOs or smart contract bugs have caused some people to be wary of these new technologies. Until these issues can be addressed and resolved, wider acceptance may not come as quickly as we’d like it to.

Crypto Is Here To Stay – But Be Careful!

Not everyone will care for the libertarian views of early crypto creation. However, there is a growing understanding of other use cases. Blockchain technology is being used to create decentralized applications, such as in the healthcare and legal industries, that could have a much larger impact than any speculative investment opportunity.

If it’s not Bitcoin or other altcoins, stablecoins also provide a way for people to transact and move money around, creating opportunities in emerging markets that have limited access to traditional banking services. Stablecoins are backed by real-world assets, such as fiat currencies or commodities, offering users more stability than the traditional crypto market. If another major stablecoin goes under (like Terra), users may begin to panic once again.

Bitcoiners will say that one Bitcoin is worth one Bitcoin and fiat currency is being devalued. However, the asset class still has many drawbacks that could limit its long-term potential. The extreme volatility remains a major hurdle, while adoption is still lagging behind. “Bitcoin, not crypto”, has become the norm for many, as it’s thought that Bitcoin will be the only coin with real potential.

When it comes to crypto (altcoins) in general, the jury is still out on whether or not they will be a viable asset class. Some are speculating that the entire industry is just prompted up by venture capital funds and these entities gain early access to emerging crypto before the public does. When the public is aware, they can just dump it, leading to an artificial price crash.

Some argue that these projects are not really that innovative, as many of them are based on existing blockchains and just feature minor changes. Whether this is true or not remains to be seen, but it’s tough to deny the potential of blockchain technology and its potential to disrupt traditional systems.

Despite the challenges, it’s clear that crypto is here to stay. As long as investors continue to be informed about market conditions and understand the risks involved, cryptocurrencies can still offer a viable opportunity for growth. However, crypto is like a minefield – one wrong move and you could find yourself in deep trouble. Be sure to research any project before investing, and always remember the idea of “buyer beware”. With enough knowledge, crypto can still be a viable asset class with lots of potentials.

Potential Black Swan Events

A black swan event is an unpredictable event that has a severe impact on the market. It’s impossible to predict when or if one of these events may occur, but investors should still be aware of them and how they could affect their portfolios.

The most common type of black swan event in crypto is government intervention. Governments have been known to crack down on cryptocurrency exchanges and ICOs, as well as taking legal action against individuals who break laws or violate regulations. This could cause a massive sell-off across the markets, resulting in deep losses for those who aren’t prepared.

Another potential black swan event is increased competition from other digital assets. Major companies are entering the space with their own blockchain projects, which could potentially take away the spotlight from Bitcoin and other altcoins. This could lead to a major shake-up in the crypto markets, as well as create new opportunities for investors.

CBDCs are another potential black swan event, as they could make traditional banking services more efficient and cost-effective. Outlawing crypto and forcing the population to use CBDCs could cause a large sell-off, which is something investors should watch out for. We’ve seen gold become illegal to own in the U.S before, and similarly, crypto could be next.

Finally, hacks or expansions of existing projects could have an impact on the markets. For example, if Ethereum expands into a proof-of-stake system, that could cause a massive shift in prices due to the amount of capital invested in it. Similarly, any major hack or security breach can cause extreme volatility and losses for those who are unprepared for such an event. The crypto industry has recovered from these types of attackers before. But how many more will it take to permanently shake the confidence of investors?

Cryptocurrency is still a viable asset class despite its price fluctuations and other challenges facing it. Investors should be aware of potential black swan events and how they may affect their portfolios, as well as gain knowledge about the markets before investing. With the right research and understanding, crypto can still offer an opportunity for growth.

Trading beginner - Plus500 -white

Plus500 is a trusted global brand that offers an easy-to-use trading platform for online traders, alongside access to share trading, crypto and a thorough selection of CFDs.

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What’s The Alternative?

Some people view crypto as a risky investment and don’t want to take the risk. If that’s the case, there are other options available.

The most popular alternative is to invest in traditional stocks and bonds. This way, you are exposed to the stock market and can benefit from dividends or capital gains when prices rise. However, these investment vehicles aren’t without flaws. Prices can drop significantly and there are also risks of fraud or market manipulation.

Another way to invest is in commodities like gold and silver. These are tangible assets that can provide an inflation hedge, but it’s important to remember that commodities also require storage space, which can be costly. Sending it cross-borders can also incur extra fees, so it’s essential to understand the costs associated with this type of investment.

Cash is always an option and it’s the safest way to store value. But keep in mind that cash can depreciate over time due to inflation, so it’s important to invest the cash in something that can increase its value.

Sure, there is real estate but again, like commodities, it can’t be transported cross-border easily, and it requires a large upfront cost. Jurisdictions can also tax profits made from real estate, so it’s important to understand the legal landscape before diving in. If a country becomes authoritarian, real estate could be seized or taxed heavily, so it’s essential to factor in the political landscape as well.

Crypto is a viable asset class because it’s insurance as described by Bitcoin advocate, Greg Foss. All fiat currencies go to zero according to Voltaire. Crypto more specifically Bitcoin is built to combat this issue and maintain its value. Despite the risks, it is still a beneficial asset class for investors who understand the risks and are willing to take on the challenges that come with it.

Other cryptocurrencies may struggle. Some cryptos are purely for fun. Others are openly scams. Recent events could lead to the end of these cryptos. So when asking, “Is it the end for crypto?” the answer is both yes and no. It depends on which crypto you are talking about.

Crypto Is A Symbol

Going beyond the value of crypto as an investment, it’s worth noting that cryptocurrency has a much larger significance in the modern world. It is a symbol of freedom and autonomy. It stands for decentralization, transparency, and trustlessness.

It also serves as a way to move capital across borders without relying on traditional banking systems. Crypto can also facilitate commerce between two parties who don’t necessarily have access to regular financial institutions.

Cryptocurrency will continue to be relevant even if prices crash again. Its symbolism and inherent features are too powerful for governments or other actors to ignore- no matter what their stance is on its use or validity. Those that are in it only for money may want to exit when crypto crashes, but those that are in it for the long haul will most likely stay.

Some crypto enthusiasts will die for the cause. This will keep the asset class alive. Even during the darkest times, these fans will be the ones who keep the fire burning. Are crypto prices still viable? Yes, in some cases. It is up to the investor to understand the risks and rewards of crypto-investing and to make an educated decision on whether or not to invest. The future of crypto may be uncertain, but its potential remains undeniable.

The Bottom Line…

At the end of the day, it’s impossible to answer definitively if cryptocurrencies are still viable investments or not. The truth is that there will always be risks involved with investing in digital currencies due to their volatility and unpredictable nature. That being said, many experienced traders and investors still see potential in crypto markets despite these risks — so ultimately it comes down to the individual investor to decide whether they’re comfortable making such an investment or not.

Regardless of how the market swings, it’s safe to say that cryptocurrency is still very much alive and well. With new technologies such as lightning networks, staking options, and decentralized finance becoming more popular among investors, crypto is here to stay for the long term. There may be plenty of turbulence on the horizon but with the right tools, anyone can still make a smart investment in the future of digital currencies.

About the author – T.R. Carnegie

I am a retired investment banker who has invested heavily in energy stocks since 2005. My goal is to help people understand what is really going on behind the scenes and to provide them with the information they need to take control of their financial future. These days, I am an energy stock investor who has made money from oil, natural gas, coal, nuclear power, wind, solar, biofuels, storage, and battery technologies. In this blog, you’ll find ideas about investing in companies that will help us reduce our dependence on fossil fuels, increase access to clean energy, improve efficiency in manufacturing processes, and build products that save people money and protect the environment.

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