Crypto, crypto, have you any bull?
Yes sir, yes sir, maybe 2023 full!
One for my OG investors, one for my in-and-out mates,
And one for the new investors waiting for me to regulate!
When you put crypto and 2023 in the same sentence, expectations are bound to arise. Take a look back at 2022, and you can understand the uncertainty around
the future of cryptocurrency in India. Who knew that a crypto-winter would start? Who knew it would start with Luna crashing and crumbling to the ground? Or who even thought that the FTX collapse would wipe billions of dollars from the face of the earth?
The truth is that there’s no crystal ball that we can hover our hands over to peek into the future of crypto this year. Predictions could be wrong, but it’s interesting to speculate. That’s why it makes sense for us to look at the cryptocurrency future in India and around the world throughout 2023.
Addressing the crypto winter
The cryptocurrency markets are not immune to boom and bust cycles. Bitcoin, which was soaring at an all-time high of about $65,000 in 2021, is now valued at $17,000.
This is a repercussion of a wider global economic downfall. And there’s no telling when we might see an end to this.
Amidst factors such as interest rate hikes, dried liquidity in the markets, and increased inflation, not just crypto but the entire global economy is witnessing somewhat of a meltdown.
Technical indicators suggest that the macroeconomic environment right now could possibly last till the end of 2024, which means that crypto markets might be affected too. So, it might look like the future of cryptocurrency in India and around the world is bit unstable, but there are hopeful signs.
The crypto enthusiasts claim that the price of Bitcoin could skyrocket to $80,000. While that’s great to hear, the economic climate isn’t the best right now. Maybe towards the middle or end of 2023, we might start seeing significant changes, but it’s hard to tell right now. The last crypto bear market lasted over two years, who knows how long this one will last?
This time around, however, things seem to be a little different, starting with market regulation.
Future Of Cryptocurrency In India-Crypto regulation
Okay, this topic is practically overdue. If 2022 opened doors for tax, 2023 might open doors for regulation in the crypto market.
India has hinted at crypto regulations time and again over the past year, which is a great news for the future of cryptocurrency in India. The G20 summit, hosted by India, specifically talked about regulation and the repercussions of a non-regulated market.
Even though India has taken enough time to reach a conclusion regulation-wise, 2023 seems to be the year we will reach the climax of this discussion. By dipping its feet into the water with the RBI’s digital rupee, regulating the market only seems overdue at this point.
The regulation of the market will also open doors for new investors to join the space and allow us to focus more on building the use cases for these assets.
Here’s some more perspective on this equation:
Web 3 is getting more ‘adaptable’
Regulation not only brings more people into the ecosystem but also more use cases.
Let’s be more specific!
Defi apps and websites have been in development for a while. However, it’s not long before major brands also start flocking more toward these entities and contributing to their development.
DeFi technology, which runs on blockchain technology is far more efficient and introduces accessibility to a variety of communities that don’t have exposure to regular financial institutions.
Due to the increasing interest from governments and financial institutions, there are a variety of projects that could be implemented in the mainstream in 2023 and beyond. We’re just stretching the surface.
NFTs, of course!
2021-22, NFTs took over the world. There’s almost no major celebrity that either didn’t own one or endorse one.
However, despite seeming to be irrelevant right now, they still have more to them than you can imagine.
NFTs as an investment could be great and all. But what we witnessed was just one of many waves of popularity and use cases of digital art.
Judging from the lens of creation, and value generation, NFTs are a remarkable breakthrough into the world of virtual digital assets. The investment and speculation features that are associated with it is can fluctuate from time to time. But it very much seems that NFTs can very well gain more popularity in 2023 and beyond.
The forecast in terms of crypto is difficult to predict. But judging from the activity in the industry right now, it very well seems that we are heading into a more promising time where cryptos could very well have more certainty than ever.
