Despite the depressed market, blockchain-based technologies, the Cryptocurrency market, and the metaverse are poised to generate trillions of dollars in value by 2030.
The previous year was challenging on a global scale. The financial markets plummeted into the red, affecting millions, if not billions, of individuals across the globe. The rate of inflation increased. Possibly the worst year for cryptocurrencies since Bitcoin’s BTC $21,195 debut. It has been more like an ice age than a crypto winter, with bad actors and weak projects dominating the news, including FTX, Voyager, Celsius, Terra, Hodlnaut, and Nexo this week.
Cryptocurrency in 2023
In 2023, the purge could continue with projects like Tezos, Lisk, and EOS that neither innovate nor produce new technologies. It has often been asserted that 90% of crypto initiatives will eventually fail or vanish because, among other reasons, they solve nothing.
The shady players’ failure to comply with transparency and decentralization severely undermined user confidence. Big Tech continues to abuse user data and privacy in the Web2 business. Forcing the Federal Trade Commission to investigate how Facebook, Google, Amazon, and Apple manage customers’ personal information.
And as harsh as this silver lining may sound, many crypto enthusiasts have hopefully learned that “without your keys, your crypto is worthless.”
In the blockchain sector, the fall of substantial centralized crypto businesses has taken precedence over the demise of developers and builders.
What is Proof of Reserves (PoR)?
Proof of reserves (PoR) emerged as a crucial concern in 2022 to restore confidence in the face of frauds and scams. PoR employs cryptographic proofs, verification of public crypto-wallet ownership, and third-party audits. Verifying that a centralized platform maintains sufficient assets to match user assets.
The decline of the cryptocurrency market wiped away almost $2 trillion in market capitalization. Many digital assets lose 90% or more of their value.
Nevertheless, guess what? As of September, stock market losses had depleted the wealth of American families by $9 trillion.
But Not Everything Is Gloom And Doom.
Despite the instability and demise of multiple Cryptocurrency markets, crypto’s risk-adjusted return in 2022 was comparable to U.S. and global stock indices and far better than U.S. bonds.
In the meanwhile, the blockchain market is poised for continued expansion. PwC believes that the value of metaverse-related projects alone will reach $1.5 trillion by 2030.