Crypto prediction of 2023
I predicted in 2022, and they were widely off!
But I would like to do it again, this time in a very bearish prediction of the future...
#1 Crypto exchange bad reputation
After FTX, the crypto exchanges are questioned toward to end of 2022, it will continue being judged by people.
It can be risky to store your cryptocurrency on an exchange because exchanges are a common target for hackers. If a hacker is able to gain access to an exchange's servers, they may be able to steal the cryptocurrencies that are stored there. This is why it is important to choose a reputable and secure exchange, and to enable two-factor authentication to add an extra layer of protection to your account.
Even if an exchange has strong security measures in place, there is always a risk that it could be hacked or that the exchange could go out of business, potentially leading to the loss of your cryptocurrency. For this reason, it is generally considered to be more secure to store your cryptocurrency in a personal wallet that is under your control. This way, you are the only one who has access to your private keys, which are needed to spend your cryptocurrency.
Ultimately, the decision to store your cryptocurrency on an exchange or in a personal wallet is a personal one that depends on your own risk tolerance and needs. It is important to carefully consider the potential risks and to make a decision that is right for you.
#2 Crypto regulation is coming
Cryptocurrency regulation is an evolving area, and the level of regulation varies from country to country. In some countries, there is little or no regulation of cryptocurrency, while in others, there are more comprehensive laws and regulations in place.
Many governments around the world are considering or have already implemented some form of regulation for cryptocurrency. These regulations can take a variety of forms, such as requiring exchanges to register with financial regulators, imposing taxes on cryptocurrency transactions, or setting rules for the use of cryptocurrency in payments.
The goal of these regulations is often to protect consumers and prevent money laundering, terrorist financing, and other illicit activities. Some people believe that regulation is necessary to establish trust in the cryptocurrency market and to encourage mainstream adoption. Others argue that too much regulation could stifle innovation and undermine the decentralization and anonymity that are key features of many cryptocurrencies.
It is difficult to predict exactly how cryptocurrency regulation will develop in the future, as it is an evolving area and different countries are taking different approaches. It is important to stay informed about the regulatory landscape in your country and to understand how it might affect your ability to buy, sell, and use cryptocurrency.
#3 CBDC is coming
CBDC, or Central Bank Digital Currency, refers to a digital currency issued and backed by a central bank. CBDCs are intended to provide an alternative to physical cash and to offer a range of benefits, such as faster and cheaper payments, improved financial inclusion, and better traceability of transactions.
The adoption of CBDCs is still in the early stages, and different central banks are taking different approaches to their development and implementation. Some central banks, such as the People's Bank of China and the Bank of Thailand, have already launched pilot projects or limited releases of CBDCs, while others, such as the European Central Bank, are still in the early stages of exploring the potential of CBDCs.
It is difficult to predict the extent to which CBDCs will be widely adopted in the future, as it will depend on a range of factors, including the specific features and benefits of the CBDCs that are developed, the regulatory environment, and the level of public trust and acceptance. Some experts believe that CBDCs have the potential to revolutionize the way that money is used and could eventually become a widely-used form of payment, while others are more skeptical about their prospects.
#4 Metaverse and NFTs may come back
The metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the internet. It is a concept that has been explored in science fiction and technology circles for decades, and it is often seen as a potential evolution of the internet.
NFTs, or non-fungible tokens, are a type of digital asset that represents ownership of a unique item or piece of content, such as a piece of art, a collectible, or a virtual real estate asset. NFTs are built on blockchain technology and are unique because they cannot be exchanged for other tokens or assets on a one-to-one basis, as is the case with many other cryptocurrencies.
It is possible that the metaverse and NFTs could play a role in the future evolution of the internet and the way that people interact with and own digital assets. Some experts believe that the metaverse could become a major platform for social interaction, entertainment, and commerce, and that NFTs could be used to represent and trade a wide range of digital assets within this virtual environment. It is still too early to say exactly how the metaverse and NFTs will develop, but they are areas that are worth keeping an eye on as they could potentially have a significant impact on the way that we interact with the digital world.
#5 Institutional adoption slowly
Institutional adoption of cryptocurrency refers to the involvement of financial institutions, such as banks, asset managers, and hedge funds, in the cryptocurrency market.
Institutional adoption is seen as a key factor in the growth and mainstream acceptance of cryptocurrency, as it brings additional liquidity and stability to the market.
Over the past few years, there has been a trend of increasing institutional adoption of cryptocurrency. Many financial institutions have begun to offer cryptocurrency-related products and services, such as custody solutions, trading platforms, and investment funds. Some have also started to explore the use of cryptocurrency and blockchain technology for internal operations and for improving the efficiency of financial systems.
However, institutional adoption of cryptocurrency is still in the early stages and is being held back by a number of challenges, including regulatory uncertainty, a lack of infrastructure, and concerns about security and market volatility. It is difficult to predict the exact extent to which cryptocurrency will be adopted by institutions in the future, as it will depend on a range of factors, including the regulatory environment, the development of infrastructure and security measures, and the level of public trust and acceptance.