How did the cryptocurrency market develop in 2022? The first six months can hardly be called good. Thus, the exchange rate of ETH and BTC for fiat money decreased by about 50% (compared to last year’s historical highs). Experts believed that the market stagnated a bit but would improve, so far that has not materialized. Nevertheless, the digital currency retains its relevance.
Users read about Bitcoin cryptocurrency more often. You can find information about it on the page. A good explanation of the decentralized digital currency is given there. There is an emphasis on legality, which depends on the specific region. In some countries BTC is banned completely or indirectly. Officially, the digital currency is used in Iran to circumvent sanctions and in El Salvador.
Decline in the Use of Digital Currencies
Will digital currencies rise in popularity after their severe collapse?
Centralized lending schemes have appeared, but they do not work that well in practice, as we’ve seen.
Experts believe that with the right approach, there are still good chances though. Some companies will always act like banks, there just needs to be the right kind of regulation implemented.
But such lending in practice leads to one disadvantage. With a high percentage of borrowed funds, companies can go bankrupt quickly if the market turns.
Holders can always wait for the turbulence to subside, but once you give your keys and lend your money, there are risks.
Analysts believe the digital currency could face significant problems over the next year, given the end of cheap money. Also, holders will be seeking to pay off their real-life debts which could worsen the outlook.
To maximize the growth of cryptocurrencies, it is still very necessary that they coexist with fiat ones. That makes it easier for investors to make predictions.
Which company is an important player in the long term? Which company will be stop hunted? Time will show. That’s why it’s important to keep in touch with the market conditions or consult with a financial advisor when building a portfolio.
Using Cryptocurrency to Play at the Casino
On the flip side, cryptocurrency is being used more and more often in virtual casinos, whose visitors want to keep their privacy. There are two types. In the first, this way of making a deposit is combined with the use of other payment systems. In the second, it remains the only one. The advantages include:
- the possibility of playing from any location;
- fast financial transactions;
- no restrictions for transactions.
A high level of security is ensured. There is no need to specify personal data, as transactions are anonymous. Bank requisites should not be entered.
The information is published on the page of Australian online casino, because gambling laws are tightened every year in this country. You can find reliable and safe virtual halls with the possibility of making a deposit in a convenient way on the website.
These include Fair Go casino in Australia, suitable for registering and playing with real bets. The site is in English, as it was developed by Australians. Another advantage is the user-friendly interface. The collection includes slots from RealTime Gaming. The minimum deposit is 20 USD. The license is issued in the jurisdiction of Curaçao.
The Future of Digital Currency
There are three nuances that make cryptocurrencies increasingly relevant. They are listed here:
- Safety for investors
- Unprofitable for fraudsters
- Slacking government regulation
Legislators from Washington, D.C., have noticed this. Some believe that the market needs to be adjusted, others on the other hand think that all crypto is gambling and should be just left alone to crash and burn under the weight of its own scams.
Officials often indicate the fall of the digital currency Terra Luna. This led (effectively) to the freezing of assets on other platforms which caused other collapses. Such a situation was considered to be a catastrophic event. So, understandably, the topic of regulation has become a hot topic for investors in all digital currencies.
People need to feel confident and so news from regulators can affect the price. Another point is energy efficiency. It is taken into account when creating digital currencies using powerful computers that use extreme amounts of energy. While this would not be that much of a problem if crypto replaced finance, having two systems in parallel is going to cause some waves in a world where energy prices grow shockingly in response to geo-politics.
Some people maintain that a digital currency investment should not exceed 5-10% of a portfolio. Maybe in the future it will be possible to pay with BTC for goods and services.
But that kind of thing is as good as a fairy tale for 2023 in most parts of the world, and even in countries with collapaing currencies, stablecoins are more popular for day-to-day payments.
Prospects for BTC
BTC is an indicator of the whole digital currency market. It takes the first place in terms of capitalization. All other currencies that use blockchain technology are following in the fairway. The record was in November 2021. At that time, 1 BTC was selling for 68,000 USD. The year 2022 began with a drop in rates. The reason was the ongoing macroeconomic uncertainty. It was caused by:
- fears of recession;
- rising interest rates;
- a shaky stock market;
- growing inflation.
As a result, the BTC exchange rate has fallen to $17,500. Some experts argue that the bottom has not yet been reached. Therefore, the purchase is equated to a speculative investment, the profitability of which is impossible to calculate. What can affect the continuation of rapid growth? The first place is the popularity among sellers. It is important that they accept BTC for goods.
Does Ethereum Have a Future
Ethereum is the second most popular cryptocurrency. It is suitable for technical analysis as it has enough liquidity on its markets but its value is quite speculative and more stronglye tied to the tech industry than the value of bitcoin.
Over the past 6 years, the ETH rate has grown thousands of times. Recently, a transition to the new PoS technology was made. As a result, the issuance of digital currency has become less energy-intensive, to which at least for now the markets react positively.
Only time will show whether Ethereum will increase in popularity even more or will be replaced by a different altcoin.
Conclusion: How Relevant is Digital Currency
Although cryptocurrency is characterized by ups and downs, it remains relevant due to its independence from national economic and political decisions. More practically speaking, it is used increasingly by residents of the developed world, in particular, when visiting virtual casinos to ensure anonymity. Funds from fiat wallets are also used to pay for goods and services. Sometimes information about digital currency appears in CNN news.