One of cryptocurrency’s biggest achievements came in the late 2010s when Bitcoin was declared the best-performing asset of the decade. This put it above legacy assets like gold and even stock from some of the biggest companies in the world. Since it came on the scene, cryptocurrency has faced skepticism from those who see it as a fad or a scam. But this declaration helped to debunk some of these claims.
You might be seeking advice on newest cryptocurrencies in 2023 or whether you should invest at all. Now that we are in 2023 and cryptocurrency has faced even more ups and downs, is it still a worthwhile investment?
The State of Crypto
To say that the cryptocurrency market is a complicated one would be an understatement. The industry has seen several bull and bear runs over the last few years, with 2022 being an especially challenging year. In 2022 alone, both Terra and FTX, two high-profile projects in the sector, collapsed. In fact, the former CEO of FTX was just found guilty of multiple charges and is currently awaiting sentencing.
On top of all of this, the value of cryptos saw a slump across the board and even top companies had to downsize their workforce to adjust to the situation. In the last few months, however, several cryptos have been making market gains, including Bitcoin which crossed the $42,000 mark last month. A lot of these market movements have been credited to the incoming Bitcoin halving, the interest rate freeze by the Feds, and the possibility of a Bitcoin ETF being approved by the SEC.
Now, some analysts are predicting that Bitcoin could reach a new all-time price high by next year if this trajectory continues. This poses a dilemma for investors of whether or not to keep investing in cryptocurrency as a whole moving forward. With all the following considered, cryptocurrency remains a viable investment vehicle:
Price Trajectory
One of the first reasons why cryptocurrency is a worthwhile investment is the fact that its current price trajectory looks promising. It is easy to get discouraged by the bear run that the industry has seen in the past but these have always been followed by a bull run and significant market corrections.
Bitcoin is projected to hit the $100,000 mark around next year given the industry and regulatory developments currently happening and the profit investors (especially early ones) stand to make cannot be discounted. The crypto industry has shown time and time again that even if bear runs take place, it will always bounce back better than before.
And this isn’t limited to just Bitcoin either. There is plenty of evidence to suggest that as the price of Bitcoin goes up, so does the value of other cryptos. So, it is safe to say that crypto as a whole should be seeing price improvements in the next few months. As we enter 2024, the attitude within the industry seems to be one of optimism and those who choose to invest in 2023 should reap the benefits.
Industry Developments
Another reason why the cryptocurrency is a worthwhile investment in 2023 is the fact that the industry and the various tokens and blockchains within it have seen significant developments. Bitcoin, which has always fallen behind its peers in terms of use cases, has found application this year for developing NFTs and many think this is the start of many more use cases for the blockchain. Ethereum famously underwent its upgrade that moved it to a proof-of-stake consensus, reducing its energy use by over 95%. Dogecoin, which many had written off as just a meme coin, has been developing its practical applications and community for a while now.
It is easy to believe that the crypto industry is about profit-making and nothing else but various blockchain ecosystems seem to be in a race to develop the best use cases. This means that, first, there will be more demand for their native token, which means that their values will continue to rise. It also means that the crypto industry will have longevity via the use cases that these blockchains offer. This implies that cryptocurrencies are worthwhile long-term investment vehicles and not one-off fads.
Incoming Regulations
Another reason why crypto is a worthwhile investment in 2023 is the fact that it is better regulated than it was years ago. Many of us might remember the wild west period of the industry where there were barely any laws that governed it. During that time, pump-and-dumps, scams, and worthless projects flooded the market.
Now, regulators around the world seem to have caught up with the times and there are better laws in place for both companies in the space and consumers themselves. Crypto companies that wish to operate in various jurisdictions are required to register themselves and adhere to strict rules. This means that you are much less likely to get scammed by new projects promising a profit or even established companies.
And we can’t forget about the Bitcoin ETF. It has been applied for and heavily pursued within the industry for years now and it seems that BlackRock is on the brink of being approved. If it is, many believe that ETFs of other major cryptos are to follow. Regulation-wise, this is the safest and most innovative time to invest in crypto thus far and represents a unique opportunity for consumers.
More Options Than Ever
The crypto industry, if nothing else, has a wealth of options for any consumer to choose from. Tokens like Bitcoin and Ether might dominate the industry right now but there are thousands of tokens to choose from. From the legacy coins that have existed for years at this point to the newer tokens on the block. From stablecoins to stakeable tokens to privacy tokens, and everything in between, the crypto industry has more investment vehicles than you would know what to do with.
This makes crypto a worthwhile investment in 2023 as it means that you can invest according to your own preferences. For those concerned about risk, it is worth noting that there are many ways to make money from crypto and each comes with a different level of risk, so you can always choose one that is more comfortable for you. As more cryptos have entered the market, there are also more ways for consumers to make money beyond trading speculatively. You can, for example, stake tokens to earn interest, become a crypto lender, gamble with crypto, play no-loss crypto lotteries, and so on.
In 2023 and beyond, cryptocurrency has proven to be an innovative and worthwhile investment.
