This has been a disastrous year for the cryptocurrency market as the crypto long winter may be extended after one of the world’s largest cryptocurrency exchanges, FTX, recently filed for bankruptcy.
Not only does the company still owe customers a lot of money, but founder and CEO Sam Bankman-Fried has done something like using customer funds to bail out Alameda Research, a crypto trading firm he owns. It appears that he was involved in illegal activities.
The problem is now spreading to other cryptocurrency companies, and investor confidence is at an all-time low.With all the uncertainty, it’s hard to be super bullish in the industry right now, but my top long-term crypto buyers in 2023 are none other than the world’s largest cryptocurrencies. Bitcoin (Bitcoin -1.33%)— and it’s not even close.
There are thousands of cryptocurrencies out there today, most of which offer nothing in particular other than the same payment functionality as nearly all cryptocurrencies. I could see it.
But I definitely believe Bitcoin will take hold. Pioneer of cryptocurrency and blockchain technology. In particular, the technology has already significantly disrupted the payments sector and is expected to eventually disrupt many other industries, including cybersecurity, healthcare and cloud storage.
Bitcoin no longer has its own technological edge. Its network processes less than 10 transactions per second, much slower than many competing cryptocurrencies. Moreover, networks are still very energy intensive. proof of work A consensus mechanism in which miners attempt to solve cryptographic puzzles as quickly as possible using large amounts of computing power. This will award Bitcoin tokens.
Still, Bitcoin has a limited supply of 21 million tokens, which some believe is a hedge against inflation, or “digital gold.”
I’m not entirely sure about this, but I think this finite amount gives the token more value. Cryptocurrency With no upper limit on circulation, it can be difficult to create compelling supply and demand dynamics.
Bitcoin is also the cryptocurrency that seems to have the most mainstream acceptance. For example, many of Wall Street’s largest banks have begun offering their clients access to Bitcoin-based funds. Many custodian banks can also accept and store bitcoin for their clients like any other asset. Also, there are 2,300 of his businesses in the US that accept Bitcoin (excluding Bitcoin ATMs) and more than 15,100 businesses worldwide. There are even his two countries, El Salvador and the Central African Republic, that have made Bitcoin their legal tender.
Short-term uncertainty, but a bright future
all things considered it happened For FTX, I think the crypto winter will last longer than originally expected. Ultimately, more regulation will likely be needed to provide clarity and reassure investors. The FTX scandal didn’t hurt Bitcoin’s effectiveness.
Hopefully, scandals and further regulation will further weed out bad actors and rogue tokens, paving the way for more Bitcoin adoption. This is due to greater institutional interest on Wall Street, more use of Bitcoin in commerce, or the ability to buy it. , a smoother and safer way to sell and hold bitcoins. A recent survey of 2,000 of his customers by The Motley Fool found that 62% would consider buying more cryptocurrency if they could keep it in their bank accounts.
All of this makes me believe Bitcoin will be around for a long time and gain a good reputation in the process. Prices have fallen by more than 65% this year, making him the top cryptocurrency to buy for 2023.