The price of Bitcoin has fallen 70% since all-time high in November 2021 and some altcoins have even had a 90% downturn. A newcomer in the crypto space might think that the industry is down for a 10 second count, but in fact the developments in the crypto industry have been significant in the last year.
Major banks consider blockchain technology a necessity to be competitive and to improve its services and to save billions. Santander claimed that banks could save 15–20 billion a year. Mastercard and Visa is in on making it possible for their customers to do crypto payments. Luxury brands are betting on the future of the metaverse. Meta opened its arms fully to the industry and has adopted the metaverse kid. Instagram has made it possible for users to show NFTs on the platform. Applepay have already taken a piece of the traditional payments pie and have created solutions for connecting crypto wallets to Applepay.
I agree. NFTs are a bit difficult to understand, but they are far more than just a jpeg image. NFTs have already had a boom in 2021 and is here to stay with innovative functions. The entertainment industry use NFTs to offer the NFT holder various forms of entertainment such as a concert or an art exhibition. Professional artist use NFTs to ensure payments and to lower the risk of forgery. NFTs are a big time business. In 2022, the sporting industry is set to earn $ 2 billion on digital collectibles, virtual access, and gaming.
Michael Sailor and his company MicroStrategy is relentless in its faith in Bitcoin and keeps on buying regardless of its downturn. Elon Musk needed cash and sold some Bitcoin and keeps on fiddling with Dogecoin and scaring the market with occasional tweets. Recently one of the world’s biggest investments managers Blackrock with its trillion-dollar purse showed up in the space and teamed up with the crypto exchange Coinbase. Although Blackrock is tight with the traditional banking sector the crypto industry cannot wait for a trillion-dollar injection. Boom!
Companies use blockchain technology to improve their services. Blockchain is a software solution to problems in various industries such as tracking and tracing products in the transportation industry. Or for securely storing private and sensitive health data. An entrepreneur could even start a crypto business to fund a shelter for animals. Anything can be programmed on the blockchain. A smart contract code can be seen as the computer saying, ”if x happens then y happens automaticaly”.
In the beginning of the year U.S President Joe Biden even signed an executive order on crypto to advance the U.S competitiveness and leadership in digital assets and crypto ecosystem.
Blockchains clearly has value for businesses and nations.
Investors believe that the crypto project has potential to increase their investments because the project can solve a problem. Sure, some crypto projects are useless and still increase in price, but the last stupid thing in universe is not yet created.
Let’s not forget that crypto is more than the price of an asset. The monetary value of the crypto market is not indicative of how far the crypto industry has come. CZ Head of the world biggest crypto exchange Binance, said it best “Price is just a reflection of mass psychology, not progress.”
Have a great day! / Henrik