5 Cryptocurrency Trends to Watch in 2023
After the collapse of the world’s economy due to the effects of the global pandemic of coronavirus, we can see that almost every industry in the world suffered some heavy consequences. At the same time, we can see that cryptocurrencies suffered a pretty heavy blow during the first two months of the pandemic. In March, Bitcoin lost 70% of its worth in only a couple of days.
After 2019, which was a pretty exceptional year for the world’s cryptocurrency market, 2023 was a pretty big shock due to all the things that happened at the beginning of the year. However, we can see that many of the predictions and trends that were pointed out by some of the experts will have to undergo massive changes. Instead of being a fruitful year, 2023 will be vastly different from what we’ve been expected. Even with all these negativities, cryptos will manage just fine.
If you are interested to see what were some of the predictions early on, be sure to take a look at vcpost.com, and you can compare them with those we’ll present you with. With all of this information in mind, we would like to talk about the things that have changed after the global pandemic started and what we can expect from 2023, in terms of cryptocurrency trends that we can expect will emerge this year. Without further ado, let us take about these a little bit.
1. Small Miners are no More
Maybe you didn’t know, especially if you are newly-introduced to the concept of digital currencies, but small miners had a lot of chance to mine BTC in the beginning. We are talking about a time period 2010-2017. In the last three years, we can see that chances for small miners to dig up some pretty healthy profit from mining became minimal. Why is that, you ask? Well, we can see that large companies have started to dig up cryptocurrencies by investing all of their resources into it.
This means that there are no chances for small miners to have a proper kind of satisfaction in terms of money. The question is if they are able to mine anything at all with so many companies deciding to focus on mining. Surely, we are living in a time where organizations with almost limitless resources started participating in a market that used to be almost exclusively made of small miners. So, we can presume that the verdict is that small miner are no more.
2. Countries will Develop Their own Cryptos
As we could see in 2019, a lot of countries have announced that they started developing their own digital currencies. There is no information about how they will do that and if these will replace national fiat currencies, but we’ve got the information. We are talking about countries like South Korea, Russia, France, Estonia, China, UAE, and Japan.
All of these countries have officially announced that the procedure of creating national cryptos has started in 2019. According to what we’ve been able to come across, France has started the development in February. However, China is a long way ahead of all the competition and we can expect that we will have a chance of witnessing this crypto before any other country that we’ve mentioned earlier.
3. Governments Will Step In
Everyone who knows even the basic things about digital currencies is aware that pretty much every institution and expert have been skeptical about the concept of cryptocurrencies. Well, this is something that changed completely in the last couple of years. Now, we can see that a lot of companies from all over the world have adopted it and this means that the governments are now inclined to recognize it in some ways.
So, we can see that governments have started making plans about entering the cryptocurrency market. We’ve already talked about countries developing their own currencies, but since they are not completed, there is no regulation that could provide us with an idea of how this will work. So, with all of the adoption made by various companies, the governments will need to find a way to make it taxable. This is a pretty good way for making more money for the country’s funds and reserves.
4. Domination of Stable Cryptos
Did you hear about the term stable coins or stable cryptos? Well, this is a term that refers to coins that have some kind of connection with some currency. In this case, we are talking about the US dollar. These stable coins have become popular in a couple of years. We can see that the market cap of these coins now has $4 billion. Furthermore, it’s used for exchanging cryptos.
Without a doubt, with so many problems US dollars have in 2023, we can see that there are some problems in this regard. However, all the predictions say that it will be more stable after the election in the country are over. But we can be pretty sure that the domination of stable coins will be one of the biggest surprises that crypto experts will be able to witness during the last couple of months in 2023.
5. BTC Halving and Ethereum 2.0
When it comes to the question of different digital currencies in 2023, we can see that BTC is expected to experience some halving. Some people argue that this already occurred back in the first months of 2023. However, some experts state that we can expect this to hit us before the end of the year. Plus, we can see that Ethereum, one of the most popular digital currencies, alongside BTC, was expected to move to phase two. This means that its modus operandi will completely change.
Naturally, it needs to be said that the second version of Ethereum needs to be tested before its launch. Naturally, some of the tests have been conducted, but we can expect from some of them to be completed in 2023 and we can expect Ethereum version two to be officially released near the end of this year. As we’ve stated, many things have already been completed and we can expect that it will represent a massive improvement.