August 29th 2023 – Tech Round – View the article here.
The history of cryptocurrency can be traced back to 2009 when Bitcoin, the first decentralised digital currency, was introduced by the elusive Satoshi Nakamoto.
Bitcoin’s innovative blockchain technology, which ensured secure and transparent transactions without the need for intermediaries, laid the foundation for a new era of financial possibilities.
Following Bitcoin’s success, a number of alternative cryptocurrencies, or altcoins, emerged, each with unique features and goals. Ethereum, introduced in 2015, expanded the concept by introducing smart contracts, enabling programmable and decentralised applications to be built on its platform.
Over the years, the crypto market experienced extreme volatility, with rapid price surges and crashes, attracting both enthusiastic investors and regulatory scrutiny. Major financial institutions and corporations began to recognise the potential of blockchain technology, with El Salvador even making it legal tender. For over 2 years now, it has dominated headlines and received widespread attention.
As of now, the crypto space stands at a crossroads. With ongoing technological advancements, huge volatility and evolving regulations, the future trajectory of cryptocurrencies remains uncertain, leaving us to wonder: What’s happened to it now?
We asked the experts just that, and here’s what they had to say:
Our Experts
- Siam Kidd, Author and Trader
- Eleanor Bennett, Founder at Competitive Insight
- Paul Rossini, Co-Founder & CEO at AssetPass
- Denis Creighton, CEO and Co-Founder at IMPT
- Andrew Delves, Head of Crypto and Digital Assets at ClearBank
- Mann Matharu, Founder at Qi Digital
- Sam Dallow, Accounting, Finance and Tax Expert at Counting King
Siam Kidd, Author and Trader
“Crypto has just exited one of the worst bear markets it’s ever endured, going from $69k down to $15k per BTC. And a market cap of $2.8 Trillion down to $811 Million. But this was actually nothing out of the ordinary or even unexpected. I and other practitioners mentioned many times in 2021 that 2022 would be the start of the next bear market simply because Bitcoin follows a predictable 4 year cycle. This is because every 4 years, the amount of Bitcoin mined in every 10 minute block, halves. So in a nutshell, this makes Bitcoin move in a certain pattern over a 4 year period.
– It goes up lots for a year and a bit.
– It crashes hard for a year and a bit.
– It then goes choppy sideways for a year and a bit.
“So despite all of the fear in the media, now is a superb time to start reading up on Crypto as you can see we are firmly in the middle of the 3rd part of the cycle, the sideways copy bit. Since the inception of Bitcoin, it’s always gone up from now until about 18 months after the halving. But ALWAYS crashes in December. So the next halving is April 2024, so the likely crash should commence December 2025. It’s worth looking into, I for one will definitely be selling all Crypto then!”
Eleanor Bennett, Founder at Competitive Insight
“As an individual engaged in an industry where numerous colleagues shared a sincere fascination with the practical applications of cryptocurrencies like Ethereum, my disappointment has grown significantly over the past two years. Cryptocurrencies are being accumulated, pilfered, and trivialised through memes, rather than being regarded seriously as functional decentralized currencies in their own right.
“In the past, I was an enthusiast who considered safeguarding a modest investment in select cryptocurrencies using cold storage. However, the recent restrictions on purchasing cryptocurrencies like Monero in the UK have all but extinguished my interest. Moreover, the stringent limitations imposed by many UK banks on these investment types have played a significant role in my declining interest. The recent closure of several wallet services (such as Paxful) has not escaped my notice either, and the financial collapse of BlockFi resulted in substantial losses for many dedicated investors. Given the circumstances, I’m leaning towards opting for Vanguard instead to save myself the hassle of worrying about my investments!
Paul Rossini, Co-Founder & CEO at AssetPass
“What happened to the 20% of the existing Bitcoin supply that has been irreversibly lost since its inception? That’s a question that the crypto community needs to take more seriously if we want to see cryptocurrencies move from niche investment into the mainstream.
“The risk of account lockout is real. There are countless tales of individuals finding themselves entirely locked out of their digital wallets due to the loss of their 24 Seed Phrase – with some people now locked out from accessing fortunes in the hundreds of millions of dollars. And an equally common scenario involves beneficiaries of a Will being denied access to inherited cryptocurrencies because they do not hold the account password.
“This predicament stems from the absence of a mechanism, unlike traditional banks where access to crypto wallets can be retrieved without the original passwords. Consequently, a substantial number of Bitcoin remain dormant within inaccessible accounts. This is a significant limitation in digital wealth management and must be overcome for cryptocurrencies to move into the mainstream.”
Denis Creighton, CEO and Co-Founder at IMPT
“In recent years, both sustainability and blockchain have garnered significant traction from the public. Sustainable crypto or sustainable blockchain is a new innovative space that holds the potential to reshape social responsibility and transparency surrounding environmental change. Often blockchain is painted as a part of the problem when it comes to global warming, however, this is a significant misrepresentation. Blockchain actually holds the power to assist in the global transition needed for a sustainable future.
“For instance, blockchain has been used to facilitate the trading of renewable energy, which can help increase the adoption of renewable energy sources. It can also be utilised to verify sustainable practices adopted by companies such as the use of carbon credits.
“For example, at IMPT, our mission is to push a credible carbon market by leveraging blockchain technologies to combat traditional issues associated with the carbon market including double counting of credits, fraud and transparency issues. In this way, blockchain becomes a supporter of sustainability, as it improves the tracking and verification of carbon credits. Consumers can see that their carbon offsets are legitimate and companies can benefit from lowering a fraction of the emissions used when running their business.
“Sustainable blockchain can be deployed in a multitude of different applications, however, at its core, its primary function is to act as a mechanism to validate the accuracy of sustainability assertions. Through the global adoption of sustainable blockchains blooms environmental transformation, as this eliminates the projects that claim to be sustainable, but are not.”
Andrew Delves, Head of Crypto and Digital Assets at ClearBank
“Cryptocurrency prices have dropped from historic highs for many reasons. Inflationary pressures have reduced consumer disposable income; rising interest rates offer an alternative (less volatile) means of getting a return, and consumer fears have been heightened post-FTX.
“Compared to previous volatility, Bitcoin’s price has remained relatively stable over the past six months, holding above 20,000 USD. Notably, Bitcoin adoption is increasing in emerging markets where inflation is rampant. Institutional Bitcoin adoption is also on the rise, as evidenced by Blackrock’s entry into the space.
“Trust is essential for blockchain technology and cryptocurrencies to enter the mainstream; addressing key compliance themes and consumer protection—especially as we are still in the early stages of understanding how blockchain technology is driving huge efficiencies in the payments space and beyond. Collaboration between all parties—banks, regulators, and digital participants—will be critical.”
Mann Matharu Founder at Qi Digital
“Crypto is a subset of the blockchain ecosystem. The ‘blockchain’ itself has carved out a special place in the world of technology. It’s safe to say, that sadly there is a lot of fear, uncertainty, and doubt (FUD) around cryptocurrencies. The main reason for that is, the vast number of cryptocurrencies do not have any viable projects behind them. Some cryptocurrencies can be programmed with little programming knowledge and listed on decentralised exchanges, mixed with a little viral marketing could make the price of such cryptocurrencies surge. Anyone participating in this type of speculative investing is just gambling.
“Having said that, there are exciting innovations within this space. Cryptocurrencies such as Bitcoin and Ethereum, and a handful of others, have built a strong enough network that has gained the interest of corporates and governments around the world.
“In the near future, we will continue to see a rise in ‘crypto-commerce’, where international businesses will thrive because of the possibility of paying for goods and services using cryptocurrencies as they are inherently cheaper, safer and faster to transact with.
“Consider 6-8% of the UK population hold or invest in cryptocurrencies – that number will keep growing.”
Sam Dallow, Accounting, Finance and Tax Expert at Counting King
“Ah, crypto; the promise of riches beyond your wildest dreams. Well, not quite, it seems. The cryptocurrency market has been in a state of decline since November 2022. The price of Bitcoin has fallen from its all-time high of over $68,000 to below $20,000 as of August 2023. This decline is due to a number of factors, including:
- Rising interest rates
- Regulatory crackdowns
- Increased competition
- Crypto-specific events.
“Rising interest rates have made riskier assets like cryptocurrencies less attractive to investors.
“Regulatory crackdowns have made it more difficult for investors to access and trade cryptocurrencies.
“Increased competition has made it more challenging for any one cryptocurrency to gain significant traction.
“As for crypto-specific events, such as the collapse of the TerraUSD stablecoin and the Celsius Network lending platform, these have also contributed to the market decline.
“The long-term outlook for crypto is still uncertain. While the current market decline is concerning, it is important to remember that cryptocurrencies are still a relatively new asset class and that they have experienced periods of volatility in the past. It is possible that the market will recover in the long term, but it is also possible that crypto will become a niche asset class with limited appeal to mainstream investors.
“Regulation is likely to play a major role in the future of crypto. Governments around the world are still trying to figure out how to regulate cryptocurrencies. This uncertainty is likely to continue to weigh on the market in the near term. However, if governments can develop clear and consistent regulations, it could help to legitimise crypto and attract more mainstream investment.
“The crypto space is constantly changing, with new projects and innovations being developed all the time. This dynamism is one of the things that makes crypto so exciting! But, it also makes it difficult to predict the future (anyone got a crystal ball?) Ultimately, it is likely that crypto will continue to evolve in unexpected ways in the years to come.”