In February 2022, the world started talking about the beginning of crypto-winter. This is a rapid decrease in the value of cryptocurrencies – currencies that exist only virtually. The world’s first cryptocurrency, Bitcoin, had lost 73% of its value by November 2022 (compared to November of last year).
A year ago, one Bitcoin was worth $69,000 (this was its historical maximum), but this fall, you could get only $18,400 for one coin. At the same time, the fourth largest crypto exchange in the world, FTX, started its bankruptcy process, and its owner’s fortune dropped from $17 billion to $100 thousand. Because of the crypto-winter’s billions of dollars were left frozen and thousands of people lost their jobs.
Based on the conditions created in the market, most enthusiastic visionaries began to explore new niches, potentially comparable to cryptocurrency activity in terms of profitability. Investing in bonds of rapidly developing countries, including the defense segment, slump-resistant hedge funds working with indices and studying currency arbitrage came to the forefront. The latter is beloved by the masses for its accessibility, speed, and safety.
Taking into account the crazy volatility of world currencies and a wide commercial abundance on the part of banks and payment systems, this sector became a trend and gained the first place among investors.
As awareness of cryptocurrencies, NFTs, and the technology that supports them increases, it is likely that more people and businesses will begin using these assets. This could lead to greater acceptance by both businesses and individuals, thereby increasing the demand for cryptocurrencies.
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