From 2018 to 2023, our list of predictions shows that Bitcoin will have to overcome several challenges before it can truly succeed.
Related: The 10 Biggest Ethereum Stories of 2022
The Bitcoin Prediction from 2018 to 2023 came true
Obi Nwosu, CEO of Fedi, and a board predicted in 2020 that while Bitcoin will experience challenges from 2018 to 2023, it would finally succeed after that time frame. It seemed obvious to me that this would be a pivotal period for digital currency, even though I am not a prophet. We saw a “cleaning” of the cryptocurrency ecosystem after this year’s weak market and an opportunity to refocus on its primary goal of monetary independence.
The snowball was ignited in the scorching heat of July by the Celsius bankruptcy, the first sign that the ecosystem we were developing was unhealthy. The goal of digital currency was not to imitate a centralized financial system using a decentralized currency. The goal of Bitcoin was not to imitate a centralized financial system using a decentralized currency.
This once again brought attention to the existence of two conflicting realities for cryptocurrency: “regulated” Bitcoin, which is concerned with price and is committed to regulatory systems and adoption through speculation, and “real” Bitcoin, which is rising from the ground up and focuses on the value Bitcoin can bring to the world.
Due to my realization that exchanges like ours were frequently devoted to keeping their users locked in the regulated Bitcoin world, I sold Coinfloor in 2021. As we approach the end of 2022, the FTX crash, the regulatory aftermath, and the losses suffered by so many innocent individuals have cruelly illustrated the harmful effects of this.
Real Bitcoin, on the other hand, is thriving in the Global South and post-Soviet nations, where innovation is dispelling the myth that Bitcoin has no practical use. For instance, a new type of frontier town is emerging that combines communal custody, internet connectivity, bitcoin mining, and renewable energy.
Real Bitcoin adoption, as I have long anticipated, can only come from the general public, and Fedimint and Fedi aim to play a significant role in achieving hyperbitcoinization. The most cutting-edge technology will translate and amplify the most fundamental kind of protection, which is people cooperating.
The Crypto Winter: How Long Will It Last?
Cryptocurrency has experienced boom and bust cycles before. Looking at the development of Bitcoin’s price, the benchmark for the sector demonstrates the point:
- BTC plummeted 84% to $3,000 in 2018 after a spectacular rise to around $20,000.
- BTC changed course in November 2020, rising to about $17,000 before soaring even higher.
- BTC saw a 50% decline in May 2021 before rising to all-time highs of about $69,000 later that year.
Since digital currency was just created in 2009, during the Great Recession, bear markets in the larger financial sector have not historically accompanied declines in the cryptocurrency market.
From 2009 until 2021, the financial markets experienced a protracted bull run that was only briefly halted by the Covid-19 pandemic slump in early 2020. This year’s stock market opening was higher than a startling seven times from the lows of March 2009, which occurred just two months after the birth of Bitcoin.
You must comprehend how long sustained high inflation will maintain the Fed’s aggressive monetary policy position to respond to the question of how long the crypto winter will persist. The only things that can assist cryptocurrency right now are decreasing rates and easing inflation.
Forecast for Bitcoin in 2023
The price of bitcoin is roughly $16,800 towards the end of the year, down from about $19,500 on the eve of the FTX crisis. BTC has additional room to fall if the effects of FTX’s bankruptcy continue to spread. Due to FTX, major financial institutions can temporarily withdraw from cryptocurrency.
Another run downhill to the $10,000 mark for BTC in 2023 may not be too far-fetched given that wider markets are suffering and crypto’s reputation has been severely damaged by the crises and scandals of 2022.
The cost of producing Bitcoin is another tool used by strategists to predict how low prices may go. Although the production cost currently stands at $15,000, it is likely to revisit the $13,000 low seen over the summer months.
Forecast for Ethereum in 2023
Ethereum normally moves in the same direction as Bitcoin, at least up until now.
Some analysts believe that the price movement of the pair may soon decouple after the Ethereum merging in September 2022, a significant network redesign for the second-largest cryptocurrency by market capitalization.
The cryptocurrency is predicted to increase by up to $2,500 during the following six months. Even if this is an extreme bull scenario, the same factors that influence Bitcoin’s price also affect ETH. For upward gains to resume, the macroeconomic environment needs to be favorable.
If it doesn’t, Ethereum will probably decline much more. Given that the price of ETH fell below $1,000 in June, it wouldn’t be unexpected if it rose back to that level during the following six months should additional unfavorable catalysts emerge.
Communities will be incredibly important in determining the direction Bitcoin takes in the upcoming years. Although bitcoiners are already empowering communities all across the world, we must all work together to win this war. We will undoubtedly be successful in our endeavor, as Obi Nwosu stated in the 2020 piece, and as a result, I am more persuaded than ever that Bitcoin will triumph in 2023.
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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice