2022 was rough for crypto and blockchain, but experts have hope for the year ahead in the form of a strong rebound, increased regulatory certainty, diversification, and mainstream adoption. Fast Offshore takes a dive into the state of play in 2023 and beyond.
More volatility
Crytocurrency is always going to be volatile to a certain degree. This is due to its nature as a decentralised form of transaction that focuses on the community and is not controlled by a central entity. The fact it is also relatively new also makes it susceptible to wild price swings. This is not going to change over the coming year, but we hope to see stability in some areas. Perhaps some of the more established coins will become less explosive, and the proliferation of stablecoins will provide additional options for those seeking less turbulence.
Movement away from bitcoin
It is not that bitcoin will become obsolete; instead, other options will increase in prominence. Ethereum, Tether, BNB, USD Coin, Cardano, XRP, Binance USD, and Binance Coin will continue to grow in popularity, joined by other emerging currencies. Bitcoin will likely remain the gold standard and the trendsetter, but we will see more regular crypto users diversifying and looking at other options. This will also be helped by the popularity of stablecoins and even digital currencies issued by central banks and pegged to their fiat counterparts. It is estimated there are over 21,800 cryptocurrencies in circulation as of the end of 2022, and it is inevitable that some of these will grow to take centre stage, fuelling a move away from bitcoin and towards more modern and developed alternatives. Some names to keep an eye on in 2023 include Metacade, Polygon, and Shiba Inu, amongst others.
Insolvencies, bankruptcies, and successes
The blockchain and crypto sector is still in its infancy, which means there is a lot of change, growth and development still to come. This means that some of those who set up companies and created concepts will fail or be forced to change their business model to suceed. But amongst those that fail because their idea becomes outdated or does not respond to the new demands of the sector, there will be success stories. Companies will adapt, new ideas will emerge, and the market will move forward. Uncertainty over the direction the future will take does not mean entrepreneurs should not try; rather, it means they must be flexible and forward-thinking in their approaches.
Regulatory certainty
Over the next 12 months, we can expect to see more regulatory certainty and clarity when it comes to cryptocurrency and blockchain. As governments begin to accept that digital currencies are inevitable, they will seek ways to help them coexist within society alongside fiat while reducing risks posed by financial crime. Regulators will seek to develop meaningful rules that will not hinder growth but will provide protection for users. Some countries have already taken steps to regulate the sector, starting with Malta, Germany, Singapore and the European Union, while others remain more hesitant. This year will be crucial in determining how these technologies will be approached by authorities and in which ways they can be used.
Increased adoption
As more regular people become aware of cryptocurrency and blockchain, their adoption will increase. In 2023, we expect to see an acceleration of interest in the technologies as more companies, governments and institutions start to use and accept them. This will have a domino effect; the more entities that start using them, the more people will adopt them, and the more people adopt them, the more businesses will follow suit. This trend has been developing for several years, and crypto can now be used to buy airline tickets, homes, or to gamble with. But expect to see it when you do your online shopping, renewing subscriptions, and also in your online banking and payment apps.
Fast Offshore has been working in iGaming and corporate services for over over 25 years and in blockchain and crypto since 2009. This puts us in a position where we can give you comprehensive advice on how to incorporate cryptocurrency into your online casino or betting site or to explore other crypto and blockchain options.
We can assist with licensing, incorporating and setting up all the necessary corporate structures, and helping you provide cryptocurrency payments through your site. Intrigued? Contact us today to find out.