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Is Crypto Dead and Done?

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It's a question that has been on the minds of investors and tech enthusiasts alike, especially given all the drama and articles written about it, these very negatively charged articles pop up pretty much several times every single year.

The content of this article is for informational purposes only and should not be construed as financial advice. All views expressed are those of the author(s).

While it's true that the crypto space as a whole has suffered a good amount of scandals, seen its fair share of ups and downs, and still suffers from different crypto scams, it's important to take a closer look at the current state of the industry. Despite previously being pushed as something bad and in general having a sketchy reputation among people, Bitcoin, and other cryptocurrencies have continued to grow and gain more and more popularity among investors, institutions, businesses, and the regular population.

There has also been a slight shift in mainstream media acceptance after the fact that the largest crypto projects have caught a high interest among the biggest banks, investment funds, and governments. In fact, some experts believe that crypto is just getting started and that we're still in the very early stages of adoption.

So, is crypto dead? The answer is not a simple yes or no type of question and we will get into why later on. There are certainly challenges facing the industry, however, it does look like it continues to overcome them as they show up, and as time goes by it becomes clearer and clearer that crypto's are here to stay in some form or another. In this article, we'll explore the current state of the crypto market, examine the factors that have contributed to its success and setbacks, and provide insights into what the future may hold for this exciting and rapidly evolving industry.

Understanding why crypto is not dead

If you're trying to understand why crypto isn't dead, it's essential to look at the aspects that include and contribute to its persistence, growth, history, value, current market players, and use cases. Mostly it can be summed up within the market players who have continued to engage, invest, and innovate in the crypto space.

The key market players are shaped by a diverse and vibrant ecosystem of different entities, each playing an important role in its growth and evolution. This includes banks, investment funds, traditional corporations, specialized crypto companies, individual participants, the cryptocurrencies themselves, and a country. Together, they weave a complex network that drives the market's fluidity, innovation, and volatility. Here's a deeper look into the key market players:

Banks

Banks are increasingly engaging with the crypto space through various services and products. Whether it's investing in crypto and crypto-related businesses, or integrating blockchain technology into their existing financial systems, banks have started to recognize the huge and still a bit untouched asset class that lies in front of them, this has led to a dilemma and banking crisis on crypto and how they should deal with it.


Here are some high-profile banks that are in some way invested in the cryptocurrency industry:

  • Goldman Sachs
    Goldman Sachs is bullish on crypto's and has made OTC trades and is currently holding Bitcoin in its portfolio, Goldman Sachs has also invested in the future of cryptocurrencies by investing in crypto firms and blockchain technology.
     
  • Morgan Stanley
    The first big U.S. bank that offers access to Bitcoin funds to its wealthiest clients who has a minimum of $5,000,000 USD allowing them to trade Bitcoin for up to 2.5% of their total net worth, this limit is excused with the high price fluctuation crypto assets can have.
     
  • CitiGroup
    Has formed a "Digital Asset Unit" This unit will be a part of its wealth management division "Citi Global Wealth", and the Digital Asset Unit will have its primary focus on crypto's and blockchain technology.
     
  • Wells Fargo
    Wells Fargo (WFC) believes that cryptocurrencies have gained stability and viability as assets and are now offering cryptocurrency exposure for their rich and qualified clients through professional funds.
     
  • Barclays
    One of the biggest banks in the United Kingdom, the bank does not offer crypto trading or buy/sell features directly, they do however allow U.K. customers to transfer funds between their Barclays account and third-party FCA-licensed cryptocurrency exchanges. Barclays has also invested in a couple of crypto-related projects like Coppers and Elwood Technologies.

Crypto Companies

Crypto companies are the leaders in innovation within the industry. These organizations range from payment networks to cryptocurrency exchanges to blockchain technology providers. They not only offer essential services that enable buying, selling, and holding cryptocurrencies but they also push the boundaries of what's possible within the field. Their influence is central to driving and inspiring new technological advancements.

Traditional Companies with Cryptocurrency Involvement

  • Visa
    Visa has endorsed crypto and incorporated it into its payment system, facilitating various cryptocurrencies, and are now offering items such as crypto credit cards.
     
  • Mastercard
    Mastercard has shown support for cryptocurrency by integrating it into its payment network. Supporting a wide range of cryptocurrencies and allowing for products like crypto credit cards.
     
  • PayPal
    PayPal has integrated full support for a range of cryptocurrency assets within the PayPal App allowing users to Buy, Sell and Transfer funds, marking a significant increase in accessibility, PayPal has also created its own U.S backed stablecoin named PYUSD.
     
  • MicroStrategy
    An enterprise analytics and mobility software company, it gained significant attention in the crypto space for its massive Bitcoin purchases as a primary treasury reserve asset.
     
  • Tesla
    Tesla bought and sold Bitcoin worth billions and briefly accepted Bitcoin as payment for its Telsa Vehicles, and at the time the CEO Elon Musk openly talked about accepting Dogecoin as a future payment option.
     
  • Square
    Led by CEO Jack Dorsey, Square has shown significant interest in Bitcoin, integrating it into its Cash App and holding it on its balance sheet.

Modern Companies with Exclusively Cryptocurrency Involvement:

  • Coinbase
    An American company Founded in 2012, Coinbase is one of the most popular cryptocurrency exchanges in the world. Coinbase provides a platform for buying, selling, transferring, and storing digital currency.
     
  • Binance
    One of the largest and most influential global cryptocurrency exchanges based on trading volume. Binance offers a wide variety of services, from spot trading to futures, and has its own cryptocurrency called Binance Coin (BNB).
     
  • Bitfinex
    Bitfinex is a major cryptocurrency exchange that is known for its advanced trading features and wide support of crypto's.
     
  • BlockFi
    A financial services company focused on offering interest-bearing accounts for cryptocurrencies, as well as cryptocurrency-backed loans.
     
  • Chainalysis
    A major blockchain data analytics company that helps governments and private sector companies detect, track, analyze, and prevent illicit use of cryptocurrencies.
     
  • Ripple Labs
    The company behind the XRP ledger and XRP cryptocurrency. Ripple Labs focuses on enabling secure, instantly, and nearly free global financial transactions.

Entrepreneurs/Visionaries/Innovators

Some of the most prominent entrepreneurs, visionaries, and innovators that are calling out blockchain and cryptocurrency for their incredible value:

Elon Musk
A South African Business Magnate, Entrepreneur, Visionaire, Engineer, and Investor. Elon Musk is the CEO and chief technology officer of SpaceX, CEO and product architect of Tesla, Inc., owner, chairman, and CTO of X Corp., founder of the Boring Company, a co-founder of Neuralink and OpenAI, he believes in digital assets like Bitcoin and Dogecoin.

Steve Wozniak
An American Technology Entrepreneur, Electronics Engineer, Computer scientist, Programmer, Philanthropist, and Inventor, Steve Wozniak, or "Woz" is the co-founder of Apple he believes in Blockchain and Bitcoin technology and is generally impressed by its decentralized nature, features, and use cases

Jack Dorsey
An American Internet Entrepreneur, Philanthropist, and Programmer who is the CEO of Square and previously CEO and co-founder of Twitter. Jack is a loud BItcoin advocate who believes strongly in Bitcoin and its value as money

Peter Schiff
An American Stock Broker, Financial Commentator, and Radio Personality who shill investments in Gold and Silver and historically has been a major Bitcoin and Cryptocurrency critic. However, Peter Schiff now uses Bitcoin Ordinals as product validation for a series of 50 prints named Golden Triumph.

Gold Bug Peter Schiff Learns Bitcoin Holders Won't Sell at Any Price


 

Asset Managers

Investment funds, both traditional and those dedicated explicitly to crypto, are pivotal in injecting capital into the crypto landscape. They manage large portfolios, often including a mixture of cryptocurrencies. Their participation in the market offers liquidity and fosters confidence among retail investors. Additionally, the strategies adopted by these funds often set trends and can significantly impact market dynamics.

  1. Blackrock
    The world's largest investment company managing nearly $10,000,000,000,000 in assets, Blackrock has applied for a Bitcoin ETF at the S.E.C., besides wanting to sell paper Bitcoin Blackrock has also invested in two Bitcoin mining companies, Marathon Digital Holdings, and Riot Blockchain.
     
  2. Vanguard
    The world's second-largest investment company managing nearly $8,000,000,000,000 in assets, shows a huge interest in the crypto space by investing more than $500.000.000 in crypto mining companies.
     
  3. Fidelity
    One of the world's largest investment companies managing nearly $5,000,000,000,000 in assets, Fidelity has applied for a Bitcoin ETF at the S.E.C., besides wanting to sell paper Bitcoin Fidelity has launched its own digital assets platform where users can Buy, Sell and trade crypto's.

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The People

The individual participants, or "the people," are the core that drives the crypto world, without them bitcoin would never have been where it is and the same goes for the rest of the crypto industry. Their collective actions often set the pulse of the market. Whether it's through community-driven projects, influencing the popularity of certain cryptocurrencies, or engaging in discussions, the people's role in the crypto ecosystem is indispensable. Their decisions, speculations, and innovations directly affect market trends and can spur or impede the growth of the industry.

Here is a list of benefits the people gain from crypto

  • Decentralization
    Bitcoin operates on a decentralized network, meaning no central authority controls it. This ensures that individuals have full ownership of their assets without the influence of third-party intervening.
     
  • Inclusion
    Cryptocurrencies provide financial inclusion to unbanked populations around the world, allowing them to easily participate in the global economy.
     
  • Transparency
    Thanks to the public ledger, all transactions are visible, making it harder for corruption or fraud to go unnoticed.
     
  • Security
    The cryptographic techniques used in blockchain ensure that crypto transactions are securely sent and received. Once a transaction is added to the blockchain, it is next to impossible to alter.
     
  • Borderless
    Cryptocurrencies can be sent and received anywhere in the world, and transactions can be completed faster than traditional banking systems or remittance services.
     
  • Innovation
    The crypto sector provides many benefits and opens up a lot of potential in different industries like Financial Services, Supply Chain and Logistics, Voting Systems, Gaming Industry, Publishing Industry, Collectibles, and Verification of Intellectual Property.
     
  • Sovereignty
    Cryptocurrencies give individuals the ability to have complete control over their own money, without the need for intermediaries to take decisions in their transactions.
     
  • Privacy
    While many cryptocurrencies, including Bitcoin, are pseudonymous rather than anonymous, they can offer more privacy compared to traditional financial transactions, where banks and other entities have access to transaction details.
     
  • Programmability
    Cryptocurrencies can be programmed to create smart contracts which self-execute when certain conditions are met, opening the door to full transparency while gaining many tech possibilities, innovations, and automation for numerous industries.
     
  • Jobs
    The cryptocurrency and blockchain industry has created numerous jobs in tech, finance, law, and many other sectors.
     
  • Cheap
    For many, especially in international transfers, the fees for sending cryptocurrencies are much lower than the traditional banking systems or money transfer services.
     
  • Autonomy
    Cryptocurrencies empower individuals to have full autonomy over their finances, giving them the freedom to manage, transfer, and secure their wealth as they see fit.
     
  • Censorship Resistance
    Cryptocurrencies can't be easily shut down by governments, ensuring that people can send and receive money even in places where traditional banking or certain financial services are restricted or banned.

Cryptocurrencies Themselves

Cryptocurrencies are the core components that provide full accessibility, whether it be Bitcoin, Ethereum, Solana, Cardano, Polkadot, Tezos, Avalanche, XRP, or any one of the other thousands of altcoins. Their underlying technologies, market capitalizations, and communities reflect and influence the state of the market, with individual cryptocurrency successes, failures, and ups/downs.

Understanding why crypto is dead

To understand why crypto is dead, sometimes, it's important to look at the possible causes that could have led to this perspective. The bear market and the market crash that comes after a Bullrun has definitely taken a toll on numerous crypto users. With the market cap of digital currencies like Bitcoin and Ethereum plummeting from their all-time highs many new investors are left in a situation where they have either lost a lot by selling out or sitting back with crypto that has greatly been reduced in price, these events have led to a lot of bad press, while other factors also have played a role such as the different Scandals some of the crypto firms has experienced.

Here are some key Events and Scandals that have occurred: 

Events

  1. Crypto Crashes
    When a cryptocurrency bull market is coming to an end the marketcap will fall drastically causing major price drops and a crypto bear market will follow, this will naturally create a lot of drama and negative press, and that's exactly what people outside the cryptocurrency space will remember.
     
  2. Security Breaches
    The crypto space has witnessed numerous hacks and security breaches, leading to the theft of billions of dollars over the years. Such incidents have created a trust deficit and have raised questions about the security infrastructure of many crypto platforms and shaken investor sentiment.
     
  3. Environmental Concerns
    Cryptocurrencies like Bitcoin that use the proof-of-work consensus mechanism have been criticized for their high energy consumption. This has led to debates about the environmental sustainability of such coins, especially in an era increasingly concerned about climate change.
     
  4. Mainstream Resistance
    Despite its growing popularity among certain demographics, there remains significant resistance from mainstream institutions and a portion of the public. This resistance stems from a lack of understanding, skepticism about its utility, or concerns about its association with illicit activities.

Scandals

  1. Mt. Gox Hack
    Mt. Gox was once the world's largest Bitcoin exchange. However, out of nowhere, it declared bankruptcy after an alleged theft of 850,000 Bitcoins, at the time it was worth over $450 million. This event was a major blow to the cryptocurrency market, reputation, and investor confidence and as a result, many investors lost a lot of money. 
     
  2. FTX Exchange
    FTX was one of the biggest and most popular crypto trading platforms, led by Sam Bankman-fried who was attempting to be a front runner of regulation and had met previously with Gary Gensler, however, the crypto exchange FTX went bankrupt due to mishandled user funds. As a result of the collapse of FTX, many crypto investors lost a lot of money.
     
  3. Bitconnect
    Bitconnect was a high-yield investment scheme that promised around 1% in daily returns on investment through a closed-source crypto trading bot, it eventually collapsed and turned out to be one big Ponzi scheme. It offered high returns on crypto assets through the trading bot and a high-paying multi-level referral system. causing massive losses for numerous investors.
     
  4. Terra USD
    Terra USD was a "stablecoin" pegged to the U.S Dollar, the stablecoin ended up de pegging which resulted in a total collapse that caused some financial institutions, cryptocurrency companies as well as regular investors to lose a lot of money.
     
  5. Celsius Crash
    Celsius was a digital asset lending platform that promised investors about 20% APY and a lucrative referral program, however, the platform ended up going bankrupt due to a crypto run where everyone tried to withdraw and ended up making Celsius insolvent.

Future of Cryptocurrencies

One of the biggest challenges facing the crypto market is the lack of regulation. Regulators around the world are struggling with how to classify the different cryptocurrencies and how to regulate the market to protect investors. U.S securities and exchange commission the SEC is filing several cases against different cryptocurrency projects, even tho they recently partially lost the case against Ripple/XRP.

Whether crypto is going through a crypto winter, different scandals, or volatility the price of bitcoin and other cryptocurrencies has continued to gain momentum and to this date showed us that crypto recovery happens under even the most harsh circumstances, even tho crypto prices have been taking enormous hits people still trade crypto.

Overall smart contracts, web3, dApps, DeFi, and token development continue to thrive and Bitcoin could very well be something that will be lasting even tho the Bitcoin price fluctuates a lot it has reached a significant price and it looks like those who bought Bitcoin and HODL'ed through the storms have no regrets.

Pertanyaan yang Sering Diajukan

Why is the crypto market so dead?
Like traditional markets, the crypto sector experiences boom and bust cycles, and in between those cycles the markets go sideways. Various factors, such as regulatory changes, technological advancements, global economic conditions, or shifts in investor sentiment, can influence these cycles and make them go both up and down.
Is crypto still risky?
Yes, cryptocurrencies are a risky investment for many different reasons. Factors such as regulatory news, technological developments, and market speculation can lead to sudden and significant price swings. While the potential for high returns is very real, so is the risk of big losses. Diversification and due diligence are crucial for anyone investing in crypto.
Is crypto done for good?
Crypto has been declared "dead" or "done" numerous times throughout the years, yet it has continued to show resilience and growth. There certainly are challenges facing crypto assets, such as regulatory hurdles or technological issues, but the underlying principles of blockchain and decentralization remain strong. It's too early to conclude that crypto is done for good, especially given its potential to revolutionize various industries.
Does crypto have a future?
Many indicators point in the direction that crypto will serve multiple purposes in the future. Beyond just currencies, blockchain offers solutions for supply chain management, healthcare, finance, gaming, collectibles, and more. As technology keeps advancing and adoption keeps growing, the role of crypto in the global economy could see a continued increase.
Is crypto here to stay?
Yes, the foundational technology of blockchain has proven its potential across various sectors. The decentralized nature of cryptocurrencies presents an opportunity for an alternative to traditional banking and financial systems.
Will crypto ever recover?
The crypto market has experienced multiple cycles of new all-time highs and historically, after significant downturns, the market has shown the ability to recover and reach new highs. However, past performance is not indicative of future results, and the potential for recovery depends on various factors like technological advancements, regulatory changes, and global economic conditions.
Can crypto get shut down?
It's challenging to "shut down" crypto because of its distributed and decentralized nature. While individual countries can put bans or regulations on cryptocurrency usage or exchanges, the global and decentralized design of most cryptocurrencies means they can continue to operate outside of these jurisdictions. However, stringent regulations or widespread bans could impact market sentiment and adoption rates.

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