Cryptowinter in 2023: No, It Won’t be Over Yet
By Lesia Dubenko 559 17 Jan 2023
Still thinking that the crypto winter will be over soon? The co-creator of the now-bygone Diem, a.k.a Libra, David Marcus will make you think twice. In his predictions for 2023, Marcus sheds light on the possible tendencies in the crypto industry.
The co-creator of Diem, a cryptocurrency project initiated by Facebook, and Lightspark David Marcus made an array of predictions for 2023.
In a Medium blog post, he described the challenges of the past year, including COVID, Russia’s war on Ukraine, inflation, as well as the ‘egregious’ collapse of FTX. As a result, the growth associated with COVID-fueled growth years was rendered bygone.
Still, he believes that many challenges, including climate change, will be resolved thanks to technological advances, adding that despite vilification and criticism Bitcoin mining is proving to not only be effective at regulating demand across our power grids.
Outlining the tendencies for 2023, Marcus hypothesized, among other, factors that interest rates will continue rising into the first half of the year; inflation will recede, but the risks of a full-on recession will be very high; the war in Ukraine will enter a protracted phase and is unlikely to end in 2023; 2023 will redefine how much can be done with fewer people; we will see the beginning of a Cambrian explosion of innovation in AI.
He specifically commented on the cryptocurrency and the ongoing crypto winter. According to him, we won’t exit this “crypto winter” in 2023, and probably not in 2024 either.
“It’ll take a couple of years for the market to recover from the abuse of unscrupulous players, and for responsible regulation to come through. Consumer trust is also going to take a few years to rebuild, but ultimately I believe this will prove to be a beneficial reset for legitimate industry players over the long run,” he wrote.
Marcus added that years of greed in crypto will soon come to an end, meaning that all projects looking to create a token out of thin air and make millions are over, adding that he believes that the most promising innovations will be made in the areas of payments, asset securitization, Defi, zero-knowledge applications including proof of reserves and layer 1 scaling solutions, and a renewed development energy and interest on the Bitcoin network.
Previously, Gagarin News looked back at the highlights of 2022.