Are Cryptocurrencies Still Worth It?

CryptoMode Daily Market Recap Cryptocurrencies

The cryptocurrency industry, in particular this year, has seen a lot of ups and downs, and we can all agree that the lows were exceptionally challenging. Bitcoin has lost over 70% of its value, and just a few days back, FTX, the second-largest crypto exchange, filed for bankruptcy after mismanaging people’s assets. This left us to wonder, are cryptocurrencies still worth investing in?

Clearly, the crypto market has seen better days. And even though most of the turmoil in the industry is due to the prevailing financial conditions, we cannot rule out greed and mismanagement of crypto platforms as significant contributors. So do you forget crypto investments and look for opportunities elsewhere? Join us as we dissect the current state of the crypto market, and follow our link for more trading guides. 

What’s Up With Crypto?

Unfortunately, there is no simple answer to this question. The world is in a recession, and many people and industries are struggling to stay afloat. And in such conditions, high-risk investments such as crypto are the first things people and investors cut down on in attempts to reduce spending and exposure. This is one of the reasons that led to crypto taking a sudden dip, and with it, many crypto platforms and even more crypto-affiliated businesses. 

Another reason, even though we don’t have much evidence to prove it, is that cases of crypto investors propping up currencies only to dump them are not unheard of and cannot entirely rule it out. 

Furthermore, recent incidents have shown that the decentralised nature of crypto and the power it gives those who own platforms is not the magical sword we thought would slay the big, bad, centralised fiat system we hoped it would be. Goons at FTX, which no longer exists, played debtor and creditor simultaneously, creating a massive house of cards that came down in spectacular fashion. 

This unraveling of events has cast a dark shadow over the industry and will have lasting implications for the foreseeable future. Investors are now wary of their crypto platforms and are wondering if the fraud at FTX was a one-of separate event or if it’s just how the industry operates. For this one reason, you’d have to be very brave to put your money in cryptocurrencies without the industry first coming out clean and letting the public in on its running. 

And finally, the last piece of the puzzle is you, the investor. The effects of the overnight millionaires that first drew many to the industry have not worn out. People are still waiting for crypto to make a comeback so they can also ride the wave to their own millions. But it’s time we accept that crypto might not be making a comeback and that that wave may never arrive. Furthermore, we also need to stop following crypto startups that promise get-rich-soon schemes because unless you’re well-versed in the industry and know how to trade, they don’t work. 

Is Crypto a Good Investment in 2023?

In the words of Andrew Bailey, the governor of the Bank of England, be ready to lose your savings if you invest in crypto. And, No. Crypto is not a good investment in 2023. There are serious concerns about how the industry operates and files its books. If there are no stricter regulations around the industry and more transparency from crypto platform operators, you should consider alternative investment opportunities.

The industry was already volatile and highly risky, but what we’ve seen this year is the stroke that finally broke the camel’s back. 

Not to sound too harsh or like we’re against crypto, far from it. We are advocates of the decentralisation of the financial system and are great fans of what blockchain technology and crypto can do and have done for the public. However, we need help with how the current system is structured and how crypto platforms seem to not care about the well-being of their customers. 

Furthermore, in a fairer and more just world, cryptocurrencies have the potential to solve a lot of the financial issues we have today. But we live in the real world, and that day is yet to come, just like crypto’s days as a good investment has passed, and it will take time for them to come back around. 

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.