Crypto Christmas Special: Unpacking 2023 and Looking Ahead

Yet another Crypto Christmas special for our NewsBTC team as we head into 2023.

In this festive chat, Sheraz Ahmed takes us on a journey through the history, current state, and future possibilities of crypto. Get ready for a Crypto Christmas Special!

BTC’s price trends to the upside on the daily chart but records some low timeframe losses on the daily chart. Source: BTCUSDT on Tradingview

Welcome to another Crypto Christmas special with our team at Blocking.net! As we bid farewell to 2023, it’s time to reflect on its ups and downs and gain insights into what the future might hold for crypto and DeFi investors. Like last year, we have gathered a group of experts who will take you on a journey through the past, present, and future of the crypto market, just like Charles Dickens’ “A Christmas Carol.” So, get ready to unwrap 2023 and discover what lies ahead in 2024.

Crypto Christmas with STORM: Is a Bitcoin ETF Still on Your Wishlist?

In today’s edition, we had the pleasure of chatting with Sheraz Ahmed, Managing Partner at blockchain solutions provider STORM and the founder of Decentral House. Ahmed, being present at some of the most important crypto events in 2023, has a unique perspective on the industry and its potential catalysts. During our interview, we discussed the downside of approving a Bitcoin spot Exchange Traded Fund (ETF) in the United States and why the crypto space might not be ready for another bull cycle. Here’s what he had to say:

Q: Our team coincided with you at several crypto events this year. Where do you think most of these events overlap, and what do you believe has been overlooked in 2023?

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Ahmed: Switzerland, Europe, Dubai, Singapore, and Rio de Janeiro were among the hotspots for crypto events this year. However, I believe we are still too early for the next cycle. While there have been significant improvements in infrastructure, such as custody, wallets, exchanges, and stablecoins, the business models for decentralized applications (Dapps) have not evolved. We must be cautious to avoid entering another vaporware cycle and risking ourselves with worthless coins and scams.

Q: As crypto enters a new cycle, how does the industry differ from early 2021 and 2017? Where can investors find growth?

Ahmed: The industry has matured to some extent, although sometimes it feels like the veterans have become numb to the industry’s volatility. We are witnessing genuine interest from large institutional players in the financial, consumer, and impact sectors. However, the key challenge is converting these ideas into actual adoption. Investment in utility and payment tokens is an oxymoron, as they are not meant to be investment products and are not regulated as such. Investors should look into infrastructure plays or early-stage protocol ecosystem funds that offer a blend of equity and utility tokens.

Q: The approval of a spot Bitcoin ETF in the US seems like a significant milestone for the industry. But what’s the next frontier? Where does the industry go from here?

Ahmed: I disagree with the notion that a Bitcoin ETF approval signifies that crypto has made it to the mainstream. It simply means that bankers believe they can make money from our industry. While it may temporarily boost prices and attract more attention, we should be cautious. When heavy artillery comes in, they have the power to crush everything in their path. The industry needs to be prepared for the consequences.

In 2023, we established Decentral House, an innovation center focused on blockchain-based applications that provide the infrastructure to bring ideas to life. By equipping ourselves with the right tools and guidance in the Web3 space, we can navigate the crypto landscape and find success. Let’s work together to create an industry built on trust and innovation!

Additional Questions and Answers:

Q: What are the challenges facing Dapps in the crypto industry?

Ahmed: The biggest challenge for Dapps is the lack of business model innovation. While infrastructure has improved, Dapps need to find sustainable ways to monetize their platforms to attract users and investors. Many Dapp projects have failed to achieve widespread adoption due to this issue.

Q: How can investors navigate the saturated market of infrastructure plays?

Ahmed: With the market becoming increasingly saturated with infrastructure projects, investors should focus on projects that offer unique value propositions and have strong partnerships within the crypto ecosystem. Additionally, considering early-stage protocol ecosystem funds that combine equity and utility tokens could be a promising investment strategy.

Q: Should investors be concerned about the impact of heavy institutional involvement in the crypto industry?

Ahmed: While institutional involvement can bring more attention and capital to the industry, it also carries the risk of centralized control and potential market manipulation. It is crucial for investors to stay informed, diversify their portfolios, and keep a close eye on market trends and regulatory developments.

Looking Ahead: Trends and Investment Recommendations

As we venture into 2024, it’s important to consider the future of the crypto industry and the potential trends that may emerge. While no one can predict the future with certainty, analyzing the current landscape can provide insights for investors and enthusiasts. Here are some trends to keep an eye on:

1. Regulation: Regulatory frameworks for cryptocurrencies and DeFi will likely continue to evolve, bringing both opportunities and challenges. Investors should monitor developments and adapt their strategies accordingly.

2. Interoperability and Layer 2 Solutions: In an effort to solve scalability and high transaction fee issues, the adoption of interoperability solutions and Layer 2 protocols is expected to increase. Projects like Polkadot, Cosmos, and Ethereum’s Layer 2 solutions may gain significant attention.

3. NFTs and Metaverse: The non-fungible token (NFT) market has witnessed tremendous growth in recent years. As the metaverse gains more prominence, NFTs linked to virtual assets and digital identities could become increasingly valuable.

4. Sustainability and ESG Considerations: Environmental, Social, and Governance (ESG) factors are gaining importance in the crypto industry. Investors should prioritize projects that address sustainability and have a positive social impact.

5. Decentralized Finance (DeFi) Evolution: DeFi will likely continue to evolve, offering new and innovative financial products and services. Investors should explore opportunities within the DeFi space, carefully assessing the risks and potential rewards.

Remember, investing in the crypto market carries risks, and thorough research is essential. Consulting with a professional financial advisor can help you make informed decisions based on your risk tolerance and investment goals.

References:

• A Crypto Christmas Special With Jlabs Digital: Past, Present, And Future
• A Crypto Christmas Special With Material Indicators: Past, Present, And Future
• Marathon Digital Becomes a Traded Stock of the Day with $327M Volume
• BTC Price at $43K, Smart Money Bets Big on Bitcoin Ahead of Potential ETF Approval
• Solana Up 95% in December, AVAX and INJ Near $100 – What’s Next?
• Best Crypto to Buy on December 28! Bitcoin SV, Aave, Arbitrum
• What to Expect from Bitcoin in 2024

🙌 Share Your Thoughts and Spread the Cheer!

What are your thoughts on the future of cryptocurrency and DeFi in 2024? Have any questions or concerns? Share them with us in the comments below! Let’s continue this Crypto Christmas conversation and spread the cheer on social media. 🎉💻🚀

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