Around 1 billion people in the world use cryptocurrencies, which shows how quickly it’s proliferated since a decade ago. Only 24% of Americans say they don’t understand how cryptos work, so there’s a good chance you do.
However, this only scratches the surface. If you want to invest in these digital currencies, you also need to grasp what the trends are. If you don’t keep your ear to the ground, then you can end up making some bad decisions.
To help you out, we’ve compiled a list of seven cryptocurrency trends you should be aware of in 2023.
1. More Regulations
This might sound like a bad thing, but new regulations will actually be a positive step forward for cryptocurrencies. Currently, there’s lots of muddiness when it comes to reporting your crypto assets, which leads to improper reporting on taxes. As a result, you might feel uneasy about reporting or not reporting your crypto holdings.
It’s expected that new regulations will clear things up and make it easier to comply with tax regulations. This ensures that everything is above board and reduces the number of illegal transactions too.
By raising the legitimacy of crypto investments, this will make it more viable for people to get in on the action.
2. Crypto Casinos Are Growing
Online gambling’s been a hit with people, seeing as you can place wagers from anywhere you wish, as long as you have an internet connection. It makes it more convenient to play casino games for those in more rural areas too.
Now they’re bringing gambling to a whole new level by allowing cryptocurrencies as payment. This lets players have anonymity, as there are no bank accounts, addresses, full names, etc., tied to cryptos. In addition, it gives them more security through blockchain transactions.
So if you’ve already invested in cryptos and are wondering how to spend your coins, you can become a patron at one of the many online casinos that have started accepting cryptocurrencies.
3. Bitcoin Is Still Top Dog
You might already know that Bitcoin is the father of all cryptos, so it’s probably not surprising to hear that it’s still the “best” cryptocurrency. Pretty much all of the crypto market is based on how Bitcoin’s doing; if it falls in value, then you can bet that the others will too.
However, it’s not as strong as you might think. In the last few years, it’s faced some challenges and has been under pressure, and that’s probably not changing in 2023.
Of course, Bitcoin’s surprised many by bouncing back significantly after some price crashes. In fact, some experts believe that it can still go beyond $100,000 per coin in the next few years. But we’d take that optimism with a grain of salt.
The important thing is to keep your ear to the ground to see how the health of Bitcoin goes, and not to go on hearsay.
4. NFTs Will Still Be Around
Last year, NFTs exploded in popularity; wherever you looked, it seemed like people were peddling cartoon gorillas tied to blockchains. Eventually, the hype died down, and it seemed like NFTs went away.
The reality is, the NFT market is still around! Instead of dying out, it’ll actually keep rapidly growing in 2023. So if you felt like you missed out on the hype, then not to worry, as it’s a great time to get into the market.
What’s great is that NFTs will go beyond digital art. There are talks of using NFTs for other purposes, such as video game items and virtual real estate.
5. More Green Energy
Recently, it came to light that crypto mining takes an immense amount of resources. There were concerns of it propelling climate change, and some dissenters wanted cryptocurrencies to be completely eliminated.
As a result, there have been conscious efforts to adopt green energy when possible. For example, some blockchain networks have switched to more environmentally-friendly consensus mechanisms. In addition, companies are trying to switch to renewable energy as a source of power.
As more cryptos pledge to be carbon neutral by a certain date, this pushes more to follow in their footsteps. This makes it more appealing for people interested in sustainability.
6. Ether Could Outperform Bitcoin
On that note, did you know that Ether (the second-place crypto) outperformed Bitcoin in 2021? This was thanks to NFT sales, as they’re run on the Ethereum blockchain.
In addition, Ethereum changed its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS). This means that coins are no longer mined, and this process has a much smaller carbon footprint.
When compared to Bitcoin, Ethereum seems to have a lot of plus points. So it’s very possible it could outperform the top dog, and it can be worth your time to buy ETH.
7. Meme Coins Will Die Out
Something that probably will die out is meme coins. Yes, Dogecoin has been hugely successful, but that’s most likely an anomaly.
Any meme coins that arise this year will seem to do well at first, but you can bet they’ll fade into obscurity soon after. Therefore, it may not be a good idea to put a large sum down on any meme coins.
Follow These Cryptocurrency Trends Carefully
Knowing the current cryptocurrency trends will make you wiser than the average crypto dabbler.
But do remember that while this allows you to make somewhat smarter decisions, it’s not guaranteed to pay off. The nature of cryptocurrency is volatile, so you need to be prepared for things to go completely opposite of what you expect. When you have this mindset, it’ll make any losses you suffer sting a little less.
Otherwise, have fun buying cryptocurrency. You never know if you’ll strike it rich soon!
If you’d like to invest in cryptocurrency, then keep reading our blog page for more inside info.