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HomeNewsBusinessCryptocurrency had a turbulent year with collapsed exchanges and sharp price declines...

Cryptocurrency had a turbulent year with collapsed exchanges and sharp price declines Next, what?

The cryptocurrency ecosystem saw a difficult year in 2022 with the price of Bitcoin falling, non-fungible token sales failing, and the demise of numerous sizable crypto startups, but one investor told Fox News that the technology powering the industry has untapped potential.

Despite Lonsdale’s confidence, the value of Bitcoin, the most popular cryptocurrency, has fallen from about $48,000 per coin at the beginning of the year to roughly $17,000 today, a 65% decline. Fox Business reports that in 2022, the prices of practically all major cryptocurrencies will have decreased by over 50% annually.

Investor and Palantir co-founder Joe Lonsdale stated to Fox News earlier in December that “there is still a strong use case for decentralisation and cryptocurrency.” I believe that over time, some of this ecosystem’s products will prove to be beneficial to everyone.

In January 2022, there were around $17.2 billion in transactions involving non-fungible tokens (NFTs), which are digital assets like pictures or collectibles that are kept on blockchain. According to Dune Analytics, NFT transactions dropped to $414 million in November 2022, a 98% decline.

On November 11, FTX, formerly among the biggest cryptocurrency businesses, declared bankruptcy. Sam Bankman-Fried, the company’s founder, was extradited from the Bahamas to the United States on December 22 to answer to many allegations brought by the Southern District of New York and the Securities and Exchange Commission.

Lonsdale earlier stated that “a lot of corruption” was to blame for the failure of several crypto firms this year.

Following the FTX collapse, Binance, a sizable cryptocurrency exchange that processes more transactions than all of its rivals combined, has come under fire for its lack of transparency.

Lonsdale once remarked that “Bitcoin has done a lot of good in the world.” “It has aided individuals in obtaining funds from China, Venezuela, and Russia. It gives the financial system a greater degree of freedom from seriously bad governments.”

So while there are positive aspects of cryptocurrency over the long term, the majority of what we observed over the last three, four, and five years was a speculative bubble, he concluded.

News Summary:

  • Cryptocurrency had a turbulent year with collapsed exchanges and sharp price declines. Next, what?
  • Check all news and articles from the latest Business news updates.
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