Mirror Mirror On The Wall


 There is much panic and probably some political propaganda in the news as we are still in the wake of a slump in the crypto market and the fallout of the FTX scandal.  Below is a snippet taken from the latest buzz on the crypto market which captures, in my humble opinion the panic and uncertainty that crypto investors, analysts and detractors are echoing at the moment.

Following this short snippet will be a revisitation of what bitcoin is in particular and what we can expect from it despite the doomsaying and panic that has been taking the internet by storm.

Here is the snippet below:


Alarm Bells Are Ringing

– Taken From Forbes: ‘January Crypto Market’


“Bitcoin and other major cryptocurrencies finished off a disastrous 2022 on a quiet note in December, a month marked by low volatility and little price movement in the crypto market.

Markets continue to follow the drama surrounding the collapse of crypto exchange FTX, including the December arrest and extradition of FTX founder Sam Bankman-Fried. Meanwhile, FTX’s downfall has triggered renewed calls for heightened regulation of the crypto space.

Looking ahead to 2023, crypto industry experts expect more difficulties ahead for investors as rising interest rates continue to weigh on risk asset prices.

December Crypto Market Performance

FTX’s bankruptcy sent Bitcoin tumbling to new two-year lows under $15,600 in November, but Bitcoin prices stabilized in December.


Bitcoin prices increased 1% in December, finishing 2022 above $16,500. Ethereum (ETH) prices dropped another 1.4% in December to close out the year at $1,199. Bitcoin prices dropped nearly 65% in 2022, its worst annual performance since its 73% decline in 2018. Ethereum prices dropped 67.7% in 2022.


Rising interest rates triggered crypto winter in 2022, producing a wave of bankruptcies in the crypto industry and sending the prices of most popular cryptocurrencies tumbling. Among the 10 largest cryptocurrencies by market capitalization, Tron (TRON) was the best performer with a 27% decline. Polkadot (DOT) took the hardest hit with an 83.6% price decline on the year.


The total market capitalization of the global cryptocurrency market peaked at over $2.9 trillion in November 2021. As of the end of 2022, that market cap now stands at just $798 billion.


FTX Fallout Continues

The chaos in the cryptocurrency market came to a climax in November when crypto exchange FTX, which was once worth $32 billion, officially filed for bankruptcy protection. CEO Bankman-Fried resigned on Nov. 11, and FTX bankruptcy proceedings began on Nov. 22 in federal court in Delaware.


On Dec. 12, Bahamas authorities arrested Bankman-Fried at the request of the U.S. government just one day before he was scheduled to testify in front of the House Financial Services Committee.


On Dec. 13, the U.S. Securities and Exchange Commission (SEC) filed a civil fraud lawsuit against Bankman-Fried and alleged he illegally used FTX customer funds to support his hedge fund, Alameda Research. That same day, the U.S. attorney’s office for the Southern District of New York charged Bankman-Fried with eight counts of criminal fraud.


Bankman-Fried was transferred to U.S. custody on Dec. 21 after a judge approved his extradition.

Caroline Ellison, former CEO of Alameda Research, and Gary Wang, former chief technology officer of Alameda, both pled guilty to criminal charges in December and are reportedly now cooperating with federal investigations of FTX.

GlobalBlock analyst Marcus Sotiriou says the egregious behavior of FTX insiders may actually help preserve crypto’s reputation among the general public.

“It is astounding to see how fast things have folded, as just over a month ago hardly anyone knew about the fraudulent activities. I think this will benefit public perception of the crypto industry, as people can be fully assured that this collapse is due to fraud as opposed to an inherent problem with crypto,” Sotiriou says.

Bankman-Fried was released on a $250 million bond package on Dec. 23, and his next trial date is scheduled for Jan. 3.” (Forbes ‘January Crypto Market’)


My Response – An Open Case

Bitcoin, the world's first decentralized digital currency, has been making waves in the financial world since its creation in 2009. Despite its relatively short history, it has already gone through several major market cycles and has proven to be a volatile yet resilient asset. In this blog post, we will explore the future of Bitcoin and its potential impact on the global financial system.


First and foremost, it's important to understand the underlying technology that powers Bitcoin: blockchain. Blockchain is a decentralized digital ledger that records all transactions in a secure and transparent way. It is the backbone of Bitcoin and other cryptocurrencies, and it has the potential to disrupt a wide range of industries beyond just finance.


Some Advantages of Bitcoin

One of the most significant potential impacts of Bitcoin and blockchain technology is the democratization of finance. By allowing individuals to have more control over their own money, Bitcoin and other cryptocurrencies could potentially reduce the power of centralized institutions such as banks and governments. This could lead to greater financial inclusion for people in underbanked or unbanked regions, as well as provide more privacy and security for individuals' financial transactions.


Another major potential impact of Bitcoin is its ability to act as a hedge against inflation. Traditional fiat currencies, such as the US dollar, are subject to inflationary pressures due to the way they are created and managed. In contrast, the total supply of Bitcoin is limited to 21 million coins, which means that it is immune to the same inflationary pressures. This could make it an attractive store of value for people in countries with high inflation rates, such as Venezuela or Zimbabwe.


In terms of adoption, Bitcoin has already come a long way since its creation. It is now accepted as a form of payment by a growing number of merchants, and institutional investors are starting to take notice as well. In the future, we could see even more mainstream adoption of Bitcoin as a form of payment, as well as an increasing number of financial products and services built on top of the technology.


The Caveat

However, it's worth noting that there are also some significant challenges facing the future of Bitcoin. One of the biggest is scalability; the current infrastructure is not able to handle the same level of transactions as traditional payment systems such as Visa. Additionally, there are concerns about the environmental impact of Bitcoin mining, which requires significant amounts of energy. These issues will need to be addressed in order for Bitcoin to truly reach its full potential.


Conclusion: Hindsight Remains 20/20

In conclusion, the future of Bitcoin is uncertain, but it has the potential to be a disruptive force in the global financial system. The democratization of finance and its ability to act as a hedge against inflation are just a couple of the ways in which Bitcoin could change the financial landscape. However, scalability and environmental concerns are also significant challenges that need to be addressed. Only time will tell how Bitcoin will develop, but it's certainly a technology worth keeping an eye on.


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