Crypto Crash 2022: Strong Investors Prevail

Crypto investment can be a great idea if you accept the fact that it is a “high-risk gamble industry” which you can pull off, but at the same time, there is a high chance that you can lose all your money. If you are planning to invest in crypto, you must get out of the media bubble, know the facts, and not rely on the hype.

Understanding Cryptocurrencies

The knowledge of investing in the cryptocurrency industry is very important. It is crucial to do your research and understand the market trends before investing in a particular asset. In the present crypto bear market, there have been a lot of negative perspectives coming from industry leaders. However, is the crypto market on the loose, or is there something bigger waiting for the investors? According to a partner of venture capital firm Atomico, Irina Haivas, “This year’s difficult economic environment has weeded out some of the tourists of the crypto industry leaving behind a stronger set of businesses”.

Also Read: Global Investor’s Perspective on Crypto Winter 2022

What’s Positive About the Crypto Crash 2022?

With the crypto winter 2022, the hype that started in November of 2021 gradually ended. During the series of shockwaves that the industry went through since the beginning of 2022, the investors were only negative about the market. At the Bloomberg Technology Summit, Haivas quotes, “it is not that hype is gone”. This means that any crypto company investing in the market is alert regarding the market situation. These companies will now need to develop something that is more sustaining rather than the speculations surrounding it.

The statement was agreed upon by the head of a fintech startup Revolut Ltd, Mr. Edward Cooper. Several crypto companies emerging without a practical business model made the industry euphoric, and insubstantial. He continues that the tide takes away all the tourists, leaving behind the companies with strong business models. Thereafter, staying for a longer time in the game. Copper suggested that the trading volume of crypto assets among the customers of Revolut Ltd has decreased. However, the number of new customers signing into the account is a lot higher than it was in 2020. This is because the people entering the market consider cryptocurrency as a “mainstream asset”.

Cooper says, “The regulations of cryptocurrencies have been beneficial for the business of Revolut Ltd, as it makes the conventional businesses partner with them”.

Also Read: Generation-wise Crypto Investment Strategy

In Conclusion

Governments and banks in almost every country have warned investors to avoid stating crypto as an “asset class”. Several industry leaders, like Warren Buffet, say “If he gets all the bitcoins in the world at $25, he will not buy it”. Among all the negativity in the crypto bear market, the trading exchanges observe steady trading activities among investors. Now that the crypto tourists are wiped out, the crypto industry has come out stronger than before with a viable business vision.