Finance

Crypto winter is coming to an end. But it leaves a “restricted” market

Expert Markus Thielen speaks to AGI outlining possible future scenarios in a market that has seen the death of around 12 thousand cryptocurrencies in 2022

AGI – The winter of cryptocurrencies is leaving behind a much “smaller” world than many imagined. If it is true that digital, as immaterial, has always been synonymous with boundless prairies that are almost impossible to fill, the reality is proving to be very different.

And to understand what this means, just remember that it is estimated that around 12 thousand cryptocurrencies will have died in 2022 (to date Coinmarketcap lists just over 10 thousand). Currencies in some cases born almost for fun that today are worth nothing or almost nothing (just to give an example Hit Coin is listed at the time of writing this piece at 0.00000000001 dollars), virtual currencies that have had volumes equal to zero for months or cryptocurrencies like Save the Bank which currently have a market capitalization of just over a thousand dollars. Or even currencies that have more of a gambling flavor like Pepe (no change in the last year but a +2500% in the last 60 days)

And so here is the first surprise for a scenario that in the golden age saw ICOs (Initial Coin Offerings) profitable almost every month, if not every week: “it is relatively easy to create a new cryptocurrency and this is why there are so many of them . But just like currencies like the US dollar, euro, British pound or Japanese yen, there are few that really matter , and I expect this to show up in the cryptocurrency market.”

Markus Thielen, author of “Crypto Titans: How trillions were made and billions lost in the cryptocurrency markets”, head of Research & Strategy at Matrixport, told AGI.

Markus Thielen 
Markus Thielen
 

In the boundless virtual prairies, will there be room only for Bitcoin, Ethereum and a few others? Possible. Indeed, almost certain. And this could be good news if you look closely.

She’s certainly not the only one. The other good news is that crypto winter is ending. “Yes, because inflation has reached its peak and this will lead the US central bank to cut interest rates – she explained – and this in turn will provide greater liquidity to the market. I also expect new improvements and new use cases for cryptocurrencies to be developed, which will give rise to a new cryptocurrency bull market.”

The game is certainly not over and a rapidly evolving market by definition could still reserve many surprises. “At the beginning it was earned with extraction (mining), then with the advance purchase and holding of cryptocurrencies, then it was earned with the creation of Bitcoin ATM and finally it was earned with the creation of cryptocurrency exchange platforms – he continues – more recently, we’ve seen NFTs where artists had profit margins close to 100%. Each of these categories has turned some cryptocurrency enthusiasts into millionaires, if not billionaires.”

And many, many others from cryptocurrency enthusiasts to slightly poorer enthusiasts, it must be added.

Related Posts

Are NFTs Dead? According to one study they are worthless

What value do NFTs have in the current market? Well, a study comes up with an answer, and it’s not a pleasant one. Discover the Crypto Sentinel Community A study conducted by experts has sparked a series of surprising reactions...

Over 1,000 cryptocurrencies are already dead

According to data from two platforms, Coinopsy and DeadCoins, over 1,000 cryptocurrencies have already died.Coinopsy provides daily reviews of various cryptocurrencies, including those it considers “dead”. According to the site, a token is dead when at least one of the...

A visual analysis of 10 years of dead cryptocurrencies Coins

The history of cryptocurrencies has its origins in the affluence of the 1980s, a time when financial culture was glamorized in films likeLuoghi di scambioeWall Street. In 1983, cryptography pioneer David Chaumricerca pubblicatathat laid the foundation for electronic payments, blockchain,...