7 Cryptocurrency Predictions for 2023 that might just come true
Consider the past year. Bitcoin was trading around $50,000, you couldn’t watch sports without seeing a cryptocurrency advertisement, and you could get rich – or so it seemed – by minting a non-fungible token (NFT) of your left nostril. All of this is to suggest that there are no crystal balls. Predictions are frequently incorrect. Trends can shift in an instant. But, after the FTX-flavored sadness of the last two months, perhaps speculating on 2023 is just what we need to clear the palate. “As we enter 2023, what happens with crypto funding in Q1 will be critical in determining whether we stay in a sustained bear market,” says Jamie Burke, CEO and founder of Outlier Ventures. On the one hand, he says “the strength of the venture market has persisted, with billions of funding still pouring into the space and high levels of capital waiting to be deployed,” and “we have seen a record number of applications in our most recent cohorts for 2022.”
1. Epic conflicts over-regulation: The exact outcome is unknown, but 2023 could be the year when the battles over regulation reach their apex. “Harsh crypto regulation will be proposed, and the community will fight the parts of it that threaten decentralization,” says Laura Shin, presenter of the “Unchained” podcast.
2. Web3 platforms continue to grow: “Larger macro downturn market conditions should hopefully shift crypto projects away from speculation and more towards utility – one major utility category simply being meaningful, fun, social experiences,” Alex Zhang, the de facto head of Friends with Benefits DAO, predicts. He expects this to lead to “more meaningful Web3 social platforms and protocols,” as well as an increase in “interoperable identity, on-chain social graphs, and crypto-abstracted social experiences.”
3. Bitcoin acceptance is truly global: Alex Gladstein, the Human Rights Foundation’s chief strategy officer, had just returned from a Bitcoin conference in Ghana when I chatted with him. “I was blown away,” Gladstein says. “I was astounded by the sheer number of Bitcoin entrepreneurs and leaders from all over the world.” He encountered individuals from Cameroon’s countryside, the Democratic Republic of the Congo, Somalia, and crisis zones. “They’re all based on Bitcoin.” “It’s truly amazing,” he adds, adding that “global adoption is probably the number one story for next year.”
4. More bleeding, additional fatalities, and more agony: “The contagion is nowhere near over,” says Cas Piancey, co-host of the podcast “Crypto Critics’ Corner.” “Companies, banks, and funds are desperately hoping the market moves past the FTX and Alameda collapse or strictly focuses on their malfeasance,” adds Piancey, but “you can’t wish away a credit crunch and exposure to bad counterparties.” We will see the closure of funds and the failure of companies that we did not predict, largely because the contagion is too vast and too difficult for us all to estimate.”
5. Perhaps a focus on living outside of cryptocurrency/bitcoin/blockchain: When asked regarding his predictions for 2023, bitcoin bull Peter McCormack, presenter of the “What Bitcoin Did” podcast, simply stated, “Real Bedford will win the league.” This is a joke (McCormack bought the squad in 2021), but it may contain the seed of a deeper truth: For many in the field, it’s good – even healthy – to focus on other hobbies during crypto winter.
6. Web3 is becoming popular: “Fashion will continue to lead the way when it comes to Web3 adoption,” says Cathy Hackl, Journey’s chief metaverse officer. “We’ll see more collaborations between Web3 personalities and consumer and luxury brands looking to experiment with new commerce models and customer touchpoints.” “With the rise of generative AI, we may see blockchain play a significant role in helping us distinguish between content created by AI and content created by humans,” Hackl adds.
7. Don’t dismiss NFTs: “The sustained high-risk appetite in NFT-funding in 2022 is a strong indicator that it will be one of the first sectors to recover next year,” Burke adds. “Over the past year, we’ve already seen significant NFT investments from major Web2 brands [Starbucks and Disney] and across Web3…” This is not going to cease in 2023. NFTs will continue to attract brands.”