Bitcoin has been making waves ever since it was first thought up. Recently, the prices of Bitcoin have plummeted quite a bit, recently falling below their December 2020 low of $20,000 per Bitcoin, causing significant coverage by the media. This has shaken up the crypto world significantly, with many wondering if Bitcoin, and by extension blockchain and crypto in general, are worth the trouble.
Today, we’ll be looking over whether or not the Bitcoin crash is representative of the crypto market as a whole, and if there’s still value left in crypto and blockchain technologies. We’ll also discuss if DEXs like Blueshift could replace our banking system.
Is The State of Bitcoin Representative of Crypto As A Whole?
The cryptocurrency market is known to ebb and flow. This is due to many reasons, one of which is adoption time- a term that signifies how much it takes for a technology to be adopted by the general public. While cryptocurrencies aren’t quite there yet, their growing adoption rate leads to investors speculating over the future long-term value of cryptocurrencies.
When these speculations are too high for a given period, investors panic and sell their assets off, lowering their prices. Because of this, prices of specific cryptocurrencies, and especially Bitcoin as the poster child of crypto, tend to be unstable.
It’s well-known that the prices of many cryptocurrencies are tied to the price of Bitcoin, so when Bitcoin’s value falls, so does there. However, this doesn’t quite paint the whole picture, as certain cryptocurrencies, especially altcoins like Polygon and 1Inch are experiencing a time of rampant growth.
This is because, despite the way it’s occasionally painted by mainstream media, different coins serve different purposes. While Bitcoin, which is mainly used to send money or as an investment asset, might be falling, an altcoin like Gala Games used mainly for gaming, is skyrocketing in value. This alone is enough to show that the price of Bitcoin dropping is simply not indicative of the entire industry.
Will Blockchain tech build our future?
Although blockchain technologies have had a rough ride from the get-go, with many financial institutions claiming they would simply be a fad, their adoption rate has continued to increase. Whether this be using Bitcoin to securely and anonymously pay for a VPN, or playing a play-to-earn game online with friends, blockchain is making its way into our everyday lives.With that being said, blockchain is still far from being nigh-universally adopted in the same way the internet or cell phones are. Because of this, and the technological hurdles we need to overcome, progress can appear stagnant at times- much the same way it did on the internet before the .com bubble burst.
Web 3 is considered by many experts to be an inevitability- more of a when than an if. DEXs, for example, have already started to make headway in eliminating centralized banking from many people’s lives.
Web 3 projects have even garnered the attention of FAANG, with the Metaverse being built, and Google participating in crypto more and more heavily. This shows that the largest Web 2 companies in the world have understood the importance of the blockchain to our technological future.
Will DEX’s take over banks?
It doesn’t take long after going to your closest bank to wait in line for half an hour in order to perform a routine transaction to understand why people are slowly getting tired of traditional banking. Banks will sometimes charge a fee to do a process online, while a similar process will have a charge attached to it when done in person.
Outside of this, the centralization of banking makes it so that banks get a lot of favor from the government. Due to the way fiat currencies are tied up in central banks, they’ll get bailed out first in times of crisis. On the more troublesome end of the spectrum, banks are rampant with fraud and money laundering, with many of them ignoring KYC(know-your-customer) regulations.
The most promising alternative to this is DEXs(decentralized exchanges.) These platforms solve the biggest issues people have with banks. Where your bank can often hide charges and profit off of your savings, most decentralized exchanges are completely transparent. These entities completely remove banks from asset exchanges. In case of an authority being necessary, the exchange is handled via smart contract, with no 3rd parties involved.
DEXs like Blueshift are also attempting to help investors create high-quality, resilient investment portfolios without ever having to interact with a bank. This makes investing more convenient, as all you need is an internet connection and a crypto wallet. It’s also more secure, as DEXs like Blueshift are extremely strict when it comes to following KYC protocols, and there’s no room for human corruption, as exchanges are handled through a smart contract.
Join us tomorrow for an exciting Blueshift Community Roundup!@ChuckCryptoG as a host will be joined by Nick from @PoolLighthouse, Beatrix, and Christian from @bio_pool as Guest speakers!Monday, 11 July, 9 PM CETSet a reminder below 🔽https://t.co/36ZT4eGIQ6#SPO $BLUES pic.twitter.com/PaNB6RgwQw
— Blueshift (@blueshiftfi) July 10, 2022
Closing Words
While the dropping price of Bitcoin has certainly been a blow to the crypto industry, there’s still a ton of value left in the space. Altcoins especially, are steadily growing more popular and more valuable.
The advent of Web 3 is pretty much inevitable at this point, with major Web 2 companies quickly jumping in to take their share. This alone is enough of a testament to how important blockchain technologies are to our future.
One of the biggest examples of this is the growing popularity of DEXs and the decreasing popularity of banks. With decentralized exchanges like Blueshift steadily revamping our financial space, we’re extremely excited to see what comes next.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
