Crypto Winter Trends: Insights & Analysis

 

Frozen Fortunes: Navigating the Cryptocurrency Market Amidst the Chilling Winds of Crypto Winter

The cryptocurrency market is suffering as a result of Crypto Winter. My friends, let's checkout the reasons and effects of Crypto Winter on Investors and their wealth.

Crypto Winter Means :-

A point where the market is down very badly and no major buying is taking place.  This laziness continues for a long time and is called Crypto Winter or Crypto Bear.

First and foremost, consider - December 2023, Best Crypto Currencies:-

1. Bitcoin @ 41,722 $ or 34,63,000 INR Per 

2. Etherium @ 2,217 $ or 1,84,000 INR Per

3. Tether @ 1$ or 83 INR Per

4. Binance @ 254$ or 21,000 INR Per

5. XRP@ 0.62 $ or 52 INR Per

{ All Values are based on current U.S.D. Rate }

A Historical Perspective on Cryptocurrency:-

The first cryptocurrency transaction :-

Hal Finney, a programmer, was one of the early supporters, consumers, individuals who contribute, and beneficiaries of the first bitcoin transaction. On the day the bitcoin software was published, Finney downloaded it and got 10 bitcoins from Nakamoto in the world's first bitcoin transaction on January 12, 2009.

The initial Cryptocurrency Worth :-

The initial one known Bitcoin transaction that did not involve the founder occurred in late 2009, when 5,050 Bitcoins were exchanged over PayPal for US$5.02, putting the worth of 1 Bitcoin at around US$0.001 – a tenth of a penny. In India, that is 8.3 Rupees.

Bitcoin’s First Use ( as Purchase Something ) :-

Binance and Huobi, two cryptocurrency exchanges, announced tournaments to commemorate the controversial Bitcoin Pizza Day. Call it a craze or a real thing, cryptocurrency has grabbed the globe by storm and no one can ignore it. Entrepreneurs and market investors will find plenty of opportunities in the virtual currency environment. But where did it all start? The first cryptocurrency transaction was reportedly over two pizzas. Shocked?

On May 22, 2010, Laszlo Hanyecz of Florida exchanged his Bitcoins for two pizzas from a local pizza shop. The transaction is widely regarded as the first official usage of Bitcoin for a commercial transaction with a real corporation. However, Bitcoin was not yet a marketable money. So, how did Laszlo Hanyecz go about trading his coins?

Laszlo Hanyecz spent 10,000 Bitcoins on two pizzas at a local pizza business called Papa John's in 2010. His Bitcoins were only worth $40 at the time. However, because cryptocurrency was not yet a commercial reality, Hanyecz reached out to the Bitcoin Talk community and publicly traded his Bitcoins to anyone willing to purchase him these pizzas. Given the current value of Bitcoin, which is above $46k, these two pizzas can be considered the most expensive pizzas of all time.

Recognition of Bitcoin Pizza Day  :-

Because this transaction signaled the commercialization of cryptocurrencies in the real world, cryptocurrency enthusiasts designated May 22 as Bitcoin Pizza Day. This year marks the 11th anniversary of This Day.

Bitcoin Pizza Startup Launch  :-

Considering the ongoing mania for both Bitcoins and pizzas, Anthony Pompliano (founder and partner at Morgan Creek Digital) launched a week-long Bitcoin pizza campaign via his Twitter account. The drive took place in May of this year. His message was as follows: "Today I am announcing Bitcoin Pizza - a new national pizza brand that is launching in 10 cities."

The Pizza Day Drops :-

Binance and Huobi, two cryptocurrency exchanges, honored the controversial Bitcoin Pizza Day by introducing different tournaments. Huobi allegedly operated a $22,000 prize pool, with one user receiving $5,220. Binance was reportedly said to have launched an NFT campaign in which the winner received $52,200 in Bitcoin pizza.

Day of S. Nakamoto's Vanished :-

Bitcoin Pizza Day isn't the only time Bitcoin users have declared a day an unofficial cryptocurrency holiday. When Bitcoin developer Satoshi Nakamoto vanished after standing down as project leader on April 28, 2011, Bitcoin holders dubbed it Satoshi Disappear Day.

The Birth of Bitpay :-

BitPay is a bitcoin payment service provider headquartered in Atlanta, Georgia, United States. Bitpay was established in May 2011 by two men Tony Gallippi and Stephen Pair. BitPay confers on Bitcoin and Bitcoin Cash payment processing services for merchants

Web Series about Crypto Currency:-

StartUp , Trust No One , Bitcoin Heist , Dodgecoin Billionaire , 

Starting of Coinbase Report :-

According to Coinbase Report, roughly 8.3 crore rupees worth of bitcoin was acquired in February 2013. And the price of bitcoin on that date was 22$ USD or 1826 INR.

Let’s Examine the Bitcoin Price History. :- 

1. April 2013 - 100 $ U.S.D. , @ 8300 INR Per

2. November 2015 , 1000$ U.S.D. , @ 83000 INR Per

3. December 2016 , 19345 $ U.S.D. , @ 16,05,635 INR Per

4. In COVID Times , 6965 $ U.S.D. @ 5,78,095 INR Per

5. November 2020 , 29,000 $ U.S.D. @ 24,07, 000 INR Per

{ Prices are based on the current U.S.D. Price }

Ist Fall down in CryptoCurrency ( Crypto Winter ) :- 

Crypto plummeted to 20,000 $ USD @ 16,60,000 INR each in December 2020, signaling the start of the Crypto Winter.

However, in 2023, it took care of itself, and the price of crypto currency was raised to USD 34154 $ @ 28, 34,782 INR Per.

Reasons for Crypto Winter :-

1. FTX Exchange Crash ,

2. Luna Coin Algorithms Fail , 

3. War situations: Russian Ukrainian War , Israel Palestine War . 

4. NFT Fail , The chaos that erupted resulted in the crypto market

Reasons of  Crypto Winter ( in Detail ) :-

1. Coindesk Report About FTX Crypto Exchange.

2.  300$ Billion about  2.4 Arab Rupees Loss after Luna Coin Algorithms failed.

3. The American government's increasing crypto interference and strict rules 

4. In China, there is a crypto ban.

5. In Canada crypto isn't legal tender.

6. You can transact in crypto in Japan, it is legal after registration, the attitude of the government is soft.

7. Crypto Currency is not legal tender in India i.e. people cannot purchase or Sale goods in crypto, but they can invest in crypto, for that they have to pay 4% cess along with 30% tax.

8. El Salvador was the first country to adopt Crypto currency as legal currency.

9. Whole world is suffering from war situations, As -Russia Ukraine War, Israel Palestine War.

10. NFT Fail , The chaos that erupted resulted in the crypto market

Starting of FTX :- 

FTX Trading Ltd., or FTX for short, is a bankrupt corporation that previously ran a fraudulent cryptocurrency exchange and crypto hedge fund.Sam Bankman-Fried and Gary Wang created the exchange in 2019. The firm had over one million members at its height in July 2021 and was the third-largest cryptocurrency exchange by volume.FTX was founded in Antigua & Barbuda and has its headquarters in the Bahamas.FTX is closely related to FTX.US, a separate exchange for US citizens.

Collapse of FTX and its effect on Crypto :-

After CoinDesk revealed that a linked trading business, Alameda Research, drew the majority of its wealth from speculative cryptocurrency tokens, FTX collapsed in early November 2022.

Due to worries about this poor financial assessment process and abnormally tight association with Alameda, a wave of client withdrawals forced FTX and Alameda into bankruptcy and rattled the volatile crypto market, which lost billions and plummeted below a $1 trillion valuation.

In December 2022, the United States government filed civil and criminal charges against Sam Bankman-Fried (A boy became a billionaire at the age of 30, was arrested in fraud) and top executives for misappropriating over $8 billion in customer deposits, laying the groundwork for insolvency, and generating false financial statements inflated with niche token holdings to mask the shortfall.

Bankman-Fried was tried in October 2023 and convicted in November 2023 on criminal counts for which he was extradited from The Bahamas to the United States, with one charge withdrawn in July 2023. He is scheduled to stand trial again in March 2024 on allegations brought following his extradition.

NFT ( Non Fungible Token ) :- 

The NFT is a data file that can be sold and exchanged that is recorded on a form of digital ledger known as a blockchain. The NFT can be linked to a specific item, whether digital or tangible, such as a picture, piece of art, music, or recording of a sporting event. It may grant the asset license rights to be used for a certain purpose.

Fall of NFT and Its Effect on Crypto Currency:-

The market peaked in January 2022, but by September of that year, trade volumes had plummeted by a whopping 97%. The NFT meltdown was part of a larger cryptocurrency industry wipeout that resulted in a staggering $2 trillion loss of value.The NFT bubble has burst, and aspirations to change digital ownership now appear to be, at best, pipe dreams.

NFTs, which were named the Collins Dictionary word of the year in 2021, are non-fungible tokens that are uniquely identifiable and stored on a blockchain. They can't be duplicated or modified, so they're safe from theft or fraud.Ownership, on the other hand, may be transferred, allowing them to be sold and exchanged. NFTs can be images, memes, videos, blogs, or even tweets, such as Dorsey's first 'just putting up my Twitter,' which is held by Sina Estavi.According to Steven Schuchart, chief analyst at GlobalData, they are a social currency formed by "a desire to do more with blockchain than just bitcoin." Their allure stemmed from the possibility given by blockchain security, which is nearly difficult to tamper with, safeguarding both producers and customers from theft.

NFTs gave musicians with guaranteed revenue: "The community also, at least in the beginning, firmly supported royalties for secondary sales," digital artist Anne Spalter noted. Although this is no longer the case, it appeared at the time that this great condition of affairs would stay and perhaps even impact the conventional art world." Creators were able to collect automated royalty payments from every transaction by incorporating smart contracts into their NFTs. Lockdown amplified this frenzy by providing artists with a new marketplace.

The first NFT is largely assumed to have been formed in 2014, when Kevin McCoy launched 'Quantum' on the Namecoin network. It's a multicolored, throbbing octagon that sold for $1.47 million at Sotheby's auction.

Twitter's ex-founder Jack Dorsey sold one of his tweets through NFT for Rs 30 lakh.Salman inked a deal with Bollycoin Co. to invest in NFT. Amitabh Bachchan also sold his Madhushala NFT collection for Rs 8 crore in 2011.

The hype around NFT has wreaked havoc on the cryptocurrency market.

Investors Guidance :-

Before purchasing cryptocurrency, investors should evaluate the dangers - not all initiatives succeed. Furthermore, investors should have a well-diversified portfolio and an investing plan in place. Other asset types should be included for risk management.

When deciding which cryptocurrencies to purchase, investors should conduct their own research. As a result, investors will join the market with their eyes wide open.