2023 Cryptocurrency Trends: What To Look Out For

By now, you’ve definitely wondered if you should invest in the cryptocurrency sector and what your approach should be!

You’ve got to keep an eye on the crypto space in 2023 and where the trends are going. This will help you decide how you should approach investments in the crypto market.

This guide will show the popular cryptocurrency trends to expect this year. Use it as well as your own research to help you with your investment decisions.

Here’s what you need to know:

Bitcoin Fixes This

You’ve heard the phrase “Bitcoin fixes this” so many times it might as well be an adage!

One can expect even more adoption of Bitcoin. As inflation continues to increase in the US and abroad, Bitcoin is seen as a great alternative to fiat currencies.

As you know, Bitcoin has a fixed supply of 21 million coins. This ensures that the value remains steady. This is opposed to your fiat currency which loses value due to constant printing.

The predicted trend for 2023 is that Bitcoin adoption will continue to grow and that the price will continue to rise.

To Altcoin or Not to Altcoin?

One trend that doesn’t seem clear is how altcoins will fare in 2023. They’ve received a lot of backlash from Bitcoin Maximalists.

However, NFTs are still popular and this will increase Ethereum adoption. The Ethereum Foundation’s association with the World Economic Forum is also likely to increase adoption.

We can also see some interest in different altcoins such as the Shibu Inu coin. This is because one can expect to see many “pump and dump” schemes have a resurgence.

This refers to when a collective buys a cryptocurrency with the hopes of increasing the price.

This happened when the trading platform Robinhood allowed cryptocurrency trading on its platform. 2023 might be the year where we see this once again.

NFT Adoption

As mentioned in the previous section, NFTs remain popular in 2023. While there have been some setbacks, they haven’t really made a dent in NFT adoption.

Many investors are keen to buy NFTs with the hope that they can make a great profit from them. While NFTs are still used for digital art, we might still see other digital assets join the club.

We have also seen NFT adoption in the music industry. Many popular musicians have released unique NFTs to their fans. Many of these NFTs have added to these musicians’ fortunes.

As a result, we’re likely to see continued growth in the NFT market. This might lead to even more platforms that sell NFTs.

The Continued Growth of DeFi

DeFi, or decentralized finance, is one of the fastest-growing segments of the cryptocurrency sector. Oddly enough, it doesn’t get discussed that much among mainstream investors.

It’s been a niche interest so far, but one can expect that to change in 2023. DeFi lets people access financial services without the need for intermediaries. These intermediaries can include payment processors or banks.

These platforms use blockchain technology and smart contracts for managing transactions.

As the DeFi ecosystem continues to grow, it’ll create a parallel financial system that threatens the fiat system. It might even get used for creating parallel societies. 

The Emergence of Central Bank Digital Currencies

As early as the start of the global pandemic, there were talks about Central Bank Digital Currencies or CBDCs. In 2023, they might become a reality, at least partially.

CBDCs, are digital versions of fiat currencies  issued and controlled by central banks. CBDCs have been in development for several years now. Both China and Nigeria use them, with the former having greater success imposing them on the population.

CBDCs are considered totalitarian and a threat to economic freedom. However, they can, paradoxically, make a stronger case for Bitcoin.

Bitcoin is the only cryptocurrency that isn’t controlled by a government or organization.

Altcoins will be seen as an alternative to CBDCs by many. However, critics will maintain that they have little difference as they can be controlled by companies.

The most popular altcoins will also have oversight from governments and central banks.

Increased Regulation

2023 will bring more acceptance of cryptocurrencies. At the same time, one can expect to see more regulation as well. 

Governments around the world have taken notice of cryptocurrencies. Most see them as a threat and want to regulate them. You can expect regulation in authoritarian dictatorships such as China.

However, many of the legacy-brand countries in the West will also regulate them. While Canada might be better for crypto investing than China, it certainly isn’t likely to win any favors among the legislature.

Increased regulation will be a double-edged sword for the cryptocurrency sector. From one angle, increased regulation could help to legitimize cryptocurrencies.

This will help make them more widely accepted. But from another angle, strict regulation will stifle innovation and deter entrepreneurs and investors.

A lot of regulation will revolve around cryptocurrency exchanges. There’ll also be regulations and restrictions on the use of cryptocurrencies. 

Integration With Traditional Finance

As cryptocurrencies become more mainstream, one can expect more integration between the cryptocurrency sector and traditional finance. This will include cryptocurrency-based financial products.

This could include  ETFs, futures contracts, and options. This already exists and it’ll only increase.

Furthermore, we might see more traditional financial institutions enter the crypto market. This could include banks and asset managers offering cryptocurrency investment options. This will help make them more mainstream.

However, one must be aware that traditional finance will have its limitations. Traditional finance won’t allow you to have full freedom and control over your crypto assets.

Greater Adoption in Developing Countries

One of the reasons why developed countries have skepticism toward cryptocurrency is that they don’t see its uses.

However, this is the complete opposite approach in much of the developed world.

As mentioned earlier, Nigeria has introduced its own CBDC. Nigerians, however, have largely rejected the digital Naira.

Rather, they’ve turned to Bitcoin and they understand how its use helps them transact. They understand how Bitcoin offers them freedom, which their government strives to take away.

As the enclave system in South Africa grows, Bitcoin will become the alternative to the Rand in each enclave. Zimbabwe has had an ‘e-cash’ system since its currency fell prey to hyperinflation. Bitcoin truly fixes the problem in their economy.

Increased Use in Cross-Border Transactions

One of the major benefits of cryptocurrencies is their use in cross-border transactions.

Take a moment to consider the current fiat system. Let’s suppose you need to send money from a US bank account to a Serbian bank account.

You’ll have to first pay a wire transfer fee. This can cost up to $15. Then, when the Serbian bank reaches the money, they’ll charge $10 to receive the money. If you send $100, your recipient only gets $75!

This isn’t ideal but we’ve had no other choice so far. But with cryptocurrencies, you can send a transaction within a few seconds or minutes.

Transaction fees are much lower. You’ve also got the added bonus of not having an intermediary.

In the previous example, the transaction can only occur under two conditions. First, the US bank has to approve the sending. Second, the Serbian bank has to approve the receiving.

In today’s context, imagine if you had to send money from the US to Russia. Due to the current sanctions, it’ll likely get rejected. Bitcoin fixes this as will other cryptocurrencies.

More Bitcoin Content

Bitcoin will continue to reign over other cryptocurrencies. One major reason is that, in 2023, we’ll see more content about Bitcoin.

There have already been great books written about Bitcoin. These can range from “Bitcoin Is Venice” to “21 Lessons.” Websites such as European Bitcoiners have translated Bitcoin content into almost every European language.

Bitcoiners aren’t just ordinary investors. They’re a community that believes in promoting Bitcoin. In 2023, we can only expect more Bitcoin content to get created to promote it.

We’ve seen documentaries showing how it’s been adopted in El Salvador. There are great podcasts such as What Bitcoin Did that discuss its influence on the world.

The more Bitcoin-related content there is, the faster adoption will be. There is also content about altcoins. However, so far, content promoting altcoins hasn’t made the same impact as Bitcoin-only content.

If you’re interested in investing in Bitcoin, you might want to keep track of Bitcoin-related content. This will help you understand its purpose a lot more. It’s also great if you want to “orange-pill” others to get them to invest in Bitcoin.

The future overall looks bright for Bitcoin this year and we recommend you share this guide with other keen investors.

Those Are the 2023 Cryptocurrency Trends

Now you know the 2023 cryptocurrency trends that you should pay attention to.

Bitcoin adoption will continue to grow. It is the most popular cryptocurrency and will retain its throne in 2023.

There’s not much consensus on whether altcoins will continue to be popular this year. NFTs have been dismissed by many investors. However, adoption continues so one has to wait and see.

The developing world will continue to use cryptocurrencies and traditional finance will work with them as well. If you still need more great crypto content, then you’ve got to peruse our website for more articles!