In recent years, the rise of Bitcoin and other cryptos has brought many challenges for governments and banks. However, the increased popularity of crypto led to increased market volatility, raising the stakes of digital assets.

Today, the crypto market is worth over $1 trillion and is expected to grow at a compound annual growth rate (CAGR) of 12.5% from 2023 to 2030.

Many critics quickly say that the regulation also contributed to the volatility, alongside other collapsed crypto firms and not to mention the 2022 FTX bankruptcy, causing trillions of dollars in losses.

As a result, many governments seek capital from the blockchain and other technologies powering up the crypto ecosystem.

And now, we are left to wonder what cryptocurrency’s future is and what 2024 will make of it. Read further and take note, as in today’s article, we are discussing the state of cryptocurrency in 2023 and where it’s headed in 2024.

Cryptocurrency in 2023

As we are in mid-2023, it is crucial to acknowledge the events that have unfolded thus far. The U.S. Securities and Exchange Commission (SEC) has been notably stringent in its regulations on the crypto ecosystem, with the collapse of the crypto exchange FTX in November 2022 serving as a defining moment.

Moreover, a new law was endorsed in April this year to trace crypto-asset transfers to prevent money laundering and other possible illicit activities.

This law covers transactions above €1000 from self-hosted wallets when interacting with hosted wallets managed by crypto service providers. Please note that this does not apply to person-to-person transfers.

Indeed, some regulations can help legitimize crypto space, but let’s be honest: isn’t too much ordinance going to interfere with the whole concept of decentralization, thus diminishing its power?

2022 shook the idealistic world of the crypto ecosystem, but these are the lessons that need to be addressed and solved in 2023 and beyond. Let us paint the picture better.

Last year recorded the highest number of cutoffs in the history of crypto, where some of the most significant players, such as Crypto.com, Coinbase, OpenSea, Kraken, and others, accounted for 23,600 layoffs.

Yet, despite all that, the crypto market has bounced back after the crypto winter, and we are also witnessing a resurgence in job opportunities. We can see that Europe leads the world, acquiring 67.8% of the global total of blockchain jobs, followed by North America and China.

So, if you’re considering a career upgrade, exploring the Web3 job boards is advisable as it provides diverse opportunities to become part of the thriving Web3 ecosystem. Also, further research will help you discover many options to transition into the Web3 industry.

Jobs related to Web3 make up 40% of the total job market in the United States, amounting to 11,910 positions. This percentage stands as the highest among all countries.

Future of Cryptocurrency in 2024 and Onward

Probably one of the most awaited events that genuinely impact the crypto landscape is the Bitcoin halving, which will take place in April 2024.

But what’s with this event that slices Bitcoin like a cheesy pizza? Well, exactly as it sounds. The halving reduces the rate at which the new coins get generated, lowering the amount of the supply.

The last Bitcoin halving was on May 11, 2020, with a block reward of 6.25 BTC. Until then, the event happened in July 2016 at 12.5 BTC and in November 2012 at 25 BTC.

Here’s an interesting fact: the final Bitcoin halving is expected to occur in 2140, coinciding with the point at which the circulating supply reaches the maximum of 21 million coins.

So, Bitcoin halving is a crucial event for traders, as they reduce the number of new coins, thus limiting the new coin supply. In turn, it can impact BTC prices if the demand remains high.

It is important to note that after each halving, the value of Bitcoin grew at incredible rates, thus resulting in a bull run. When the prices rise due to the supply decrease, demand increases.

What is striking is that given the nature of Bitcoin and its necessary mining methods, and the high cost of electricity, it will take a lot of work for miners to stay competitive. Consequently, miners expect to witness a rise in tandem with the decline in block rewards.

But when is the best time to buy crypto? Based on the history of Bitcoin and the saying of Pete Rizzo, a Bitcoin and crypto journalist, there is little reason to believe that the future will be different.

“A small reminder the world’s most valuable money is only designed to get more scarce. Plan accordingly,” he tweeted on May 12 this year.

How to Prepare for the Future of Cryptocurrency?

As the future of cryptocurrency presents both exciting opportunities and challenges, it is best to make informed investment decisions and navigate this dynamic landscape effectively.

But you don’t have to do this alone, as many tools are available to ease the process. For example, utilizing tools like the crypto ROI calculator can provide valuable insights into potential returns and assist in maximizing investment outcomes.

Calculating the Return on Investment is an essential step for making informed decisions, assessing the risk, evaluating the performance, and, in the end, aligning your investment plan with realistic, achievable goals for your trading strategy.

Another thing that could positively impact your experience is thoroughly checking the investment you wish to make, as this new market brings many scammers. Also, please remember that if a promotion seems too good to be real, it isn’t real.

Besides this, diversifying your crypto portfolio is the way to go, as you need to place your eggs in one basket. Diversifying is a critical strategic move, especially during a bear market. It is recommended to have a mixture of stablecoins and other assets, such as stock and others.

Keep your eyes on the market trends to see and predict when prices will likely increase or decrease. Additionally, technical analysis tools can help you anticipate market movements, thus making better-informed decisions about when to buy or sell your assets.

Another good thing that costs nothing is having a long-term perspective when investing in crypto. If we look at the crypto market from a historical perspective, we’d see that the crypto ecosystem has shown remarkable resilience over the past years.

Conclusion

So, crypto’s future seems promising yet challenging. While the market experienced volatility, it also demonstrated resilience and growth potential.

The rise in popularity of Bitcoin and other coins has captured the attention of governments and other regulatory entities, thus, leading to many attempts to leverage and restrain blockchain technology. However, finding the right balance between crypto regulation and decentralization remains a key challenge for the years to come.