PayPal CEO David Marcus Predicts Crypto Winter Lasts Until 2024. PayPal CEO David Marcus predicts that the crypto winter won’t end anytime soon. Through uploads on his blog, he predicts how the crypto sector will perform in 2023.
Through this upload, first, Marcus looks back on 2022 by recording the bankruptcy of FTX. The USD 32 billion cryptocurrency exchange has taken the lead in crypto after partnering with athlete Tom Brady and other celebrities to improve its image. Last month, however, the collapse of the FTX shook confidence in the crypto sector and prompted calls for tougher regulation.
FTX founder Sam Bankman-Fried has been charged by United States authorities with eight criminal offenses ranging from fraud, money laundering, conspiracy to commit fraud. It is expected that he will serve a long prison sentence.
Read Also: Hong Kong Monetary Authority To Trial Central Bank Digital Currency In Late 2022
“For crypto, it was a more challenging year,” Marcus wrote, quoted from Yahoo Finance, Monday (2/1/2023).
Marcus saw all the ugliness from the early years of greed from Wall Street repeating itself. “This thing with the collapse that quickly spread to other companies, what is most egregious and shocking is that FTX closed the year with an additional and utterly unnecessary dose of drama,” he added.
The FTX collapse adds to an already depressing crypto winter. The two biggest cryptocurrencies bitcoin and ethereum are down more than 60 percent year to date. Shares of crypto exchange Coinbase plunged 86 percent.
Marcus said, crypto recovery will take years. However, he saw some relief ahead.
“We won’t be getting out of this crypto winter in 2023 and probably not in 2024 either,” he wrote.
He emphasized that it would take several years for the market to recover from irresponsible industry players and for responsible regulation.
Meanwhile, Coinbase CEO Brian Armstrong also noted the industry’s bad actors earlier this month. “We have to come to terms as an industry with the fact that I think our industry attracts a disproportionate share of scammers and fraudsters,” he said.
PayPal CEO David Marcus Predicts Crypto Winter Lasts Until 2024. Last week, Senator and Senate Banking Committee Chair Sherrod Brown said crypto doesn’t get free because it’s bright. “Things that look and behave like securities, commodities, and banking products need to be regulated and supervised by agencies that are responsible for serving consumers,” he said.
Marcus noted that consumer trust will take several years to rebuild. “But in the end I believe it will prove to be a beneficial rearrangement for legitimate industry players in the long term,” he said.
He added that, in crypto, years of greed will make room for real-world applications. “The years of making tokens just like that and making millions are over. The music has stopped. We are returning to our regular programming of creating real value and solving real world problems,” he said.
Previously, 2022 was a bad year for the cryptocurrency market regardless of Bitcoin as the world’s largest cryptocurrency by market capitalization. As of December 20, 2021, bitcoin was trading at USD 46,406 (Rp 725.4 million) currently Bitcoin is trading at around USD 16,000, this means it has lost about 63 percent of its value this year.
As reported by CNBC, Tuesday (27/12/2022), the price will likely fall even further when crypto traders and companies start to see they don’t have an endless stream of tokens willing to prop up crypto prices.
Crypto is considered a highly volatile asset that is subject to unpredictable price fluctuations and drops. For this reason, financial experts usually advise against investing more into crypto than you can potentially lose.
Read Also: Sam Bankman-Fried Released On Conditional Guarantee Of USD 250 Million
In the latest blow to the crypto space, Core Scientific, one of the largest publicly traded crypto mining companies in the US, which primarily mints bitcoins, filed for bankruptcy on December 21, over falling crypto prices and rising energy costs.
Moreover, the collapse of FTX, a bankrupt crypto trading platform that was once valued at USD 32 billion, has shattered investors’ confidence as the effects of the company’s collapse continue to spread throughout the crypto industry.
About 60 percent of Americans now believe investing in digital currencies is very risky, up from 45 percent in 2021, according to a recent CNBC Make It: Your Money survey, conducted in partnership with Momentive. Another 26 percent believe it is quite risky.
PayPal CEO David Marcus Predicts Crypto Winter Lasts Until 2024. Only 8 percent of Americans had a positive view of cryptocurrencies as of November 2022, according to the CNBC All-America Economic Survey.
