Where is Bitcoin going this year will Ethereum remain the dominant layer one Could nfts make a comeback or will Regulation strangle all of crypto all of This was recently covered in an Institutional report a comprehensive and In-depth 2023 Market Outlook that I Found incredibly insightful so in my Video today I’m going to break down this Report into the most important sections And explain what they could mean for the Crypto Market I also have a few of my Own thoughts on these predictions so be Sure to stick around The report I’ll be summarizing today is One that was drawn up by David Duong the Head of institutional research at Coinbase with contributions from several Of his colleagues now I’ve covered a Number of coinbase reports from David And Co in the past and have linked to This particular one below so let’s Jump Right In Chapter one is on some of the key themes That we’re likely to see in 2023 these Will be expanded on later in the video But I’ll run through a number of them Now the First theme is on the flight to Quality by institutional investors quite Simply there was a general retraction of Institutional capital from all risk Assets in the second half of last year This wasn’t just a crypto-specific Phenomenon either and was based on the
Fear that we could be heading into a Recession something that many Financial Participants view as a certainty This has led to a capital flight to Quality Assets in the crypto space that Means the likes of Bitcoin and ethereum This is on the quote sustainable Tokenomics maturity of the respective Ecosystems and relative Market liquidity David and Co also show us this chart Here which is quite encouraging it’s the Long-term holders of Bitcoin and the Long-term holder percentage over the Years as you’ll see there are a number Of dips that occur in the bear markets As some hodlers are shaken out however Over the long term the number keeps Increasing On this page they go over the eth Narrative more specifically given that There are a number of alternative layer Ones on the market right now can Ethereum retain its dominant position Despite the prevailing market conditions 2022 was a big year for ethereum and That’s because of its move to proof of Stake looking forward though we can Expect developer consolidation to Continue as they coalesce around a Smaller number of chains in 2023 however Despite the potential for competing Chains in 2023 the authors think that Ethereum is likely to remain dominant Thanks to layer 2 scaling Solutions
Indeed in the case of polygon for Example these layer 2 Solutions are Actively poaching developers from Ecosystems like solanas Then there’s the growth of decentralized Finance and decentralized exchanges this Is only likely to accelerate in the new Year as the industry has become Incredibly Jaded by centralized Exchanges and lending firms that have Lost billions of dollars in value This doesn’t mean that there won’t be Challenges for D5 of course hacks and Exploits are still commonplace and a lot Of the dexes that do operate can’t Margin accounts correctly given the Extreme volatility of some of these Tokens Now onto this page over here and that’s On quote permissioned D5 an oxymoron if You ask me if it’s permissioned well Then it ain’t D5 just saying Anyway David and Co argue that as Risk-free yields start to pick up in Trentify the yield uplift we see in D5 Protocols is no longer that appealing Hence the fall in tvl that we can see in This chart over here however they think It could be an opportunity for those Dapps adapting to a more permissioned or Enhanced version of defy that has Regulations despite how much we may be Against the notion of any sort of Permission defy they do make a fair
Point and that is that it could allow For the inclusion of tokenized Real-world assets within D5 as well as Solving other problems related to credit Scores like under collateralized lending And speaking of real-world asset Tokenization the authors point out that This could be a relatively risk freeway For institutions to gain crypto exposure In some form essentially tokenize a Trad Fire asset and trade it on a blockchain Now while this has been slow out of the Gates last year did see French banks Acetate General issued tokens that were Based on AAA rated French Home Loans This could be used as collateral to Borrow up to 30 million die however the Authors think that it will take quite Some time before we see tokenization of Non-financial assets on the blockchain This next section here is on quote areas For Creative destruction that good old Capitalist cleanse of coinery Jokes Aside the authors point out that Investors willingness to accumulate Altcoins this year has been severely Impacted by last year’s deleveraging They say that many of these newer Projects may have been hit particularly Hard as they loaned out their tokens to Market makers who’d used FTX as a Liquidity pool hence it’s going to be a Long old wait for the bankruptcy process To conclude and for these projects to
Get their money back given how long it Could take I wouldn’t expect many of Them to still be standing by the end of It Moving on this interesting chart here Shows the relative sector flows from Different altcoins as you can see it’s Relatively even in terms of buys and Sells although it looks as if liquid Staking projects are seeing large Inflows and if you’ve seen the Performance of Lido finances tvl into The new year you’ll appreciate that as Well now moving on from altcoins this Page talks about those marginal Bitcoin Miners it’s been a rough old year for Them as well as the report points out Miners have been liquidating coins Faster than they can mine them data from A report by glass node last year shows That they’d been selling about 135 Percent of the mined coins on a daily Basis This is as a combination of not only the Lower Bitcoin price but also the added Costs required to mine increased Difficulty with higher energy prices The result has been a number of Bankruptcies with both core scientific And compute North filing last year Should this trend persist the report for Sees more marginal miners eventually Throwing in the towel or being acquired By better capitalized competitors
On to this next page over here however Which talks about potential new use Cases for nfts now while it’s clear that Demand for nfts is currently in the Toilet David and Coach seem to think That we are still super early more Specifically the fundamental Characteristic of nfts unique and Immutable ownership representation has Not changed as a result there could be a Widening of scope to a number of Different nfts that focus on utility so In other words there could be a shift From the current narrative art-based Nfts to those that are focused on Digital identity ticketing memberships Or subscriptions as well as Supply Chain Management and the tokenization of real World assets The final section of chapter one is on Foundational reforms to the crypto space Or more specifically regulatory reforms David and Co think that the next Market Cycle could be shaped by significant Regulatory standards and Frameworks he States that quote clear guidance is Necessary to avoid driving Innovation to Regions where regulatory requirements Are weaker and customers may be at Greater risk now I tend to agree here Part of the reason why in exchange like FTX which wasn’t based in the US was Able to get so many users was because These users were driven away from U.S
Shores where there weren’t any clear Regulatory Frameworks The report is particularly optimistic About certain legislation including the Digital Commodities consumer protection Act dccpa which would allow the cftc to Have oversight of digital assets Something that I actually think most of Us would prefer anything to get crypto Regulations away from the grasp of a Certain Gary Gensler at the SEC Whatever laws are put into place by The Regulators it’s important that they Realize that what has happened over the Past year has absolutely nothing to do With the technology and everything to do With the Reckless and fraudulent Centralized entities what will be needed First and foremost is a reform of Centralized lending practices the three AC and Celsius collapses led to a Cascade of similar falls for the likes Of Voyager and blockfi indeed I don’t Think that we’ve seen the end of it Given that the pioneer of daisy chain Lending Genesis now also appears to be Headed for bankruptcy David and Co also Expect to see a maturation of lending Practices including quote underwriting Standards appropriate collateralization And asset stroke liability management Given that retail got so badly burned by The collapse of these lending firms they Reckon that the majority of the
Inventory for crypto lending in 2023 Will come from institutional Capital They believe that this could take a few Months although I happen to think that This timeline is being optimistic given The bloodbath that institutions have Also had to endure speaking of which the Report does see a path to more Institutional adoption in 2023 despite The increased volatility in 2022 there Was a slow grind of adoption moreover According to an Institutional survey That coinbase conducted last year the Majority of these institutions still Think that crypto is here to stay Despite the challenges it faces now with All that said David and Co believe that We need to see an actual bottoming of Not just the crypto Market but also Trad Fire markets before we can see that Rush Of institutional capital all coming back Now this page finishes off over here With some additional stats from that Coinbase survey last year specifically As they relate to price predictions over 50 percent thought that prices would Remain range bound over the next 12 Months the important caveat here is that This survey was conducted just before The FTX collapse so I think that the Results would be quite different today And this perfectly tees up the second Chapter of the report which is all about Bitcoin
This chart over here gives a high level Overview of bitcoin’s price overlaid With many of the most important news Stories and developments color-coded if They’re bullish or bearish something They do point out which I think many of Us don’t really appreciate is just how Resilient Bitcoin has been in the face Of the broader C5 collapse I’ll also Remind you that unlike in the great Financial crisis there was no Taxpayer-funded bailout moreover despite Bankruptcy after bankruptcy the Bitcoin Network still continued to work as Intended 255 000 transactions per day in 2022 despite The incredibly volatile conditions the Reports authors also say that from a Macro perspective the value proposition Of Bitcoin has only improved think about The collapse witnessed in certain Sovereign currencies as a result of Completely bone-headed monetary policies Here you have the charts of bitcoin’s Risk-adjusted returns compared to the Likes of the Japanese Yen and the Euro What it shows is that BTC USD mirrored Those of Euro USD producing gains when The Euro sold off moreover in 2022 when Most g10fx pairs were collapsing versus The dollar Bitcoin appeared to Outperform relative to the others on the Downside however the important caveat Here is that it excluded some Choice
Periods such as May June and November so I would take that with a pinch of salt Over here meanwhile David and Co take a Look at the current bear market and Compare it to previous ones this chart Shows the percentage of Bitcoin holders That are currently underwater this is Nearing 50 which is just below Historical high points in previous bear Cycles of 2015 and 2019. these have been Turning points for Bitcoin and have Signaled the bottom of those Cycles or More specifically this is the zone of Max Payne however from a fundamental Perspective the Bitcoin network has Advanced considerably since then for Example the lightning Network channel is Near all-time highs in terms of value Locked and despite the collapse in Prices institutional adoption is still Miles ahead of where it was in previous Cycles On this page meanwhile they expand on The current minor landscape there’s no Doubt that it’s been a tough year Especially for those miners that took Out a great deal of Leverage on their Balance sheets in the good times in many Cases this was collateralized against Their mining machines which have also Been collapsing in value as a result These miners have had to offload Bitcoin Inventory at a rapid Pace you can see That in this chart over here with data
From the public miners about 23 of the Total it’s no coincidence that those That have been the most aggressive with The selling such as core scientific have Been in the most trouble as more miners Switched off those machines the hash Rate continued to drop in December of Last year we sought the largest hash Rate fall since July 2021 and things Could get even worse for the miners this Year however This is especially the case for those With debt as higher interest rates start To bite if Bitcoin remains range banned Then the debt servicing cost could Eventually make normal operations Unfeasible The authors expect to see further Consolidation in the minor space this Year those with stronger balance sheets And more sustainable earnings will Embark on the acquisition of weaker ones It’s not all doom and gloom in the Mining space however outside of the US There are sparks of light including in Russia where they’ve been building up Mining capacity and China where despite The ban miners are still operating this Just goes to show that miners will Gravitate to where there is cheap energy Over here meanwhile the report talks About those Infamous Mount gox Disbursements and you may have heard me Mention this as a potential risk for
2023 quite simply in Q4 of last year the Trustee agreed to disperse over 141 000 Bitcoin while some think that this Could lead to additional selling Pressure this year it’s far from Clear-cut that’s because of a few Factors Firstly many of the claims were brought Up by hedge funds and other private Equity firms they were done as Investments which means that most of the Motivated sellers have already sold Their claims and won’t be dumping their Bitcoin onto the market Second there are creditors in the chain Who opted not to take earlier payment From the trustee in their position Further proof that these are not Desperate sellers looking to get out of Their positions and finally it’s worth Also noting that the trustee has said That these disbursements would be Restricted quote until all or part of The repayments made as initial Repayments is completed so this Basically means that they won’t all be Made at once and hence if there is any Selling pressure it won’t come all in One Fell Swoop now on that final point I’ll also add that last week the date For disbursements was pushed further Back by the trustee so there’s a good Chance that the mount gox theory is just Fun so let’s move on to the next chapter
Which is all about ethereum now similar To the earlier Bitcoin chart the authors Have a chart over here that Maps the Price of eth with all the events of last Year one of the biggest events for Ethereum last year was of course the Merge indeed this was perhaps the most Important event for ethereum since its Launch the fact that it was completed Thanks to the collective efforts of the Ethereum community and no Central Authority is pretty remarkable now over Here David and Co talk about ethereum’s On-chain activity although there’s been A slight decline in said activity this Has been nothing compared to the Collapses seen on other layer ones the Authors also point out that the prospect For a long-term deflationary eat is Quite likely given that small bursts of Activity in October and November were Enough to drive it into deflation it’s Not all sunshine and rainbows of course There has been a reduction in the Transaction fee component of the staking Rewards with that being said they do Mention that there is still currently a Low staking percentage which is keeping Overall rewards relatively High However this could change considerably With the release of the Shanghai Fork Later this year as you know the higher The percentage staked the lower the Rewards and speaking of the Shanghai
Update there is still no firm deadline On when we could see it being rolled out This is acting as an impediment for some Of those aforementioned investors who Would like the opportunity to stake Without the lock-ups On the flip side there are many Concerned about the potential selling Impact that could come from unstaked Hitting the market however as the Authors of the report point out there Would be rate limited withdrawals that Would limit the total amount of eth Unstaked per Epoch now I’ve talked about This in much more detail in my video on The merge which I’ll leave in the Description for you folks the tldr is That the amount of withdrawals won’t be Significant enough to constitute a dump And even then they won’t be processed According to order of requests but Rather other unique and permanent Identifiers moreover there could be Additional demand to stake as the Staking reward increases as a result of The withdrawals lower overall percentage Staked likely more fud and not something I’m all that worried about Now this next page is all about the Efforts that have been made to keep the Network censorship resistant I won’t go Into them in too much detail but I will Say that there are plenty of challenges On this front although open source code
Like flashbots has got around the Question of centralization on the miner Slash validator level the ofact Sanctions of tornado cash threw up the Biggest challenges yet validators don’t Want to risk sanctions violation and Since the tornado cash sanctions almost 70 percent of the blocks propagated are Ofac compliant not ideal anywho this Here is particularly interesting it Looks at new income streams that could Be available to stakers through Restaking essentially this would show Those who have staked their eth in the Main staking contract to also restake it In middleware Tech that generates them Additional returns this is currently Being facilitated through companies like Obol and eigenlayer which are looking to Leverage ethereum base layer security to Build out these middleware Solutions This could be an additional opportunity For 2023 although I will say that this Is still in its initial stages and is Not battle tested enough I’ll leave Links to some additional resources on Eigenlayer in the description for you Guys okay on to the next chapter and This is on the broader layer 1 and layer 2 landscape This is an overview of other ecosystems And blockchains it appears as if the Market has become quite saturated as a Number of l1s and twos have eaten into
Ethereum’s market share in mid-2021 Ethereum had about 70 of the tvl on the Market and this fell to 57 by December Of the same year however ethereum has Maintained almost exactly the same tvl Percentage from then to November of last Year the same can be said of BSC which Had the same tvl at the end of last year As it had at the end of 2021. in terms Of other notable moves Terror has Completely fallen out of the charts for Obvious reasons of course whereas Avalanche has also taken a tumble down The rankings I’m also surprised to see The Resurgence in trons tvl as it’s just Behind BSC for now now another really Interesting way to compare these Alternative L ones and twos is to look At the their market caps as a percentage Of ethereums as you can see the one that Has gained the most is BNB which went From around 20 to over 30 percent However it’s been less favorable for Some of the other Blue Chips such as Solana and Avalanche Solana has been Particularly badly hit following the Implosion of FTX more about that in the Description now something that the Authors also note is the fact that the Transaction volumes on these different Chains don’t appear to move in tandem They vary by Chain which therefore Suggests that developers and users Oscillate to the networks where they get
The most scaling benefits they don’t Have to sit around and accept the status Quo the report also asks the broader Question of whether we’ll see a winner Takes all situation playing out in the Layer ones and layer twos I don’t happen To think so but well maybe that’s just Me Here meanwhile the authors talk about The fat protocol Theory versus the fat Application Theory it’s quite Thought-provoking if you’re an Ardent Follower of the former now I’ve talked About the fat protocol Theory a number Of times in some of my older eth videos Basically with the fat protocol Theory The notion is that value will accrue to The protocol layer whereas coinbase says That as user adoption grows we should Appreciate the fat application thesis Namely that application value can Surpass the value of the network which It’s built on therefore one should focus On the growth rate of dapps on the Network rather than on the growth of the Network itself so where are we seeing Most dapps being built today those Networks are the ones to watch Moving on though and the next chapter is All about stable coins now there’s no Doubt that the growth of stable coins Has been unprecedented over the past two Years if you look at this chart you can See stablecoin dominance as it went from
Near four percent two years ago to close To 14 at the end of last year the Authors think that this is bullish for The market that’s not only because the Participants holding the Stables are Quote digitally native but also because It means that this capital is in dry Pounder and is ready to be deployed Again at some point If we break down the stablecoin volumes It’s no surprise that Fiat backstables Are in the majority clearly the collapse Of UST set the decentralized stablecoin Dream back a number of years the two Biggest centralized stable coins in that Bucket are of course usdt and usdc both Are highly liquid and have extensive Exchange support they’re similar in lots Of ways except for one and that is the Composition of their reserves usdc is Backed by a combination of cash and U.S Treasuries you can see how that Composition has evolved over the last Year tether on the other hand is still Considered to be a black box unlike usdc Issue a circle tether has never done a Full audit although it has completed What are called attestations That aside these attestations have been Showing some promising improvements more Particularly tether has been actively Diversifying away from that Infamous Commercial paper into treasury bills and Other Assets in November of last year it
Held almost 82 percent of its Assets in These highly liquid t-bills will this Really quell Market suspicion well Perhaps but until tether completes a Full audit of those reserves I think the Questions will always linger now on this Page the report talks about stablecoin Potential as a quote killer app there’s No doubt that stable coins can really Help to power Mass adoption of Cryptocurrencies in online payments and Commerce instantaneous settlement and Low fees cannot be taken for granted It’s something you can only really Appreciate if you’ve used tradfi as a Merchant or tried to send money overseas As a regular individual now David and Co Also talk about the work that’s been Done on other forms of stable coins for Example curve has released plans for a Stable coin where the collateral will Automatically vary depending on the Price performance of said collateral It’s called a lending liquidating amm Algorithm or llama and I’ll leave Information about it in the description For you guys they also talk about ave’s New design for an over collateralized Stable coin called go I covered that in My latest RV review which will also be In the usual spot There’s also progress on the regulatory Front for Fiat back stable coins and the New chair of the house Financial
Services committee is Keen to pick it up This year the details are still being Ironed out but as well as non-banks such As Circle it’ll also enable regular Banks to become stablecoin issuers okay So that’s stable coins definitely an Area that’s going to continue seeing Growth this year Let’s turn the page to the next chapter Though which is all about nfts as I Mentioned earlier in the video too much Of the focus has been on pfp nfts and Not enough on the broader use cases that They could serve I’m not throwing shade At the art and collectible movement they Brought awareness of nfts to the Mainstream and they also served as a Strong springboard for a lot of Otherwise Normy no coiners being Onboarded to the web 3 space they also Reinforced the notion of unique digital Property rights something which we Didn’t really have before but they have Led to a flood of competition which has Caused some serious oversaturation This combined with a collapse in trading Volumes on these marketplaces has Further led to an unfortunate sense of Apathy in the nft space only certain Blue Chip collections such as the punks Have managed to maintain their eth floor Prices to some degree now of course the Dollar floor has fallen in line with the Collapse in crypto prices be that as it
May the focus on Collectibles and art Should instead be pointed towards the Unbelievable utility that comes from More General nfts to quote the authors As the world continues to shift towards The digital realm nfts will be a Critical component of the infrastructure That allows ownership and identity to Function in a frictionless environment It’s also not as if these use cases are Mere pipe dreams the next wave of Adoption could already have begun the Authors take us through a few examples Over here Starbucks’s nft loyalty Program Adidas pairing nfts with Physical items the New York Knicks Offering nfts to ticket holders reddit’s Avatar nfts Tiffany encos 250 digital Passes that could be used by Punk Holders to buy crypto themed jewelry now This trend of corporate adoption of nfts Is something that I talked about in my Video on crypto predictions for 2023 and I’ve linked to that in the description For you but the tldr is that with the Proliferation of layer twos like polygon Etc corporate adoption of nfts is only Going to continue in New Year meanwhile Another utility nft category that David And Co touch on are those ens or Blockchain domains these are an amazing Use case for nfts not only because they Represent a personal wallet address but Also because blockchain domains are the
Next Frontier of a decentralized web This is the reason that ens ethereum Name service registrations were off the Chain last year Anyways they also touch on nfts in the Gaming space now this is generally quite A contentious one as if you know any Gamers many are vehemently anti-crypto And anti-nfts although to be fair if You’ve seen some of the blockchain Native games out there well you can’t Really blame them that’s why I tend to Think that we could see nft adoption Taking off in gaming when integrated Into a really popular traditional game As long as this won’t impact on the Gameplay and The Gamers themselves can Appreciate the benefits of the immutable Ownership then the potential is most Certainly there Over here meanwhile the authors talk About the concept of enforcing royalties With nfts as you’ll probably know nfts Would allow creators to get royalties For every transaction that takes place On a Marketplace however capturing these Royalties when the assets are traded off The marketplace or on those marketplaces That don’t enforce them is a lot harder Openc has been steadfast in its pledge To enforce those Creator royalties as This is one of the primary ways in which These creators can be rewarded for their Work in the long term however this does
Mean that they’re losing market share to Other marketplaces like looks rare or X2y2 this avoidance of fees and Royalties is something that the authors Think we will continue seeing this year Most traders in the nft market are Profit driven and the moment that you Add costs to their bottom line they can Easily migrate elsewhere especially with An asset that can be transferred away From the marketplace as easily as an nft However it’s not a favorable outcome for The marketplace given that without the Creators well you wouldn’t have the nfts That’s why the authors stand with the Decision taken by openc to enforce those Royalties something that I agree with Too Let’s hope that the fall in trading Volume won’t Force openc to abandon the Policy okay on to the final yes final Chapter and that is on everyone’s Favorite topic Regulation yep there’s no doubt that Recent events in the crypto space have Provided regulators and legislators with New impetus to take action however as The authors point out many of the Failures that took place in 2022 were Not because of crypto but because of the Nature in which these firms operated Their businesses they quote share Certain commonalities like undue Leverage insufficient risk controls and
In some cases unethical business Practices this is something that happens In tradify all the time despite all the Stringent regulations that exist but Because it’s not the new and exciting World of crypto it doesn’t get the same Attention having said that it doesn’t Mean that we don’t need some regulations We do just as long as they’re reasonable And well structured quote Appropriately tailored regulatory Standards are needed to build a workable Framework for the crypto economy that Appropriately mitigates risk while Enabling the development and Adoption of Digital Innovation for the broader Benefit of society Quite simply guidelines are important as Long as developers and projects know the Rules of the road they can adjust to Keep in their Lanes but it can’t be a Shifting of the goal posts Now when it comes to regulatory Clarity In the US the authors think that we are At an inflection point there was a lot Of movement last year that laid the Groundwork for this for example in March President Biden issued the executive Order focused on cryptocurrencies if You’ll recall this was the one that Asked U.S Regulatory Agencies to come up With a number of proposals around crypto Regulations and Frameworks Some of these were helpful like the
Treasury Department’s reports on crypto Payments others were light on specifics And seemed to continue the status quo However one of the most important Outstanding regulatory issues today is How to really classify a digital asset Is it a commodity or a security because This will determine which agency gets to Regulate it the cftc or the SEC now While Bitcoin has clearly been defined As a commodity there are still open Questions as to whether eth is in the Past it’s been claimed that ethereum is Quote sufficiently decentralized however With the onset of proof of stake Ethereum Gary Gensler created further Ambiguity in a hearing that he took part In last year Now this broader question around how you Would Define the asset is important Because of that dccpa bill that I talked About earlier with that crypto oversight Would be in the hands of the cftc which Is preferable I’ve talked about the bill In much more detail and the video for That will be in the usual spot There were two main problems with this Bill though one was that it left many Open questions for defy regulations and The other was that a major proponent of It was a certain Sam bankman freed so I Think it will be a tough job now to get Any politicians to pick up a bill Attached to such a persona non-grata
Now here David and Co talk about a Particularly concerning case that the SEC is embarked upon and that was the Actions it took against an influencer For undisclosed incentives in a 2018 Ico The main point is that they seem to Think that the sale of the tokens took Place on U.S soil because a majority of The nodes are us-based that is a scary Precedent to try and set as it would Mean that the SEC could take regulatory Jurisdiction over the entire ethereum Network however it’s also fair to say That validators can be spun up anywhere In the world so if the SEC were ever to Set a precedent here those validators Could move to other countries that don’t Come with this overreach now these next Few pages go over some of the other Global regulations I won’t go into too Much detail but here are some of the Most interesting regulatory developments We could see In Europe there’s the mica bill now I Was actually surprised at how Even-handed these regulations are and it Will give more clarity to those crypto Companies based in the EU I’ll link to The video I did on Mica in the Description in the UK meanwhile new Prime minister Rishi sunak is relatively Pro-crypto and the financial services And markets bill fsmb is working its way Through Parliament then in Switzerland
The Swiss Financial Market supervisory Authority finma has classified crypto as A distinct asset class similar to Property or hard Metals I.E not a Security Over here in the UAE they have the Virtual asset regulatory Authority Vara That’s looking to develop crypto Frameworks they announce guidelines for This in August of last year which we Hope will give Clarity to all the Businesses that operate in the region in Africa according to the IMF at least 25 Percent of the countries on the Continent regulate crypto in some form Unfortunately though there are six Countries that have banned it entirely Not surprisingly it’s in those countries Where it’s needed most in Australia Crypto firms have to register under Oztracks AML and kyc regime they also Have to acquire a license from Asic Their security regulator There are also other initiatives Underway to appropriately regulate Digital assets and of course the Reserve Bank is interested in some form of cbdc So trials could begin soon and speaking Of socialist countries with dystopian Tech China has some of the strictest Rules around cryptocurrency as you’ll Recall it banned crypto itself as well As mining on a number of occasions However Hong Kong could be making some
Positive moves that’s because the City-state is considering allowing Retail trading of digital assets and Establishing a regulatory framework this Could be a great entrepo for those Chinese citizens to get into crypto in India a country that has a hot and cold Relationship with crypto things remain Very much up in the air the latest Development is the cryptocurrency and Regulation of official digital currency Bill this will aim to distinguish Various different digital currencies and Establish Frameworks for them I’ll also Have you note that India will be hosting The G20 in 2023 and crypto is actually On the agenda that could be very Interesting in Japan the Financial Services Agency has deemed crypto legal Property while the payment services Act Was proposed to create a holistic Regulatory framework for payment Providers and services that use crypto Singapore has been an organic hub for Digital asset Innovation although it did Take a knock last year let’s not forget That the lunar Foundation guard 3ac Huddle naught Etc were based out of the Country as a result the monetary Authority of Singapore or Mas is looking To broaden the guard rails for retail Traders they’ve also issued guidance Against the advertising of certain Crypto services and finally there’s
Thailand which hasn’t been the most Crypto-friendly country in general there Have been some pretty unfavorable taxes Leveled including on capital gains Although the more onerous terms have Been relaxed Well that’s about it for coinbase’s Report if you’re still here then Congratulations I know it was a lot to Take in but there was some really Insightful information there that I Think we could all benefit from so time For a few of my final thoughts there’s No doubt that we still face numerous Challenges in the coming months There remain a number of high-profile Over leveraged players in the market That have not yet been flushed out there Are still marginal miners who are near Capitulation point we need to see these Gremlins worked out of the system before Any meaningful recovery can get underway It’s also worth reminding ourselves that The current macro backdrop is really for Lack of a better term shite War Inflation recession it’s not the best Environment for allocation to risk Assets however it’s reports like this That help to give me the perspective Required to view the glass as half full Fundamentals remain strong for Cryptocurrencies like Bitcoin and Ethereum they will be the stalwarts of The crypto space and are still likely to
See further institutional adoption Albeit at a reduced rate Defy adoption is likely to continue and The growth rate of stable coins could Help to further its use cases yes there Will be challenges to censorship Resistance but the broader Community can Push through the same can be said for Scaling solutions that help to make it a Truly permissionless and inclusive Financial ecosystem for all while other Layer ones and layer twos will struggle This process of creative disruption is Needed the strong Will Survive and they Will come out the other end more Resilient than ever before Bear markets after all are pressure Cookers that meld the finest metal I also think that the nft sector has Been broadly misunderstood World Focus Has mostly been on monkey jpegs the Underlying use cases for this Revolutionary Tech just cannot be Overstated that’s why you should Actively be doing your own research on Nft use cases and looking into projects That want to use them in unique yet Revolutionary Ways when it comes to Regulation it’s clear that it’s coming Billions of dollars of retail money was Lost last year and those politicians Need to look as if they’re justifying Their six-figure salaries it didn’t help But some of them were caught accepting
Spf’s bribes I mean donations last year Of course given all the dysfunction and General Antics in Washington it seems Unlikely that they could really get Regulations together that could be that Punitive in the meantime the community Has the time and the foresight to gather Our forces and oppose the most punitive Legislation and regulation when it comes So in conclusion 2023 is going to be a Rough year but beyond the gauntlet of Fire lies a bull market ready to take us Back to the moon so keep calm and hoddle On And that’s it for my video today guys But where do you think we could go in 2023 price predictions for Bitcoin and Eth I’d love to know in the comments Below and while you’re down there you May also want to check out my deals page It’s over here where I have some of the Best promos and discounts in the crypto Space exclusively for the viewers of This Channel and finally give me a like And subscribe on the way out okay that’s It I’ll see you all in the next one [Music] Foreign
