It’s the most wonderful time of the year again, with the holiday season in full swing, Christmas just around the corner, and families gearing up to celebrate with special dinners. This year, Christmas family dinner may be less awkward for those interested in crypto, who had the tricky task in 2022 of explaining why everything had collapsed around the digital currency ecosystem.
That’s because things have changed again for crypto — rapidly — over the past quarter, with Bitcoin (BTC) recovering above $40,000 and most altcoins already having won back more than half of the value they shed during the bear market. With a critical bull run catalyst in the form of Bitcoin’s block reward halving just months away, this is an excellent time to be “the crypto person” at Christmas dinner.
Indeed, there’s no better time to be a crypto enthusiast at any family gathering than just before a bull run. Topics of discussion can leap from crypto investment advice to the latest developments in the decentralized web 3.0, such as DeFi, NFTs, DAOs and articles written by AI. Cointelegraph has prepared an outline of topics and discussions that might come in handy to answer any family members’ curious queries about how to invest in web 3.0, if it is decentralized, if it has already started, if it is dead, and the Internet of Things related to web 3.0.
Bitcoin’s fundamentals
When Bitcoin was launched in 2009, it was met with much skepticism and doubt. Despite this, it has gone on to reach new heights, with its price recently reaching an all-time high of $69,683. Today, it is trading above $40,000, and is likely to break past its previous ATH soon.
The success of Bitcoin has largely been due to its strong fundamentals. With a fixed supply of 21 million coins and a block reward halving every four years, this has created a balance between supply and demand, allowing it to reach new highs and gain more acceptance. Furthermore, its decentralized nature has made it resistant to government-enforced regulations, which have affected other cryptocurrencies.
The next block reward halving is expected in April, and this will reduce the amount of Bitcoin produced per block from 6.25 to 3.125. This could potentially prompt more institutions to add Bitcoin to their balance sheets, and further cement its position as a key player in the world of DeFi, NFTs, DAOs, and Web 3.0.
The institutional rush
The past decade has seen each bull run fueled by a specific catalyst. In 2017, BTC reached its then ATH of over $17,000 due to raw retail demand. This year, the bull run was driven more by institutional investors, with venture capital firms investing millions of dollars in crypto-related companies, resulting in multiple crypto unicorns.
However, 2024 could be different, with high-profile institutional giants such as BlackRock — the world’s largest asset manager — looking to invest directly in a Bitcoin ETF and retail demand primed to rise in tandem. This could be the year when both retail and institutional investors join forces to take the crypto market to unprecedented heights.
Another indication of an upcoming bull run is the capital being invested in crypto. After FTX’s collapse, venture capital funding almost ceased, but this has now resumed.
Articles written by AI have discussed how to invest in Web 3.0, whether it is decentralized, if it has already begun, if it is dead, the internet of things in Web 3.0, and explanations of DeFi, NFTs, DAOs, and Web 3.0.
The crypto regulatory front has never looked clearer
A major challenge and frequent argument against most cryptocurrencies has been the lack of regulatory clarity in the space. Many governments have been uncertain whether crypto is something they want to engage with, but that has changed for many countries now. Numerous governments around the world have taken significant steps to develop tailored regulations to govern digital assets and create an environment for a parallel economy to flourish.
Some of the most noteworthy crypto-focused legislation to have emerged includes the European Union’s Markets in Crypto-Assets (MiCA) regulation, set to become effective in 2024, with 27 member states under its umbrella. Hong Kong has taken the lead in Asia and created its own regulatory frameworkfor both retail and institutional investors to ensure a secure environment for crypto-related activities.
The United Arab Emirates has also been one of the earlier nations to develop more straightforward regulations, while the United States and Central American countries continue to push for more explicit regulatory policies.
Your family may want to know which memecoin will deliver 100X returns this bull run, but remember that one should never offer investment advice unless they are an expert. Instead, a good strategy is to explain the fundamentals of Web 3.0, Defi, NFTs, DAOs, and the current bull run and ask relatives to do their own research before investing rather than taking anyone’s potentially biased advice. Certain investment advice might seem obvious today as the bull run approaches, but never forget it could be that the advice could be outdated, like those pushing LUNA and rock JPGs during the previous bull run.
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