RE: A particular economic year 2022
Another solid read @josevas217
This year has been indeed quite insane for crypto space and every other market out there. And it's hard to imagine that 2023 could get any worse.
War that started in Ukraine lost its impact. Inflation is slowing down. FED already increased interest rates to high levels and will have to slow down soon. So it seem to me that all heavy issues we were dealing in 2022 are slowing down greatly.
Next year will be a year of recession and raising unemployement and this is what I would expect. Hard recession and high unemployement should result with FED losing on their fiscal policies, which will benefit financial markets. That's what I expect anyway.
Recently the fall of FTX due to the mismanagement of funds
I kind of disagree with that statement.
FTX surely had problems with managing funds, but they failed due to panic bank-run caused by CZ from Binance. Regardless, it caused loads of pain to the market. And yet, bitcoin didn't really drop heavily. I personaly expected that there will be more panic sale. But it seem to me that it is already very hard to scare investors to sell their BTC at current price level. Don't you have similar impression?
In particular, I will insist in saying, centralization failed, but not decentralization. The whole blockchain kept going, especially the Bitcoin blockchain
That is interesting thought. And I agree that Bitcoin blockchain keep going and decentralization serve well in that case. But decentralization = lack of progress. It is hardly possible to make any sort of change in code. And for that reason most crypto cannot really be decentralized. Because that would mean that they will stop evolving.
Cheers, Piotr
Well, yes, the complicated things have been slowing down, that is a reality, but there are other things like unemployment that continue to increase. I believe that the effects of economic policies are being seen with a certain delay, even months, but it is still impossible to know what is going to happen.
There is no doubt that Binance played an important role in pushing FTX into the abyss, evidently CZ is very good at marketing, he is a smart guy.
And yes, decentralization can slow down many processes, in this case centralization has an advantage in terms of streamlining processes.
Higher unemployement -> more likely that FED will slow down with interest rates hikes. At least that's how I perceive it.