Crypto has plummeted: Is a position in the blockchain secure?
There's been plenty of talk about crypto in recent years, with reports of impressive profits being made for those who have focused their attention on this sector. However, the volatility of crypto now means that many tech professionals are looking elsewhere for a stimulating and rewarding career. Could Blockchain be the answer?
What Is Crypto?
Shorthand for cryptocurrency, crypto refers to digital currencies that are created through the use of sophisticated encryption algorithms. In addition to being an alternative to traditional forms of money, cryptocurrency may be used as a form of virtual accounting, too. Cryptocurrency must be kept in a digital wallet, which can take the form of a "hot" wallet, in which the currency is only accessible when there is an internet connection, or a "cold" wallet, which allows access even when offline.
Crypto has seen its fair share of market ups and downs ever since its inception, but the last year has seen it take a crash that many believe may end it once and for all. A variety of factors have been cited as a reason for the drop in value, ranging from rising interest rates around the world, through to general market uncertainties triggered by the war in Ukraine.
The Effects Of The Crypto Crash
For those who had transferred their money into cryptocurrency form, the crash in value has left many facing significant financial losses. As crypto is decentralised and largely unregulated, there is no way for these investors to recoup their losses. And, of course, there will be ramifications for the many businesses that have developed around crypto itself. After all, for cryptocurrency to work, an ecosystem of other organisations is required, and further innovation (such as NFTs) emerged aligned with this "alternative finance" ethos. These, too, are facing an uncertain future.
Blockchain is a technology that underpins the delivery of crypto systems. This core technology could well be the one survivor of the current economic downturn. That's because blockchain has many and varied applications. Essentially, it is a form of decentralised ledger. As such, blockchain can also be used as a secure database application, albeit one that is rather slow to work with. Yet it could be a good option for those looking for a career in which they can truly innovate in the tech space.
Will Crypto Bounce Back?
Whilst crypto has certainly recovered from downturns before, it could well be that this time around, too much consumer confidence has been lost. However, the global crypto market is still valued at a staggering $1 trillion, with venture capitalists Andreessen Horowitz investing $4.5 billion in crypto companies even after the latest crash [1].
However, with countries around the globe currently looking at introducing their own digital currencies, there will certainly be no end to the prospect of "virtual" money. Whether there will be a resurgence in decentralised, alternative currencies remains to be seen, but many will certainly appreciate and prefer digital cash that will be regulated and protected. In the meantime, if you want to learn more about a potential future in blockchain or crypto careers, please explore our website www.inspire-tomorrow.com for the latest news and insights.
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