Bloomberg’s Commodity Expert Says Crypto Is In Recession But Sees Positive Outcomes
The digital asset market is currently undergoing a price decline across the board, implying that the crypto winter is far from over. Bloomberg’s Intelligence expert, Mike McGlone, says this is the first actual recession in the crypto sector.
Crypto Recession Is Here
According to a recent Twitter post, Mike McGlone stated that the digital asset industry’s first actual recession comes with lower prices, high volatility, and other important features which have become a mainstay of the industry since the start of the year. McGlone believes that many are still doubtful about the industry’s future.
But, according to him, this would be the beginning of a new milestone for the virtual asset ecosystem.
The Bloomberg strategist further explained how the previous global recession in 2002, 2008, and 2009 led to the emergence of the first virtual currency, Bitcoin, along with the evolution of the broader crypto sector. However, the expert keeps mute on what he believes would be the next major milestone after the recession.
He only analyzed several possibilities that will likely happen. According to the Bloomberg expert, the crypto industry was evolving due to the introduction of innovative products and services, so the sector held great promises.
However, the ongoing Web3 evolution, heavily focused on the metaverse, is the next developmental shift in the digital asset industry. The metaverse is the next interactive phase of the internet, where physical activities can be replicated in the virtual environment using personalized avatars to represent a user’s identity.
Furthermore, the rapid development in decentralization infrastructures and data independence has made experts predict that the next major innovation will cut across multiple sectors, starting with cryptocurrency. In addition, projects such as Decentraland (MANA), Yuga Lab’s ApeCoin, and The Sandbox drive metaverse and Web3 efforts in the digital asset space.
Those efforts further complement tech and finance behemoths like Meta Platforms and Fidelity Investments, who are working toward debuting similar products in their ecosystems.
Assessing Blockchain And Web3
The building blocks behind Web3 have been cryptocurrency and blockchain technology, but the concepts depend on each other, given their relative applications in the digital environment.
Meanwhile, other technologies like artificial intelligence (AI), virtual reality, Internet of Things (IoT), and others provide decentralized applications (dApps) with information processing ability in the Web3 ecosystem. Blockchain technology is the foundation block in developing Web3 infrastructures as it allows users to efficiently decentralize Web2 services like social networking sites, cloud computing, and databases.
As a result, the combination of artificial intelligence and blockchain technology provides institutions with better ways to manage confidential data. Furthermore, cryptocurrency does not need the intervention of intermediaries before Web3 users can use tokens like Bitcoin and Ether to send and receive funds.
However, blockchain without crypto lacks the necessary platform to link networks together.
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