Crypto In 2022: The Worst Year For Bitcoin, Ethereum; Is This Beginning of The Fall of Cryptocurrency?

The year 2022 has been the worst year for the cryptocurrencies, the virtual assets including Bitcoin, Ethereum and Polygon saw sharp plunges multiple times in the current calendar year. On the outlook for 2023, Iyer said, “Cryptos will experience a downfall for some more time, as the systemic issues in the crypto world are not addressed fully and may experience an upward trend post 6-8 months of 2023.” FTX, which is among the top-five crypto exchanges in the world, has faced a liquidity crisis and its CEO Sam Bankman-Fried earlier told investors that the company was facing a shortfall of up to $8 billion from withdrawal requests and needs emergency funding. On the taxation front, Archit Gupta, founder and CEO of Clear, said, “We can expect more clarity around taxation of gains on sale of cryptocurrencies, more refinement of laws going forward which will help bring lot more clarity in this space.” In the Budget 2022, Finance Minister Nirmala Sitharaman introduced Section 115BBH, which levies a 30 per cent tax on profits made by trading cryptocurrencies on or after April 1, 2022. There is a lot of interest and activity around Web3 development, this will lead to more evolution in this space and use cases of blockchain tech will grow.” RBI Governor Shaktikanta Das on Wednesday said the biggest concern with the private cryptocurrencies like Bitcoin and Ethereum is that they do not have any underlying value, and if they are allowed to grow, the next financial crisis will come from them.