Crypto Payments in 2022-2023
Despite the bumpy ride that crypto has had thus far, the crypto industry has been on an ascensional trajectory since the birth of Bitcoin in 2008. More than 300 million people of all ages and backgrounds have heard of and used Bitcoin and cryptocurrencies. People have seen cryptocurrency ads on YouTube, TV, and online newspapers at the Super Bowl and elsewhere.
The new cryptocurrency infrastructure and products offered by the cryptocurrency industry allow people and businesses to transact directly with each other without institutions acting as middlemen. These are also referred to as DeFi – decentralized finance. By eliminating friction in terms of technology, contracting, and coordination between multiple parties, DeFi has the potential to reduce costs and increase payment speed.
Over the summer, INNOPAY and The Paypers measured interest in crypto infrastructure, tokens, and services for banks, payment institutions, merchants, merchants, and AP/AR departments to understand how advanced the cryptocurrency payments industry is. The technology stack underlying crypto payments has the potential to change how people pay. It also can reinvent the very dynamics of the digital economy. This is due to the rapid evolution of new regulations (countries banning and then quickly adopting cryptocurrency, such as Russia) and technology.
Bitcoin Mining Difficulty and Hash Prices Continue to Rise
The rising difficulty forces miners to sell off holdings and mining rigs in the final stages of capitulation.
The Bitcoin mining industry has struggled this year, as the price has failed to provide any ray of hope. Energy prices in North America and Europe are rising at an alarming rate, compounding Bitcoin miners’ woes. On October 23, the Bitcoin mining difficulty increased by 3.44%. It set a new all-time high since 2020, and the hash price continues to rise. Bitcoin appears to be repeating its historical performance from 2018. However, if the current Bitcoin mining graph follows the 2018 scenario, the final bottom is near.
