The ongoing crypto winter is presently shaping up into something that might last for several years. This notion is almost a mirror image of the present state of the global economy. Here, a certain recession is looming and preparing to grip the world for a period of two or more years, at least according to the Bank of England. Others are even more pessimistic about the potential of the current financial and economic system, prophesying doom and gloom that would reach well into the 2030s. For families and individuals who are already suffering in the wake of the COVID-19 pandemic, this is a worrying prospect that is becoming a launch pad for a true calamity. Cryptocurrencies, including the bitcoin network, the biggest one, share the same fate through that persistent crypto winter.
The process of the crunch already caused a range of casualties, including FTX and BlockFi. Other companies are bound to follow, as well as entire blockchain networks. But, even with the recession, the world and the science that it creates keeps marching on, which includes applicable technologies. One or more of these emerging fields stand a chance to become a catalyst for the evolution of the global economy. With that, crypto networks would also get a chance to expand and return to bullish sentiment, but also merge with these new tech and economy fields into something new and exciting.
Technological Economy Catalysts
For most of the 19th and 20th centuries, technology has been one of the most important engines for economic growth. This included several industrial revolutions, but also smaller steps that were just as important. The recession of 2008 and 2009 ended in part with the rise of the broadband internet, its services, and the powerful digitally connected devices like tablets and smartphones. In a matter of a decade, most of the world got a smartphone and some form of social media presence.
This boom in growth helped fuel many other industries as well and became good news for everyone. Presently, with the recession just starting, the new tech that will fuel its recovery is still not visible. But, as things like esports and robotics show, the inventions of today can easily become the industries of tomorrow. Even right now, there are several domains that offer the promise and potential of turning the tide of the economic slowdown in the coming several years.
The most obvious element that so many are hopeful about is the metaverse and the rising Web 3 technologies. Right now, the benefits of these technologies are already in play – it can be said that anything from Coinbase to Binance and OpenSea platforms is a Web 3 tech put into action. However, the true potential lies in their combined efforts that are all wrapped into the metaverse. This digital and interconnected space should be able to adhere to all of the principles of decentralization and freedom, but also offer a means of shared social experience that is beyond everything that humanity saw so far.
In essence, the metaverse should be the reimagining of the internet and all of the benefits and opportunities it provides, but on a much larger level. However, while this is a worthy dream, the actual potential for it to become reality has proven more than elusive over these few years. Additionally, there is a sense that major companies like Meta and Amazon are more than willing to try and create a centralized system, but less inclined to work on a shared one. That means that the metaverse will continue to grow but it is not likely to become that catalyst in the relatively near future for the crypto market.
No matter what happens with the global recession, financial experts are certain that some industries will take the brunt of the impact. Things like hospitality, but also civil engineering, and constructions are at the top of the same list. However, some industries will remain pretty much shielded and healthcare is among the most insulated. Money might be tight for a lot of people but staying healthy is not something many will put into their cutting-down category. This is why a big development in the healthcare and technology domain could be a major economic catalyst in the coming decade.
That could be anything, including massive systems overhauls that use advanced IT services (even possibly crypto) or smaller but incremental things like home-based healthcare gadgets. For example, a stable and non-invasive diagnostic device would be something like a modern thermometer that all households had to get once it became commercially available. There are many obstacles on the journey, of course, but its end destination is almost assured – the thermometer had to be invented, just like the home-based physical scanner. The question is whether or not that will occur soon enough to help the present state of the global economy.
The true leader of this potential pack and the biggest possible new industry that could turn the wheels of the global system is the environmental industry. This is a combined field that covers engineering, energy production, social sciences, biology, environmental protection and so much more. Together, they have the ability and the promise of reversing the damage of global climate change and literally saving both the planet and human civilization. Today, the impact of the rampant climate disasters is more than clear and there are no more science deniers that have a big platform or voice.
But, the damage might be already done and the coming years will show how big of a problem can the global community expect. In all of this, the solutions from the field of environmental business might turn the tide both on climate change and the economy. A so-called Green Revolution could be a massive element in that calculation and something that utilizes cryptocurrencies as much as the traditional banking system. More than that, the same revolution is necessary for all other potential fields of future business. Without it, the rampant climate change might put an end to all of the aspects of modern life as we know it.