DOOR App: Crypto Adoption Will Continue To Grow Currencyly In 2023 Amid The AMOUNt Of Rintangan

Photo: Doc. DOOR

JAKARTA - The year 2022 has become a less friendly year for crypto investors. There were a lot of shocks that occurred and caused the price of crypto assets to drop by more than 70 percent.

There are several factors that cause the decline in the price of crypto assets such as Bitcoin (BTC) and Ethereum (ETH), including the Terra Luna case, Three Arrows Capital (3AC), to the bankruptcy of the FTX crypto exchange. However, seeing the amount of return on investment instruments, the movement of crypto assets is in line with the US and global stock index during 2022 and is even better than US bonds.

"The events that have occurred since mid-2022 have become a valuable experience for all parties, not only investors, but we as exchanges to continue to be consistent in providing security and comfort in investing," said Chief Marketing Officer of Timothius Martin's DOOR in his statement, Wednesday, January 11.

Timo added, regardless of the volatility of crypto markets and low trading volumes, it can be seen that institutional crypto adoption will increase in 2022.

"But a recent Institutional Investor survey shows that investors still believe cryptocurrencies will survive, regardless of price volatility or unfortunate events caused by several parties. Seeing the events of last year, investor interest today will be more focused on crypto assets that are considered of higher quality, such as Bitcoin and Ether and pay more attention to fundamental factors such as tokenomics, the maturity of the ecosystem of each project, and market liquidity," said Timo.

Looking at the other side, even though the price of crypto assets has decreased, in fact, the adoption of crypto assets continues to grow and more and more countries in the world are regulating crypto assets.

"Crypto regulation is a good thing for investors and industry. It can provide good potential to protect long-term investors, prevent fraud activities in the crypto ecosystem, and provide clear guidance to enable companies to innovate. In addition, regulatory clarity can increase public trust in crypto," said Timo.

Crypto investment still attracts public attention. Based on data from the Commodity Futures Trading Regulatory Agency (CoFTRA) until 2022, the number of crypto investors has reached 16.55 million with a transaction value of IDR 296.66 trillion.

In addition, in terms of regulation, there are more than 10 countries including South Africa, England, Australia, Ukraine, the United States, Japan, Germany, Brazil, Italy, France, Canada, the Philippines, South Korea, Turkey, Mexico, India, Thailand, Vietnam, Argentina, Iran, and Indonesia which have regulated crypto asset investments related to exchanges, taxes, consumer protection, and so on.

"The crypto industry sector continues to grow and mature, so regulators around the world need to provide clarity and guidance in responding to the massive increase. In addition, these regulations also help build trust and will encourage even greater adoption. In Indonesia, we really appreciate the government through CoFTRA, which will then be continued by the Financial Services Authority (OJK), which has supported the development of this industry. We welcome this to ensure the progress of the crypto industry in Indonesia," said Timo.

Timo added that the advancement of the crypto industry in Indonesia was also marked by the adoption of blockchain technology in various large institutions that were interested and had started investing in crypto assets and taking advantage of blockchain technology such as fintech companies PayPal and Square, then Tesla to Bank Indonesia which some time ago launched the Central Bank Digital Currency (CBDC) whitepaper, namely the Garuda Project.

"The enormous amount of attention from various well-known institutions will certainly attract many parties and further positively encourage the growth of the crypto industry from time to time," said Timo.

Globally, crypto asset ownership continues to increase. Triple A, a blockchain company based in Singapore, estimates that the total worldwide ownership of crypto assets reaches 320 million users or an average of 4.2 percent of the world's population of 8 billion people. Meanwhile, Asia is the country with the most crypto asset holdings reaching 130 million people, followed by Africa with 53 million, and North America with 51 million.

"Behind the significant number of crypto asset investors around the world, it is clear that 2023 will certainly be full of challenges. Starting from rising interest rates, inflation, recession issues, to geopolitical conditions that are still not stable, it certainly needs special attention to investors. However, crypto assets and blockchain technology continue to form a mature ecosystem even though they are still relatively new in age, but thousands of innovations have been born with use-cases capable of disrupting various industries such as non-fungible tokens (NFT), Decentralized Finance (DeFi), to Web 3.0 and have a positive impact on users," concluded Timo.