In 2022, the cryptocurrency sector went through a bad time as several projects failed. The Collapse of FTX, however, was one incident that struck the hardest. The Sam Bankman-Fried-led discussion group ran into serious difficulties.
The exchange not only filed for bankruptcy afterwards, but it also brought down a number of other firms. Massive adjustments were also recorded in bitcoin.
But in the long run, it might have been beneficial for Bitcoin [BTC]. The biggest cryptocurrency in the world fell to a low of $15.5K immediately following the bankruptcy of FTX. The asset is currently on a recovery route, so the crash was thought to be necessary.
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It didn’t end there. The FTX scenario affected the king coin, although it was expected to have long-term benefits. For instance, SBF’s dishonest actions and lack of regulatory oversight were more to blame for the FTX fiasco.
It doesn’t actually call into doubt the legitimacy of Bitcoin or other cryptocurrencies, therefore.
There isn’t enough discussion of how secure Bitcoin’s decentralized public blockchain is. Bitcoin’s role as a store of value and alternative asset is maintained, however, thanks to the network’s confidence. As individual investors bought Bitcoin at deep discounts, the adoption rate also increased.
Additionally, Bitcoin must move past the current short-term turbulence or volatility if it is to enter the next bull market.
