Here we go with this new year 2023! 🚀

The entire Ambrosia team wishes you a happy new year. Health, happiness and prosperity to you all!

Will the market decline continue in 2023?

The trend for this new year remains very pessimistic. The IMF predicts that a third of the world economy will be in recession by 2023, including some of the biggest powers.  

You probably know the saying: "when China sneezes, the world catches a cold". This is exactly what the IMF fears! For the first time in 40 years, China's growth should match global growth. This is due to its very strict management of the Covid crisis.

As for Europe, the predictions are also quite gloomy, notably because of the Russo-Ukrainian conflict and record inflation levels.

Finally, for the US, although it is supported by a soaring dollar, a sharp economic slowdown is also expected.

Of course, this pessimism is likely to extend to the crypto markets. 2023 will therefore be a year of accumulation! 👊🏻

Despite the crisis, investors continue to accumulate crypto

The total capitalization of the crypto market has grown from $3,000 billion to $800 billion in just a few months. Regarding Bitcoin, the leading crypto currency in the market, its price has dropped from $69,000 in November 2021 to $17,000. A loss of almost 80% of its value 🥵

Nevertheless, small Bitcoin savers continue to accumulate unabated. There are now nearly 1 million Bitcoin addresses with at least 1 Bitcoin. A record!

But how do they keep their heads during this bearish period?

✅ Investing in Bitcoin requires first and foremost an understanding of its fundamentals and social utility;

✅ Investing only a small portion of one's wealth so as not to be overexposed;

✅ Apply a programmed saving that corresponds to buying Bitcoin at a regular pace, and this regardless of the market prices.

The total capitalization of the crypto-currency market has grown from $3 trillion to $800 billion in a few months. Regarding bitcoin, the main crypto-currency in the market, its price has dropped from $69,000 in November 2021 to $17,000. A loss of almost 80% of its value 🥵.

Crypto adoption VS internet adoption

The evolution of the diffusion curve of a disruptive innovation is a bit like how a party turns out.

Early enough in the evening, a person starts dancing by himself. Everyone looks at him embarrassed! To support him, some of his friends join him. Then more and more people start dancing. The paradigm shifts and it becomes embarrassing not to party. So everyone ends up on the dance floor wiggling 🕺

The internet has done exactly the same thing! In just over 20 years, almost the entire world has gotten into it. But when it comes to crypto, are we going to see such massive adoption?

It is estimated that 4% of the world's population holds digital assets to date, or 320 million people worldwide. 

But this is just the beginning! According to Michael Saylor's studies, we should be 1 billion users by 2030, and then 5 billion by 2045! 🔥

El Salvador promotes Bitcoin

El Salvador was the first nation to officially recognize Bitcoin as a legal tender. That was in September 2021!

To build a country that relies on cryptocurrency, its President, Nayib Bukele, wants to educate younger people on the use of Bitcoin. The education project, dubbed "My first Bitcoin," aims to introduce 250,000 students to Bitcoin by 2023.

Indeed, it is by having a better understanding of the fundamentals of Bitcoin and its social utility that mass adoption will be possible!

Bitcoin is getting greener

Japan's largest electric power company, Tepco, is turning to mining. The company has installed photovoltaic panels throughout Japan and is now experiencing energy surpluses.

Tepco's goal is to use the surplus energy to power the mining machines that secure the Bitcoin blockchain. A first farm is already in place in Tokyo! ⚡️

This proves once again that Bitcoin is only a problem for the environment if it is not exploited in an intelligent and sustainable way.

That's it for today! See you in two weeks for a new issue 😁

Victor Demonchaux

Co-founder & CEO