Every few years, the same question plagues the crypto industry: Is Bitcoin dead? Sceptics use dwindling hype, regulatory concerns and huge price falls as evidence to prove that the first cryptocurrency has reached the end of its life. However, bitcoin has a history of bouncing back every time, proving critics wrong. 

In this article, we will explain what bitcoin is, define what we actually mean by ‘dead’ in the cryptocurrency environment, and explore the current performance of bitcoin against opinions from critics and supporters to present an answer to the question ‘is bitcoin dead?’. Let’s dive into the debate to uncover the truth.

What is bitcoin?

Bitcoin is a type of decentralised digital currency that operates on a peer-to-peer network, enabling secure and trustless transactions without the need for a central government or bank. It is built on blockchain technology, a distributed ledger that records all transactions in cryptographically secured blocks, linked together in a chronological chain. 

Transactions are validated through a consensus mechanism called proof-of-work (PoW), where miners solve complex cryptographic puzzles to add new blocks to the chain.

What does ‘dead’ mean in cryptocurrency?

In cryptocurrency, the term ‘dead’ is used to describe a digital asset that has either lost its value, use, or support. However, the definition can vary depending on the context. Let’s explore some common interpretations of what it means for a cryptocurrency to be ‘dead’:

• Value decline: A cryptocurrency is considered dead if its market price has dropped significantly (to almost zero) and doesn’t show any signs of recovery.
• Abandoned development: If the development team stops working on updates and improvements, the cryptocurrency is often considered to be dead.
• Lack of use: A coin can be considered dead if it’s no longer used for transactions or has been replaced by more advanced technologies.
• Regulatory concerns: If regulations make a cryptocurrency illegal or impractical to use, this usually leads to a drop in trading and use. When this happens, many critics believe the asset to be dead.
• Network failure: Technical issues, such as a 51% attack or a lack of miners to maintain the network, can leave a cryptocurrency non-functional.

In terms of bitcoin, ‘dead’ often refers to price crashes or negative press, but its widespread use and resilient network continue to challenge these claims.

The bullish perspective

Bitcoin’s supporters are passionately challenging claims that bitcoin is dead, arguing instead that over the last few years it has solidified its role as ‘digital gold’. Bitcoins capped supply of 21 million coins mirrors the scarcity and limited availability of precious metals like gold, giving it appeal as a hedge in uncertain economic climates. 

Beyond its status as a digital asset, Bitcoin is becoming increasingly integrated into decentralised finance (DeFi), where it can be used as a guarantee for loans or other financial transactions within DeFi platforms, or to provide liquidity to DeFi pools, earning rewards in return.

On top of this, bitcoin is also becoming a useful tool for sending money across borders. When compared to traditional banks or money transfer services, bitcoin allows faster transactions with lower fees, making it useful for those who live in countries with limited access to banking.

Adoption trends further fuel optimism. For example, El Salvador has adopted Bitcoin as legal tender, demonstrating its potential for mainstream use. Additionally, bitcoin’s recent integration into US politics through growing political donations; rival proposals for its role in the financial system; Trump headlining a BTC conference, and initiatives such as a proposed Bitcoin Strategic Reserve and the rise of crypto political betting platforms like Polymarket all show bitcoin’s ability to remain relevant and prove that it doesn’t seem to be heading anywhere anytime soon.

The bearish viewpoint

However, critics of bitcoin argue vehemently to the contrary, suggesting that Bitcoin faces significant challenges that could prevent its long-term survival. One of the primary concerns is its high energy consumption, with bitcoin estimated to use 127 terawatt-hours a year, contributing to environmental issues. 

As well as the sustainability concerns, heightened government regulations and competition from more advanced blockchain technologies, such as Solana, pose a huge threat to Bitcoin’s authority. 

Finally, leaders of major financial institutions are extremely vocal with their criticisms, such as CEO of JP Morgan, Jamie Dimon, who slammed bitcoin as ‘worthless and a tool for criminals’. This public disapproval has led to widespread doubts about bitcoin’s ability to maintain value and scepticism about its long-term success.

Where is bitcoin at currently?

Currently though, bitcoin is proving the sceptics wrong. As of 11am on Monday 16th December 2024, the price of bitcoin has increased by 7.29% in the last 7 days and by 153.22% in the last year! This upward momentum follows a period of volatility earlier in 2024, probably due to the increased usage and political engagement we discussed earlier. 

Bitcoin’s price has recently just surpassed $100,000, and is currently at over $104,000. It is also ranking top of the Cryptocurrency rankings, in front of Ethereum at #2 and Tether at #3. This success is driven by increasing interest, particularly after the U.S. presidential results and the bitcoin halving 2024 event that occurred in April this year. On top of this, since President-elect Donald Trump suggested he plans to create a U.S. bitcoin strategic reserve, Bitcoin’s price has surged even more, even reaching $106,000 earlier on 16th December!

What was the bitcoin halving 2024 event?

The bitcoin halving 2024 event took place on the 19th of April this year, and reduced the reward that miners receive by adding new blocks to the blockchain from 6.25BTC to 3.125BTC. This reward decrease reduces the creation of new bitcoin. 

These bitcoin halving events take place after every 210,000 blocks are mined (approximately every four years), and are designed to control inflation and ensure that the total supply of bitcoin reaches its 21 million cap point. Historically, halvings have led to increased prices due to reduced supply and heightened interest.

This particular halving was significant because it took place during a period of economic recovery and growing institutional interest in Bitcoin, contributing to an increase in Bitcoin’s market value.

The history of bitcoin’s performance

Bitcoin has experienced several significant crashes since its creation in 2009. However, since then, every crash has been followed by periods of recovery that have helped to solidify its reputation as a volatile but resilient asset. Perhaps one of the worst crashes was in 2017-18, when bitcoin’s price fell from almost $20,000 to $3,000. Once again, though, bitcoin was able to regain momentum and reach new heights in 2020, fueled by the uncertainty caused by the pandemic. 

More recently, the market saw another downturn in 2022, when it lost over 60% of its value, but it bounced back in 2024, reaching this new $104,000 peak. This history of huge fluctuations highlights bitcoin’s ability to recover, even after huge crashes, and suggests that this trend may continue in the future.

So, is bitcoin dead?

While critics continue to argue that bitcoin is on its way out, its ability to bounce back after periods of such huge decline, as well as its current peak in market value means that it is clear (to us anyway) that bitcoin is not ‘dead.’ It does, however, remain highly volatile, with its fate relying on certain factors such as wider adoption, regulatory clarity and the evolving cryptocurrency market. 

If you’re interested in working within the cryptocurrency space, or you’re looking for a talented bitcoin expert to join your team, contact Plexus today. We help professionals to navigate the ever evolving industry of web3, blockchain and crypto!

The internet has evolved massively since the days of clunky websites and dial-up emails. Now, we’re standing at the edge of a new era—Web3. But what is it, really? And why’s everyone talking about it?

In this article, we’ll answer questions such as ‘what is Web3 technology?’ and ‘what is Web3 in crypto?’, explore the differences between Web1, Web2 and Web3, and discuss the key concepts, benefits, and challenges of Web3.

Web1 vs. Web2 vs. Web3: What’s the difference?

Web1, 2 and 3 mark the three different iterations of the internet. The differences between them showcase the development that the World Wide Web has gone through to reach what we know today. Let’s explore the definitions of each to gain a better understanding: 

What is Web1?

Web1 is the earliest version of the internet, created in the early 1990s. It heavily consisted of static web pages with minimal interaction, interconnected with hyperlinks. This lack of user engagement and UGC has led to it often being referred to as the “read-only web”.

There were no social media platforms, video streaming services, or dynamic content – most sites were informational, and businesses used them primarily for sharing brochures or contact details.

Despite these limitations, Web1 laid the groundwork for the internet’s evolution by connecting users across the world. As technology improved, the need for a more interactive and engaging web gave rise to Web2, marking the transition to the internet we know today.

What is Web2?

According to NordVPN, Web2 is the ‘current version of the web’, characterised by interactive, dynamic elements, the rise of social media platforms and online shopping sites. It emerged in the mid-2000s and created a dramatic shift in how people used the internet. Key features of Web2 include:

• User-Generated Content (UGC): Websites became interactive spaces where users could contribute content, such as blogs, reviews, and social media posts.
• E-commerce: Online shopping platforms like Amazon and eBay revolutionised how people buy and sell products.
• Mobile web: The rise of smartphones made Web2 accessible anywhere, leading to the creation of mobile apps and responsive websites.

Although Web2 revolutionised the way we interact with websites, it also allowed a few tech giants to monopolise the web, owning the majority of the websites, controlling the spread of information and collecting user data to exploit for monetary gain. The centralised servers that store user data also cause security concerns, as hackers only need to breach one system to gain access to huge amounts of data. These issues have paved the way for the development of Web3.

What is Web3?

Web3 is the next generation of the internet. It is a decentralised web that allows users to have more control over their data and was built out of concerns about privacy and security that come with Web2. The primary function of Web3 is to take control away from a single governing body to distribute it across multiple participants.

This decentralisation creates a more democratic internet, where users can interact with platforms and services without relying on centralised authorities that often dictate terms and conditions. This shift not only enhances user privacy but also significantly reduces the risk of data breaches and misuse of personal information that has become prevalent in the Web2 landscape.

What are the core concepts of Web3?

Web3 is characterised by a number of key technologies and principles. Let’s explore the core concepts of Web3:

• Decentralisation: The main concept of Web3 is an internet that is owned by a network of participants, rather than a single centralised authority. This allows users to gain more control over their data and interactions.
• Blockchain technology: Blockchain technology is a database that stores data in blocks that are linked together in a chain. It enables transparent record-keeping and allows secure transactions between parties without the need for an intermediary, enhancing privacy.
• Smart contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code on a blockchain. They automatically execute the agreed-upon actions, without relying on third-parties. 
• Cryptocurrencies: Cryptocurrencies are digital currencies that enable transactions within decentralised networks. 
• Non-Fungible Tokens (NFTs): Unique digital assets that represent ownership of specific items or content, such as art, music, or virtual real estate. 
• Interoperability: Interoperability is the ability for different platforms to communicate and work together, enabling browsers to use their assets across multiple services. 
• Tokenisation: The process of converting assets into digital tokens on a blockchain, which can represent ownership or value. 

These core concepts work together to create a more user-centric landscape, setting the stage for the next evolution of the internet.

What are the benefits of Web3?

As we’ve already mentioned, the aim of Web3 is to create an online environment where creators own their data and have more of a say on how it is used and distributed. It has a number of different benefits, including:

• Users have control over their data, reducing reliance on tech giants.
• Blockchain-based systems are open and verifiable, reducing fraud.
• Web3 enables new business models, such as Decentralised Finance.
• Decentralised systems offer enhanced security and privacy protections.

What are the drawbacks of Web3?

Despite the advantages of Web3, there are a number of concerns around the full implementation of the technology. Let’s run through some of the main criticisms of Web3:

• Scalability: Many blockchain networks struggle to handle large volumes of transactions simultaneously. As user demand increases, network congestion can lead to slower transaction times and higher fees.
• User experience: Using decentralised applications and managing cryptocurrencies can be daunting for non-technical users, limiting widespread adoption.
• Regulatory challenges: Governments are still trying to decide how to regulate cryptocurrencies and decentralised platforms, leading to uncertainty.
• Security risks: While blockchain technology is secure, Apps and smart contracts can still be vulnerable to bugs and exploits. 
• Environmental concerns: With growing concern for the planet, the substantial ecological impact of mining and maintaining these networks is causing scepticism. 

How Plexus RS Can help

Web3 can be a challenging sector to navigate, especially if you aren’t fully clued up on it. If you want to hire some web3 talent, but don’t know where to start, we are here to help! On the hunt for a specialised Web3 recruitment agency to connect you with top talent? Looking for a job within the Web3, crypto or blockchain space? Contact Plexus RS today! 

With the dramatic rise of cryptocurrency in the early 2010s, the emergence of the Web3 space took the tech world by storm, and 90% of top internet apps were expected to be Web3 enabled by 2025. Since then, though, the hype has started to die down a bit. But what does this mean for Web3?

In this article, we will explain what Web3 is, explore the current state of Web3 and the potential challenges it faces, and ultimately answer the question ‘is Web3 dead?’

What is Web3?

Web3 is the third generation of the internet. It is a decentralised web that allows users to have more control over their data. It was built on the principles of privacy and security, and takes control away from a single governing body to distribute it across multiple participants in the network.

Key features of Web3 include smart contracts – self-executing agreements coded directly into the blockchain, tokenization through cryptocurrencies and non-fungible tokens (NFTs), and interoperability among various platforms. 

Let’s explore some of the main benefits of Web3:

• User ownership: Individuals have full control over their data and digital assets, reducing reliance on centralised platforms.
• Decentralisation: Power and control are distributed across a network, minimising single points of failure and enhancing security.
• Enhanced privacy: Users can interact without exposing personal information, as many Web3 applications are designed to prioritise privacy and data protection.
• Reduced intermediaries: By enabling direct peer-to-peer transactions, Web3 reduces the need for intermediaries, which can lower costs and increase efficiency.

Overall, Web3 aims to create a more open, user-centric internet, fostering collaboration and increasing transparency and trust.

What are Web1 and Web2?

To gain a real understanding of Web3, you need to know what came before it. Web1 was the first iteration of the internet, created in 1983. The main function of Web1 was to provide information, so it primarily featured basic web pages that displayed information but offered minimal interaction. Websites were often hosted by individual companies, which led to a centralised system where most of the content was controlled by a few organisations.

The evolution into Web2 happened in the early 2000s, and it is closer to the internet we know and love today. It is often referred to as the ‘social web’ or dynamic web’, as it brought about the creation of user-generated content on platforms such as social media sites, blogs and forums. Websites started to become more dynamic, incorporating features that allowed users to interact with content, and offer more personalised experiences with algorithms that recommend content based on user behaviour.

What is the current state of Web3?

The fate of Web3 has become a topic of debate recently. Sceptics argue that Web3 is dead due to the interest in blockchain technology fading and the growing sense of disappointment with cryptocurrencies. 

However, others argue a more optimistic point of view. Large brands jumped on the Web3 bandwagon in the early 2020s. For example, in 2021, a digital Gucci bag was sold on the gaming platform, Roblox, for $715 more than the value of its physical counterpart, in 2022 Google signed a deal with crypto-trading platform, Coinbase, to allow customers to pay for cloud services using certain cryptocurrencies, and commercial titans such as Mastercard, Nike and Deloitte were building on blockchain throughout 2023.

Challenges faced within the Web3 space

Despite the number of large-scale businesses jumping on the Web3 trend, there are still a few challenges within the Web3 space. For example, regulatory uncertainty poses a significant hurdle, as governments around the world are still developing regulations for key components of Web3. Coupled with concerns about the complexity of many Web3 applications and the growing scepticism around security can lead potential users to question the practicality and sustainability of such platforms.

The future of Web3

Despite the challenges faced in the Web3 landscape, its future remains promising, particularly in several key areas. Decentralised finance (DeFi), for example, seeks to disrupt traditional financial systems by offering services like lending, borrowing, and trading without intermediaries. DeFi platforms are already attracting substantial investment and user interest, providing innovative financial solutions that empower individuals globally.

The integration of non-fungible tokens (NFTs) within the gaming space would allow players to truly own in-game assets, building a new economy where gamers can trade and sell their digital items across multiple platforms, improving engagement and creating new revenue models for investors. 

The processes involved in managing people’s identities online represents another important application of Web3. With increasing concerns over data privacy and security, decentralised identity solutions can give users more control over their personal information, allowing them to verify themselves across services without relying on centralised databases.

Looking ahead, several innovations could reignite interest in Web3. Layer 2 solutions, designed to improve scalability and reduce transaction costs, aim to make blockchain technologies more accessible and user-friendly. Additionally, advancements in interoperability protocols will create more seamless interactions between different blockchains. 

The role of recruitment in Web3

As the Web3 landscape evolves, the demand for specialised talent is growing, making recruitment an essential element for success. Currently, a variety of roles are in high demand, including blockchain developers, smart contract engineers, and decentralised application (dApp) developers. These professionals are vital for building and maintaining the innovative technologies that underpin Web3. Additionally, skills in user experience (UX) design and product management are becoming increasingly important, as creating user-friendly interfaces is critical for attracting and retaining users in a complex environment. 

A strong recruitment strategy is essential for shaping the future of Web3 companies. By prioritising diversity and inclusivity in hiring practices, companies can attract a broader range of perspectives and ideas. Focusing on skill development and continuous learning can help teams stay ahead of rapidly changing technologies. Effective recruitment can also streamline the onboarding process, ensuring that new hires are integrated smoothly into the company culture and operations.

How Plexus Can help

The Web3 space has been through a dramatic shift since its conception- from initial excitement, to a phase of disillusionment, to now what is seeming to be a renewed focus on practical applications. While challenges are still present, the potential for Web3 remains significant, so Web3 certainly isn’t dead!

If you’re looking for a specialised Web3 recruitment agency to connect you with top talent, or are a professional within the Web3, crypto or blockchain space looking for a job, contact Plexus RS today!