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Bearish Crypto Market Is Not A Big Deal — The History Proved It
Acknowledging the downtrend crypto market does not mean this is the end of it. We have been through many phases in the fintech market but we can see the 10-year loop happens naturally. Technology needs time to prove its stance, all in all, people always desire better money and better internet. Read the analysis below.
Why did crypto happen?
Money is all about faith. Many people in our world have faith in their financial and monetary systems. We trust our governments, central banks, and private enterprises to keep our money safe. We pay taxes and fees to financial-services corporations for the privilege of trust (a multi-trillion dollar industry). Over the previous few centuries, this foundation of trust has been critical to our economic success.
Many people, however, do not have much confidence in their financial systems. Even in the richest and most prosperous countries, the financial crisis can still happen. In the United States, recent events, particularly the Great Financial Crisis of 2008–09, have damaged trust. Many people are reconsidering their trust in the global monetary system in response to COVID.
Observing the problem in decentralized finance, Bitcoin was born with the foundation of decentralization. Bitcoin offered a solution to the core problem: validating the authenticity of digital content through a distributed network.
This ushered in a new Internet phenomenon: provable scarcity, allowing for the direct transfer of value without the use of intermediaries. All we need is internet connectivity and faith in Bitcoin’s open-source code to exchange Bitcoin. Just as billions of people already trust the Internet for free worldwide knowledge exchange, 220 million people now trust a blockchain for free global value exchange.
Why does crypto matters?
While Bitcoin appears to be designed to solve a payment problem, inventions rarely proceed as planned. Bitcoin’s price and transaction fees climbed as demand expanded, making it more valuable as an investment vehicle (or store of value) than a payment tool for many (medium of exchange). Most intriguingly, new inventors expanded on Bitcoin’s concepts in novel ways. Ethereum’s contribution was the use of a distributed ledger for computation as well as currency.
Blockchains have piqued the interest of developers as decentralized computing platforms. Their objectives are many, but they can be summarized as attempting to improve money and the internet.
Better money: It means free of arbitrary monetary policy, censorship, and monitoring, as well as financial systems that are more reliable, accessible, efficient, and less expensive.
Better internet: applications in which users own their data rather than renting it from a platform, creators are better compensated, and communities regulate them; digital assets (NFTs) that are more liquid, transferable between platforms, and better suited to managing digital rights.
Why We Cannot Resist The Development of Crypto?
Crypto will revolutionize the Internet’s value, and thus the Internet itself. The way we own, sell, purchase, trade, exchange, and reward will be rewritten by blockchains. Crypto (software money) will saturate money — and all we do with it — as software saturates our world. The intrinsic qualities of blockchain — instant value transfer, provable scarcity, and user ownership — could reconfigure trillions of dollars in market capitalization across payments, finance, gaming, content, social networks, and other industries.
Right now, we’re having so many perks with this technology.
Web3 is so much better for creators than Web2. Only on Web3, the value of a person when sharing or creating content is truly recognized by the community, not just a few middlemen (the centralized platform) who could make a decision to pay or not to pay for the creators.
Hundreds of projects were launched, thousands of new developers were hired, and over 100 million new users joined the crypto space in 2021; the total crypto market cap increased by a trillion dollars; DeFi’s total value locked 4x to $250 billion; Tom Brady and Gisele backed FTX, igniting a wave of tastemaker interest in crypto; pleasrDAO rescued the Wu-Tang Clan album; ConstitutionDAO almost bought the constitution; and more. All of these facts sound insane.
The past 20 years’ history proves it. Those who lived through the dot-com crisis 2000 and ‘2008–2010’ may know for sure this is the Golden Time to build some things great. After the crisis, a brighter future came, it would work the same for the crypto market. Another point to notice is that technology has shown its 10-year cycle: 2000s — dotcom, 2010s — mobile internet, 2020s — web3, the changes may encounter several difficulties at first but all of those challenges are just a simple natural selection, only real valuable companies will survive after those crashes.
Cryptocurrency is still in its infancy. It’s full of turbulence, but it’s also full of opportunity. To reject crypto as solely speculative is to misunderstand the history of financial innovation, which has always had its share of miscreants, and to overlook the enormous potential crypto offers to improve financial systems.
To dismiss crypto as too sluggish, expensive, or complex to be useful in the future is like criticizing the Internet when it was still dial-up. While there are fair concerns about crypto’s user experience, cost, speed, and environmental impact, these aren’t doomsday signals for the movement; rather, they represent possibilities to grow. The basic line is that billions of people want a better financial system and an improved internet, and a new generation of engineers is inspired to help them achieve their goals.