Why I’m Not (Too) Concerned About Crypto’s Tumble
Recent weeks have seen crypto prices fall precipitously to many’s disappointment.
Recent weeks have seen crypto prices fall precipitously to many’s disappointment. I too have seen my funds diminish day by day to no end. As far as my profits from cryptocurrencies go, it’s a shame. But I’m not concerned about crypto as a whole, here’s why:
1. Cryptocurrencies are risky, and I’ve always invested accordingly
Some people sold the promise of the eternal bullish market in crypto, and consciously or unconsciously, some of us felt it could never go down. But smart investors know that crypto is still young, and somewhat of a bet (especially less mainstream currencies). If you know crypto to be risky, you invest only what you can afford to lose, and you invest in order to learn.
2. Prices are down, but blockchain technology is as strong as ever
Even if BTC and ETH were worth $1 each, I’d still bet on blockchain as a means to create new and amazing things. Blockchain, among other things, allows people to store digital value and own all sorts of digital assets, from their content to their identity on the web. In other words, blockchain is not just made to separate money from the government and banks. So I believe HODLers might struggle with HODL, but BUIDLers will keep BUIDLing amazing things. This brings me to:
3. Less speculation could mean more valuable products.
As people realize crypto is not just speculation and in fact its highly volatile and risky, developers might focus instead on building for other types of value that can be produced with blockchain technology such as better voting systems, fairer distribution of value excluding unnecessary middlemen, and more transparent social media platforms. This was Ethereum's raison d'etre before the creation of "million-dollar monkeys" as Vitalik Buterin says.
In summary, as non-believers use crypto’s tumble to demand responses from the crypto charlatans (and there are many charlatans in this industry, unfortunately), keep in mind that there’s a reason some of the smartest people in the development community are flocking towards web3, and that is a bet on the power of its technology and not the value of its coins.
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