Before We Start I would Like To Say That THIS IS NOT FINANCIAL ADVICE AND IS FOR ENTERTAINMENT PURPOSES ONLY.
So why is this bear market going to be so influential? Let me tell you why. There are so many things happening to crypto as I write this. They are also not small things either. These things range from the problem of the lack of crypto regulation to the problem of offshore gambling. Let me give you more detail about some of these problems.
One of the most significant problems in crypto is that there is a lack of regulation in this growing space. For example, celsius and voyager are two crypto companies that filed for bankruptcy not too long ago. They went bankrupt because of the insane APY's they were giving out to people which could not be sustained in a bear market. This could all have been solved with some regulation.
Another thing is that crypto's main goal was to take power away from governments or centralized organizations. So this starts the debate of if crypto should have regulation, but I think the governments have decided that they are going to regulate this space.
Another big problem with crypto is that it's too volatile. This is just a fact for people who are entering crypto these days. It's going to up and down regularly. If crypto ever wants to support being the biggest currency in the world it has to be more stable. On the topic of stability. Stablecoins have also not been so stable since we entered a bear market. The stablecoin UST went to 0 in a matter of days taking luna and the rest of the crypto market down with it. These types of events will just invite more and more regulation.
Another massive problem is offshore crypto casinos. So this is another massive rabbit hole of crypto which I will touch in the future. But for now, you need to know that these are unregulated online casinos that are run under the radar of most governments and these casinos use crypto to place bets and gamble. Most of these are illegal and governments are starting to crack down on them. Crypto has already had a long year and this just adds more flame to the fire of crypto's problems.
For now crypto is yet to enter a massive regulatory crackdown but it coming. As it comes I will hold my crypto positions and hope for the best im holding for the long term and I will not be selling. I think in the next 5 years crypto could see mass adaption and lots of use cases. For now, lots of things are undecided.
So that's what I have for you guys today. Thanks for reading and have a great day.
KuCoin
