The pioneers of this market are Bitcoiners. It is the original cryptocurrency, they have been here the longest, and they have the most experience. Because of that, they have already seen, lived through, and dealt with most issues that other blockchains are just only beginning to go up against.
Since Bitcoiners have already seen and lived through these issues, they try to warn other people in crypto about the scams in the space. How most people will lose most of their money by investing in them, and how they would be much better off simply buying Bitcoin.
However, Bitcoiners' patience runs low when people keep making the same mistakes time after time. And that is where the toxic Bitcoin maxi mentality comes from. People who are fans of the entire market claim that they are a deterrent to the market. While Bitcoiners claim that they are trying to protect you.
Over the years, the advice that Bitcoiners have given has been quite simple.
1. Buy Bitcoin
2. Take it in self-custody
3. Keep it safe
4. Remain humble and don’t chase yields
In a market that has evolved where earning profits and yield is everything. This advice from Bitcoiners has fallen on deaf ears. But over the last year, Bitcoiners turned out to be right about most things. Taking Bitcoin into self-custody and not chasing yields would have kept you safe from all the insolvencies from crypto lending businesses last year. Buying Bitcoin would have kept you safe from banking collapses, and the list goes on.
The famous phrase, “History does not repeat itself, but it does rhyme,” exactly describes the cryptocurrency market.
Each cycle there is a new “hyped” movement in the market. Initially, it was ICOs, then it was DeFi and Yield Farming, then NFTs, and then Meme coins. If you were around throughout the entire last bull cycle you will remember all too well how meme tokens took over the market. First, it was tokens with food names, then Dogecoin, then Shiba Inu, and then thousands of copycats.
The market was overvalued and needed to be flushed back down to its real value. The current macro environment forced that to happen quickly and plunged us into a deep bear market; putting an end to the meme coin cycle. Many of us hoped that would be the end of it, and that the market would move onto more substantial projects that have real ambition.
But we must always remember this fact in the crypto market. History always rhymes, and this is still largely an unregulated casino. Where people can make money, they will do anything to make that happen. There is no better example of this than meme coins.
With that in mind, an entirely new meme coin cycle has begun in the market. Meet PEPE.
While the last cycle belonged to Dogecoin, Shiba Inu, and hundreds of other dog coins. It looks like this new cycle will belong to frogs. I actually must admit that I’m surprised this didn’t happen sooner with Pepe being such an influential meme throughout crypto’s history.
For those who were able to get into PEPE early, a lot of money has been made. But as always, it will cause a mainstream stampede into the coin, where most of them will lose money. Another distraction that is simply noise in the space, and is taking attention away from Bitcoin and Ethereum.
Meme coins aren’t the only hype cycle that is once again rhyming again. Some of the largest gains last cycle were made from alt-Layer 1 smart contract blockchains. Chains that were bought up and shilled by VC investors; claiming that they put Bitcoin and Ethereum to shame. That these new projects were the next big thing. Some of the biggest new entrants last cycle were Solana, Avalanche, Luna, Near, Fantom and the list goes on.
However late last year we saw the launch of Aptos, and now we are seeing Sui be introduced as well. We will once again hear how they will take over the market, and finally be the “Ethereum killer.”
Always remember that history rhymes in crypto. These are simply the next wave of investments that VCs are hoping to use you as exit liquidity to make them even richer. Be smart, and put your money into real projects in the space.
How about you? What do you think will repeat this crypto cycle?
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As always, thank you for reading!
