For those of us who are most passionate about this market, cryptocurrency is not only our largest investment but a way of life. We wake up each day excited to check prices, the latest news, developments and participate in the ecosystem. During bull cycles, we feel we are at the top of the world. However, during bear cycles, we feel like we are in the deepest valley. We are all hoping that our investments in this market will be the tool that unlocks financial freedom in our lives. Allowing us to finally have full control over our own lives and pursue our real interests. This all sounds great, but what we don’t realize is that in many cases, we are the biggest obstacle in making this dream become a reality.
At the time of this article, the price of Bitcoin and Ethereum are about $86,000 and $2,200 respectively. While that may seem like a lot of money to most people, the truth is that their prices should be much higher. And we have only ourselves to blame for this. We all dream of moon prices, but we are our own biggest enemy when it comes to crypto.
We have all become distracted by the “noise” in the crypto ecosystem.
Some investors put money in crypto for the long term. Buying high-quality projects that have a real purpose and goal. While I personally like to stick to Bitcoin and Ethereum, there are several other great projects out there as well. However, there are endless meme coins and new tokens being minted daily with people hoping to become rich quickly. The split between real investors and get-rich-quick investors has always been present in most financial sectors. But since the crypto market remains largely unregulated, this results in it happening much more often here. With tokens such as Shiba Inu, Floki, and several others. They are all taking capital away from the top-tier projects. During the last cycle, Bitcoin reached a high of $69k. How high could it have gone if the capital from these low-tier projects went into it instead?
The same can be said about NFTs. I am a believer in the great potential that NFTs will have in the future. They could be a game-changer for the world. With that said, I freely admit that I’m not really a fan of the current incarnation of them and own very few. As years go by, they will continue to evolve and become even better products.
While meme coins stole a lot of the attention away from the “real” projects in crypto over the last few years. Arguably, NFTs took even more attention away from them. Crypto Punks, BYAC, and the list goes on; they were the darling of the industry. Celebrities everywhere began using them for their profile pictures. The biggest NFTs were often selling for millions of dollars, with one even selling as high as $69 million. While the biggest NFT projects will likely survive and thrive in the future. With that said, 99% of projects will become worthless. People will be stuck holding their NFT bags that they bought hoping would turn into the next thing. With them being NFTs, they are much less liquid than traditional crypto, which means they are more difficult to sell. A large percentage of the capital put into these projects will simply disappear. Once again, money that could have propelled this market to new highs.
We can also help crypto become better by having less greed. It will sound weird to hear since greed is also one of this industry’s biggest strengths. Last year was one of the worst in the history of crypto, and we need to learn from this if we want the industry to become stronger in the future. Using leverage, being unresponsible with loans, and constantly searching for yield were the root cause of countless insolvencies in the market. All of this sent the market into such a downturn that it had many wondering if the crypto market would ever be able to recover from this.
If we want this industry to truly become stronger and succeed in the future, there are things that each of us can do. By investing in real projects, avoiding junk NFTs, and by keeping our greed in check. Those small changes would have a profound effect on not only prices but development in this market too. Some really talented developers are devoting their time to those questionable projects, instead of contributing to something real. The US government seems to have turned its attacks against the crypto market into high gear and is throwing everything it can at us. Yet, people in the crypto market keep tripping over our own hurdles. If we want this market to succeed we must stand up together, and fix our own shortcomings. The future for crypto has incredible potential, we just need to be careful from being distracted from the real goal.
How about you? How can we make crypto better?
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