The last few years have been a difficult time to be a Bitcoiner investor. After reaching a new all-time high of $69k in November 2021, we went through two years of pain where prices seemed to do nothing but go down. But, this was nothing new for Bitcoiners. We have gone through multiple bear markets before.
The real pain came from the greed and corrupt players in the market. People and companies were using extreme leverage, lending funds they didn’t have, offering interest rates that weren’t sustainable, and even outright frauds. Eventually, it all culminated in what has later been called the summer of insolvencies. After Luna and UST depegged and went nearly to zero, it caused a cascade of dominoes to fall that resulted in many of the biggest cryptocurrency companies becoming insolvent. Companies such as BlockFi, Celsius, Voyager, Vauld, Hodlnaut, Haru Invest, and much more. All capped off with FTX’s fraud being discovered.
It seemed that with each day that passed, we would wake up to new FUD. This caused extreme damage to the reputation of the crypto market and even threatened its future. Experts were declaring that irreparable damage had been dealt to the cryptocurrency industry. That the death blow had finally been delivered to Bitcoin and crypto.
There is no denying that this was a painful time for Bitcoiners. We all had our sights set on Bitcoin reaching a price of $100k, and even beyond that. But the corruption in the market clipped Bitcoin’s wings just as it was beginning to fly. The last cycle will always be remembered as the cycle of self-inflicted wounds. A cycle of what could have or should have been.
But hindsight is everything. Now we know just how much garbage and corruption there was in the Bitcoin market. Some of the biggest names in crypto Zsu Shu, Kyle Davies, Alex Mashinsky, and SBF, all turned out to be weaknesses to the industry, rather than the influential people that we thought they were.
There is an alternate reality where UST and Luna didn’t become depegged, and there wasn’t a summer of insolvencies. Prices in the market continued to soar upward. However, the problem and garbage in the market was still there, but just hiding. In fact, we are lucky that all of these frauds were discovered last year. If their schemes, lies, and frauds had continued until the crypto market became much larger. The damage that could have been dealt would have been even worse. At that point, it truly could have been a death blow to the Bitcoin and crypto industry.
When you have a bandaid, sometimes it is less painful to rip it off faster, instead of pulling it off slowly. The pain, in the beginning, is larger, but it is best for the long term. That is exactly what happened last year in the cryptocurrency market. All of the garbage needed to be flushed out of the industry, so that we could grow stronger and larger. Just recently Alex Mashinsky and SBF have gone to prison. It is a sign that we are finally closing the chapter on the last cycle, and are now ready to move on to the next chapter in Bitcoin.
Bitcoin is incredibly resilient and has come back stronger each time. The future for Bitcoin is very bright.
How about you? Do you think the garbage in the Bitcoin market needed to be flushed away
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As always, thank you for reading!
