Sirwin
Sirwin

Here's Why I Remain Optimistic Of Crypto Despite The Bear Market

By donniezeb | my-crypto-opinions | 29 Sep 2022


At the time of this article’s publication, we have been in a bear market for awhile. A lot of positive expectations have been crushed, and now everybody has been skeptical about the future of cryptocurrencies. It’s normal to feel down or skeptical when things don’t seem to get better for a prolonged period of time. 

And for the skeptics, it’s easy for you to blame the crypto bear market on the industry itself. You keep saying that crypto has no use case and it’s only a fad. Some of the criticisms might be legitimate, however, it’s also super important to note that the current bear market is not exclusively about cryptocurrencies. The stock markets (worldwide) have been crushed too. 

And should I remind you that even many fiat currencies have been under immense pressure right now? Does it mean all these fiat currencies and stocks have no use case? Of course not. The macro environment is pretty bad at the moment, and higher risk assets (such as cryptocurrencies) have been hit harder.

Just because cryptocurrency prices are going lower following the stock market movement and some fiat currencies, it doesn’t mean they have no use.

In fact, I honestly believe it’s the other way around. I believe the tight correlation between the cryptocurrency market and stock market mean only one thing. When the stock market recovers, the crypto market should follow. 

But beyond the technical and correlation analysis, I would like to show you fundamental reasons why I remain optimistic of crypto’s future in the long term despite the bloody market. And why you should too.

Reason #1 - The Crypto Industry Opens Up Worldwide Opportunities

b90629bc1cebc2212cc0e4c2892ea417d76f3b7cc00b8699ea4eba62cb36c335.png

From my personal experience living and working from different countries, I can tell you one thing. The crypto industry is among the “leaders” when it comes to worldwide opportunities. 

Take a look at remote job opportunities, for example. Many other tech industries are very restrictive when it comes to giving new job offers. They usually play favorites and don’t allow you to work from outside their country.

In the meantime, many cryptocurrency startups allow you to work from anywhere in the world. Sure, not everybody adopts this approach, and sometimes the pay is questionable, but the amount of crypto startups that allow you to work from different countries still surpasses most other industries. And yes, even in the bear market.

This is consistent with the fact that crypto is supposed to be borderless and cater to a worldwide audience (the decentralization spirit thing). Many intelligent and hardworking people from third world countries can enjoy higher salaries and incentives thanks to the democratization of the workplace, and the crypto industry is on the frontline of this.

Reason #2 - The Importance Of Ownership

95107458fe70c4f9a4f8cdb73ab1e2577679803a3f6cc79ac59fe8c02e5ade6d.jpg

This might sound a bit cliche for many people but in my opinion there’s one thing that makes the crypto industry stand out compared to others. The concept of decentralization has made it possible for average people to have a sense of ownership. In the battle between centralized network vs. decentralized, there are more benefits to decentralization rather than the other way around.

Look at crypto miners and validators, for example. They basically own the copy of the ledger, and they play super important roles in terms of network support and transaction verification. In fact, the more validators we have in one same blockchain, the more decentralized it becomes.

This is not possible in the centralized world like standard tech startups, where everything always has very few shareholders, and you just do the job or activities they want you to do, and nothing else. The idea of decentralization matters to me and many other crypto proponents, because it allows the average peasant (like myself) to feel more important rather than just do the job and get paid.

If the idea and vision of web3 become much more mainstream than what it is today, it will finally make us (the web users) feel like at least we own something. This is what the world wide web is supposed to be, the important builders and users should have a say and should have a sense of ownership.

Reason #3 - The Blockchain Market Keeps Growing In Every Market Cycle

cfdd43a1cc1d08f779d84c6dbf6e65e3974691b187453d7a5eefe01e2a87032e.png

The size of the blockchain market keeps growing in every market cycle. Fortune Business Insight has claimed that the blockchain market size is expected to rise from $7.18 billion in 2022 to $163.83 billion by 2029 at a CAGR of 56.3% during the forecast period. Nasdaq also claimed that the smart contracts industry will potentially disrupt the traditional industry despite the current market bloodbath.

And if you notice, the previous market cycles have shown us the rapid growth in this industry. In the 2017 bull market, everything was all hype and good-looking white papers. In the 2021 bull market, we have seen the evolution of the DeFi industry and web3 projects. It’s very different from more traditional tech spaces where many of the things don’t really change in just a few years' time.

I strongly believe the blockchain industry will evolve one more time and the next big trends will be very different from 2021’s bull market. And this is good because many skeptics often claim that cryptocurrencies don’t solve anything as of now. 

The future changes will finally show them that we can have much wider use cases rather than just simple stake and earn interests through yield farming process. In other words, we need the blockchain industry to evolve (and we will get there), before we can go more mainstream with the use cases.

Reason #4- Having A Trustless System Is Much More Important Than What People Think

e293a8319afd722f66232ff1c09b9755c6a266ae464a380dc0f72cf805f4e903.jpg

This is perhaps the most overlooked reason of all time. In the crypto industry, we have what we call a “trustless” system. In the smart contract mechanism, once the developer deploys the smart contract to the blockchain, you don’t have to trust the developer anymore, you simply have to trust and verify the codes.

This is actually a very good system, because it allows you to be able to work with a lot of different counterparties. For example, if you have a decentralized team where everybody works from different remote locations, it’s great to have a multisig solution to control the team funds. This is much more balanced rather than having to fully trust your business partners on everything.

The trustless mechanism allows people to trust the system more than the faces behind the system. Just look at how DeFi protocols work. Even when their frontend goes down, you can still access and interact with their codes through the public functions on blockchain explorer websites. Yes, there are always a lot of “tricks” that the DeFi founders can do, but at least, it mitigates some potential risks (such as if the server goes down, etc.)

Final Thoughts

All of the fundamental reasons above are the main reasons why I remain optimistic of crypto despite the current bear market. You may also add its tight correlation to the U.S. stock market as one of my main reasons, and you get the right combination of why the cryptocurrency industry should rise up again when the macro environment gets better. Just like every other person out there, I don’t know when we will get into market bottom, but at least I know that it will eventually bounce back.

How do you rate this article?

14


donniezeb
donniezeb

Hello, I'm a crypto enthusiast. I believe in decentralization and blockchain :)


my-crypto-opinions
my-crypto-opinions

opinion-piece

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.