Some hard truths and why "Crypto Winter" could be an amazing opportunity

Before I get to the part where I administrate massive amounts of hopium to everybody, first, we have to acknowledge some hard truths.

The truth is that most projects in the crypto space right now are absolutely useless. They are useless in real world terms… for now. No products are being created, no viable alternatives have been adopted, no revenues are being generated. (although one could argue that that's the point of decentralisation)

You know, it’s easy to get caught up in our bubble. We research and talk consistently about terms such as “interoperability”, smart-contracts, liquidity pools, yield farming, staking, NFTs, Metaverse etc etc. But, when you zoom out for a second, none of these are important when there is no use for Cryptocurrencies and Digital Assets to begin with.

Can you convince someone who has no idea about how a blockchain works, or what Bitcoin is, to invest in a small market cap project that focuses on providing oracles to smart contracts? Hell no.

I am not going to get into the whole macroeconomic factors that are affecting global markets right now but: In times of downward economic trends such as now, most financial advisors would tell you to think like a “Small Business owner”. A small business owner, theoretically, does not have shareholders over his shoulders all day guiding the decisions of the business to maximise profit. All he cares about is to show up to work, sell products/services and make money. This means that, during times like these, it’s safer to invest in businesses that make money by selling stuff. And crypto projects right now, sell absolutely nothing.

So, crypto winter huh? What now?

Crypto winter is actually a great thing as it does two things:

1. It eliminates a lot of the unnecessary, wasteful, shitty projects off the space, as well as most scams and rug pulls. During a bull run, everyone is quickly rushing to make money, either by FOMOing in or by figuring schemes to make money off other people. During a bull market, social media are filled with scams, memecoins, shitcoins, craze. It’s all noise. Of course pictures of apes selling for millions wouldn’t be sustainable. But perhaps this was required to finally discover an actual use case for NFTs. During a bear market, the teams and developers of solid projects work silently to improve the technology, analyse issues and future opportunities. This is necessary if we want the space to evolve, provide real world use and wide adoption.

2. Provides the best chance for smart investors to accumulate until the next bullrun, whenever that is. There are those who bought BTC in November at $69k and those who bought in 2020 at $8k. Those who were accumulating before 2020, made a fortune during the 2021 bull runs. Those who bought the top are either left “holding the bag” or just sold at a loss and left. But guess what, those who get in now, no matter how low the markets drop, will eventually reap the rewards of the next bull market. (I am by no means telling you to buy in now, everyone evaluates risk in different metrics.)

It is important to know that markets work in cycles. Those who make money are those who are able to see beyond today and tomorrow. This has always been the case, whether we talk about stocks or real estate or crypto. Those who make money are those who accumulate during quiet times, when prices are dropping, when weak businesses/companies start failing.

And always remember, it is easier to hold when you invest only what you can afford to lose. Please prioritize your economic situation, your needs, your family etc. Have a long term outlook on things. Times are tough.

I consider myself a strong believer in Bitcoin and cryptocurrencies in general, but we must also remain open-minded and be able to see the flaws in the current market. Once all the junk is cleared out, the coast will be beautiful.