It’s time to take advantage of the current crypto market

[ad_1]

Opinions expressed by Entrepreneur contributors are their own.

This past year of events and serious lack of financial rectitude would have any investor, retail or institutional, struggling with their internal monologues about long-term market confidence. 2022 has seen some of the crypto industry’s most lucrative empires crumble, unicorns disappear, and a resurgence of the worst media rhetoric of 2008.

Having more monetary value than the GDP of Costa Rica, in the last eleven months alone we have seen the collapse of the stablecoin Terra, the bankruptcy of the crypto hedge fund Three Arrows Capital and the crypto lender Celsius, as well as to the most prolific year for network hacks, collectively amounting to an estimated loss of nearly $70 billion so far. This all happened before the unprecedented collapse of FTX crypto exchange by Sam Bankman-Fried and his counterpart at Alameda Research. The result of this series of blows to the industry is, of course, a myopic view of the effectiveness of Web3.

Related: Bear With Me: 3 Ways To Capitalize During The Crypto Winter

The impact

As the word recession begins to permeate conversations around the world and as we potentially enter the new year amidst a declining market, a long-term strategic perspective is crucial to keeping all of this Web3 afloat and far from the expression “in vain”. ‘

Bringing a thread of comfort to the situation, our lessons learned from the bursting of the dot-com bubble in the early 2000s, the subsequent stabilization of the technology sector and the rise of the giants we know today demonstrate that the promising is maintained in the long term. Although the next chapter may be an impossible challenge for most, it is still worth pursuing. After all, bull markets breed rich people; bear markets beget the rich.

Related: Are We in a Recession? Here’s what economists say

The severity of the 2008 financial crisis knows few bounds. The event was arguably the most impactful of our lifetimes, ravaging the entire global economy. Nearly 9 million people have lost their jobs and nearly 10 million people have lost their homes due to foreclosure. After four years, more than 46.5 million Americans were living in poverty. Countless people have defaulted on car loans, leaving them without a car and with incredibly low credit scores. These poor credit scores led to the inability to access credit, which led to financial, social and practical exclusion.

The consequences of this recession have continued to proliferate many lives. We cannot and should not draw parallels between this event and what is happening with cryptocurrencies and technology. We don’t see the “Lehman moment” in crypto as a media-driven narrative. Markets in recession do not denote an economy in recession. What we are seeing is a more substantial and volatile crypto winter than the previous one. We also see a decline in equity investment, which can happen before and after an economic recession is declared, but more importantly, we see an opportunity to understand the consequences of our current frameworks and the value proposition that remains.

Related: Why the Bear Market Is the Best Thing to Happen to Web3 and Cryptocurrency

Crypto and financial parity

I am not oblivious to the financial losses suffered over the past few months, losses of considerable magnitude from which many will not recover. I have nothing but empathy for investors who have been disappointed by a nascent system lacking in effective regulation. However, this declining market has a positive side for the vast majority of the American population who have not yet invested in digital assets.

For those who don’t physically recoil at the thought of pumping more money into crypto and Web3, the downward trajectory of market price allows many people to wholesale buy the dip and accumulate a wallet of assets whose price could have been exhausted before.

As the racial wealth gap continues to widen in the United States and minority communities seek to bet on crypto to generate alternative income, declining markets, in some ways, present an opportunity. Warren Buffet’s famous quote, “Be afraid when others are greedy and greedy when others are afraid” comes to mind.

Successful startups, and even some unicorns, are born during bear markets by responding to new demands created by economic circumstances. Out of the last crypto winter came the crypto unicorns Uniswap and OpenSea. Based on previous business cycles, we know that with robust use cases will again come market confidence, institutional support, and ultimately mass adoption. Historically, bear markets are shorter than bull markets, and so if you can withstand the volatility long enough to stay invested in the market, it can separate you from the rest.

Related: ‘We Are The First Group To Lose’: Black Americans Hit Hard By Crypto Crash

Black Americans hold less than 3% of the overall wealth in the United States despite representing 16% of the population. Instead of trying to wrestle with the systemic barriers of the traditional financial system that have been in place for centuries, investing in digital assets offers us a chance to chart our own path, with market access at our fingertips at a threshold. minimum investment of $5. or $10. The biggest challenge we still face in this regard is education. Ariel-Schwab’s 2022 Black Investor Survey found that 29% of Black Americans who invested in something they didn’t fully understand did so because it seemed like a “sure deal.” That’s how you lose money, not how you make it. As stocks and coins continue to fall, take the time to read, watch and listen.

Now is the time to look beyond traditional wealth generation systems to reduce wealth disparities and level the playing field in the United States and beyond. Likely, the next unicorn, unparalleled digital asset or exclusive NFT collection is being built for public trading during this bear market. Imagine missing the opportunity to invest in it before the next guaranteed bull run.

TLDR: Investing in crypto is chess, not checkers. And guess what? It’s your move.

[ad_2]