For crypto to “win” it must solve its own problems for COINBASE:XTZUSD by RyanTanaka

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The idea of ​​“smart investing” comes with the assumption that the market rewards reason and punishes irrationality over the long term. What they don’t tell you, however, is that the opposite is often true in the short term. If you want to make money, more often than not, you have to have the discipline to act unlike most do.

It’s been almost a decade since I first started digging into this stuff, but the above still seems true. The crypto has been practically stable for about 6 months now, but has remained practically stable. The last bull run had a similar pattern where it made new highs (BTC $4000 $16000, ETH $100 $1400) and then fell back to where it was before. (And stayed that way for a few years.)

Projects that worked diligently on their product even after the drop ended up reaping the rewards of the 2020 rally and did very well. Rivalries between Bitcoin, Ethereum, Dogecoin, Tezos, Cardano, Ripple, EOS, etc. already existed in 2018, but the arguments were mostly about technical differences and seemed less personal. This time around, many of the arguments you see on social media have more personal, political and ideological slants – a sign of the traditional money irrationality that has arrived, perhaps.

For what it’s worth, despite the FTX scandals and very negative media coverage of the crypto in recent weeks, the price hasn’t really moved much. Chances are those who were going to leave have already left and we are left with only those who are here for the long haul. While talking heads lament their losses in public, builders will continue to build, pushing the industry to where it needs to be for the future ahead. That’s hope, anyway.

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Long-term strategies only work if you’re willing to wait at least one market cycle because the system needs time to work on its own – and I haven’t seen any exceptions to this rule so far . But after already going through 3 crypto winters, I’m starting to wonder what’s really taking us so long to get to where we need to be – big ideas in crypto (transparency, accountability, partnership automation) can already be done with ledgers distributed, but the industry has been slow to adapt to it, to say the least. The problem is that we don’t really use blockchain technologies the way we should: for example, when you watch all the people in the media and social media talk about how much money they make, how do we know if what are saying is actually true? We have no idea – we took them at their word, and now we find out that many of them were just trying to lie and fight their way to the top. What happened to “verify, don’t trust”?

Having become too accustomed to low interest rates, fiat markets are poised for big trouble over the next few years, if not more. Trends say that when an economic system is in disarray, crypto adoption tends to increase. But for that to happen, the crypto community needs to convince the world that it’s safer to park your money in coins rather than fiat – which, if we’re being honest – we’re not there yet.

But unlike fiat institutions that struggle with legacy and protectionist frameworks, crypto has the tools to mend itself if it wanted to – the benefit of being a new industry that has the energy and flexibility to grow. adapt. The current irony is that crypto is suffering from the very problems it is about to solve – but these are largely remnants of bad habits from Web2 and traditional fiat. You could probably say that SBF shares were a product of the fiat world, not crypto – there’s a reason there are those inside trying to protect it now. But FTX is also a preview, of sorts, of what’s to come in fiat worlds as we head further into the recession – what they do at SBF might be them next – which is why they have l feel like they have to protect him from all charges, despite the egregiousness of his misdeeds.

In a way, SBF did the industry a favor by eliminating skeletons sooner rather than later. For fiat, the tide is just beginning to pull. Crypto will set the new standards for transparency, accountability, and decentralized governance – or it will fall back into old habits and go to 0. (There’s no reason for people to use crypto except that Web2 .1 – incumbents already covered this.) It’s going to be an interesting ride over the next few years, anyway.

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