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We have spent 13 years experimenting with the major cryptocurrency. And for many, it is a mysterious brew of funny money, speculative assets, and a playground for scammers. Indeed, the cryptocurrency is at a critical inflection point on its path to maturity.
The path forward requires bridging the huge gap between the promise of blockchain to improve people’s lives and the still-short-lived reality of today. This gap represents one of the biggest opportunities for innovation in the next few years for builders — and for the investors who support them.
Bankruptcies, forced liquidations, illegal activity and investor losses make headlines. Like the dotcom bubble of the 2000s, the case of encryption Today says less about the technology itself than the speculation surrounding it.
Sure enough, a lot of people have spent a lot of money buying too many new cryptocurrencies that were never supposed to exist. This created a huge artificial demand that drove even the most speculative cryptocurrency.
As the saying goes, it’s all fun and games – until someone stumbles upon the corpse.
The corpse here was a crane. A lot of the buying was made by speculators who had never lived in a bear market with other people’s money – money they had no chance of repaying. Buyers have disappeared. The lenders went into survival mode. Margin calls were sent to voicemail and borrowers were forced to sell speculative assets in a market without buyers.
Nothing about the Great Crypto Crash of 2022 that wiped out $2 trillion in “value” should come as no surprise, as we’ve seen this before. David Kleinbard mentioned in a report, “I call it the $1.755 trillion study of investing in dot.com.” CNN Money As the year 2000 drew to a close. “It’s hard to think of a publicly traded Internet company that hasn’t fallen at least 75 percent from its 52-week high and hasn’t cut its expenses or laid off workers.”
Cause of existence
“The carnage in the cryptocurrency market will not stop as token prices drop, comp layoffs in waves, and some of the industry’s most iconic names are shining through,” CNBC mentioned Last month. “The chaos has terrified investors, wiping out more than $2 trillion in value in a matter of months.”
In order to capture the interest in cryptocurrency that we saw after the dotcom bubble burst, we need to jump from the Ferris wheel of speculation to the industry’s target trajectory. Just like humans are more satisfied when they find a target, the cryptocurrency industry needs to find a reason for its existence, just like any other technology before it.
encoder and web 3 It represents the latest advance in technology that spans decades. We needed the computer chip and mainframe to get to the desktop computers, and then to the laptop and smartphone. The Internet was necessary before AOL made it easy and accessible to the masses. Without all of the above, there are no blockchain, cryptocurrencies, and NFTs. Moments of change in the world of technology are evolution – and we are on the cusp of cryptocurrencies changing everything.
However, in order to change anything, our goal should not be to make a quick buck on the back of leveraged consumers and fund managers. It should be based on utility and that benefit should be driven by the technology itself and not be possible without the technology.
We’ve seen this moment before. For the internet to catch on, we needed an easy interface (thank you, AOL) and helpful services (thank you, Amazon, USATODAY.com and other early internet pioneers). We had everything we needed for businesses to harness computing but didn’t have a computer in every office (thank you, IBM, apple and HP) and software to make it useful (thank you Microsoft and Adobe). We are now in a similar critical moment for cryptocurrency and blockchain. We need AOL, Amazon, IBM, HP, Apple, Adobe, Microsoft of this new technology.
What’s most exciting to me is that many of these companies are just getting started during this crypto crash.
Mike LaZero is the managing director and co-founder of Velvet Sea Ventures.
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