How to Start Making Bitcoin Great Again After the Crash in the Crypto Market?
It was a hard year for virtual currencies and projects in the space. After a very good 2017, 2018 received the market with a very strong drop in the prices of most of the digital assets. Dovey Wan, founding partner of Primitive Ventures wrote an article in which she discusses how is possible to start building the crypto market once again.
Several investors that entered the space at the beginning of the current year or the end of the last one have been the most affected by this bear trend. However, Dovey says that there are two facets related to the blockchain industry, one is the investment side and the other the development side.
She says that investors and developers are disconnected between each other since there was a lot of hype in the industry influencing prices. This led to an asymmetry between prices and development. In the future, the market could continue the bear trend in which it currently is, but there are interesting things that are being improved on the technology front.
After talking with several influential leaders in the space, Dovey believes that 2019 will be the year in which people’s violent delights will reach violent ends.
She has also been talking about how miners are starting to be affected by this sell-off experienced by the price of Bitcoin (BTC). Bitcoin’s hash rate has reached an all-time high in August and since that moment it has plummeted 50%.
As Bitcoin’s price fell, mining activities with the old difficulty were not profitable anymore, this is why several miners decided to sell their hardware and leave the market. During 2017 and part of 2018, the number of miners increased almost exponentially. Most of the miners believed that Bitcoin was going to be worth much more in the future, allowing investors to be profitable. However, this did not happen, and now they are shutting down.
She went on saying that although the market trend is currently brutal, this provides the necessary conditionto create an opportunity for extraordinary returns. Those that produce a truly valuable work will clearly be rewarded in the future.
“It may be the worst of times for the markets, but is the best of times for real development,” she mentioned in the article.
Between the last few months of 2017 and the first months of 2018, the number of projects raising millions of dollars skyrocketed. Initial Coin Offerings (ICOs) were everywhere and promised to build incredible products and services to revolutionize the world. However, this did not happen in most of the cases.
As most of them failed, those who are currently investing in the market are clearly committed with the growth of the space. Blockchain products could gain organic adoption right now than during hype. Users will not be confused about whether the adoption rates of a specific product is related to hype or real growth.
Dovey mentions that they are seeing different projects that attracted communities without even offering an opportunity to invest in a pre-sale or pre-mine. Other projects such as Monero (XMR) and Zcash (ZEC) are also working on different implementations.
She ends the article by saying that in 2019 crypto is set to ‘radically upend the way we transact, privacy, ownership and many more things we can’t anticipate.’ However, she says that in the near term market conditions remain brutal.
It is now important to pay attention to development rather than to price. This would help the crypto space grow, reduce brutality and help the market grow in a sustainable way.