It’s been a tough year for cryptocurrency. The major coins like Bitcoin and Ethereum are down more than 50% from their all-time highs in November 2021. Sure, there have been some small pickups in recent weeks, but the crypto market as a whole is largely treading water while looking for direction. Some experts say crypto prices could fall even further before any sustained recovery.
While this may be disappointing to many who saw crypto as an investment that would deliver long-term wealth and opportunity, it doesn’t mean things won’t change at all. It just means we’re still living through one of the biggest corrections in history. In fact, these bear markets might actually help usher in major innovations in cryptography or governance models. As it turns out, low price volatility can breed innovation—and lower valuations encourage riskier behaviors.
Here’s how I think we’ll get out of this latest slump…
1) We’re About to See Crypto Governance Systems Really Take Shape
As people start getting bored with crypto trading, they will become increasingly focused on its governance structure. This was obvious in the initial coin offering (ICO) boom, which attracted both speculators and serious blockchain investors looking to support projects with real use cases.
2) Scams Will Decrease
There were plenty of scams, but also a lot of genuine decentralized applications launching new cryptocurrencies backed by actual developers instead of venture capitalists and scammers trying to make a quick buck. These companies are now able to raise funds much more efficiently thanks to platforms like Stellar Lumens, Binance Chain, BOScoin, Wanchain, Zilliqa, 0x, Cardstack, and others.
3) Fundraising will change
The crypto world is moving toward more efficient fundraising methods such as security tokens, STOs, and tokenized securities. This trend could continue despite current economic restrictions because most traditional finance institutions are afraid of missing the boat when crypto gets a second wind.
The Future is Bright for Crypto!
It’s easy to forget about the long-term growth potential when prices tank every time you turn around. But remember: There was never any guarantee that this would be a smooth ride forever. So while the next few months may look grim, don’t despair.
