Tips for Surviving the Period of Headwinds to Crypto Assets

Tips for Surviving the Period of Headwinds to Crypto Assets [opinion]

Tips for surviving – Public opinion about crypto assets turned 180 degrees as expected, following a drop of more than 50% in major crypto assets (cryptocurrencies) and the collapse of a large experimental project. It happens every few years.

The crypto asset price bubble attracts a new bunch of speculators, many of whom are hurt by making bad bets on technologies they don’t fully understand. Then public opinion sways in the opposite direction.

From the days when “Davey Day Trader,” a live streamer of investments, talks about Dogecoin, it’s time for Massachusetts surgeons to lose all their fortune at LUNA.

It’s true that good tech stocks such as Meta and Netflix have fallen as much as Bitcoin ( BTC ) over the past year, but let’s put that aside for now.

Raging criticism

There is a backlash against crypto assets, which is manifested in a very familiar way. Jackson Palmer, who made Dogecoin a joke, made a critical claim to the crypto-asset industry.

Molly White, an anti-cryptocurrency blog, has been featured in The Washington Post. Crypto Critic’s Corner, a podcast skeptical of crypto assets, suddenly joined the ranks of the world’s most popular tech-related podcasts.

These generally constructive and harsh criticisms are wonderful. The presence of sound, informed and sound criticism is a plus, not a minus, for the serious emerging tech sector. But the more general criticisms will also produce alarming, stupid behavior, including evasion and misunderstandings.

Chelsea Manning, who leaked confidential U.S. military documents in a whistleblower, gave a classic example in a recently released interview. He strangely avoided the word “crypto assets” in explaining his efforts in a project called Nym.

Manning called himself a “cryptic skeptic” and tried to explain that his project, which claims to use blockchain to ensure privacy, is not part of the crypto industry.

But Nym has a token, which is an incentive for those who maintain the network … isn’t it a crypto asset! Chelsea Manning is helping to launch crypto assets. Where is the problem?

Manning is a hero who protects privacy and democracy, and for some reason we all should be respected. It’s heartbreaking for such a person to feel that he needs to play a role as a crypto skeptic while receiving a reward from a crypto startup.

The ideas that underpin Nym also seem suspicious. Unfortunately, blockchain may not be a good starting point if it is trying to protect its citizens from government surveillance.

The shame of crypto assets from prominent privacy advocates promoting the dubious token project means that crypto assets are in the worst of circumstances.

Easy-to-understand villain

Criticism from selfish skeptics will not stop immediately. Part of the reason is that the market turmoil has an obvious villain and scapegoat, Do Kwon, the creator of Terra, who collapsed due to the collapse of LUNA and UST.

What I say is a villain and a scapegoat is not remembered as the person who caused the widespread market crash, but any failure or token that he and his efforts made the crash possible. It’s memorable because it embodies the negative aspects of the industry, such as those who rushed to buy, random people, and scammers.

In the past, it may have been Mt. Gox’s former CEO Mark Karpeles or Quadriga CX founder Gerald Cotten who took on such a role. do not have.

But this time around, after crypto assets have never been known to the general public, it’s Do Kwon. He will be featured everywhere in the coming months.

The fact that ego, the dead of gold, recklessness, and the incarnation of stupidity symbolize the entire “cryptographic asset” should be obvious damage to the industry. We should be angry with him in addition to everything else he has done.

It will be a tough time. No one knows how strict and how long it will last. It’s a familiar situation for many of us. There are minor differences, but the retrograde cycle of crypto assets has already been repeated four or five times.

Each time, crypto assets have been the subject of criticism from the source of the month’s number one enthusiasm, and similar behavior has emerged. But thankfully, when it’s backlit, there are opportunities.

“Blockchain, not crypto assets”

Companies will continue to enjoy sucking money from investors. For example, consider Andreessen Horowitz’s new $ 4.5 billion crypto asset investment fund. Public opinion on crypto assets is the worst, but it may still be well funded.

As people who want to suck sweet honey from crypto assets try to show modest activities related to crypto assets, many painful excuses like Mr. Manning will be heard.

Manning’s claim is very close to the industry’s familiar evasion, “blockchain, not crypto assets.” This is a concept that doesn’t make sense. Tokens with monetary value are an integral part of the decentralized public blockchain, at least for now.

However, the phrase “blockchain, not crypto assets” suggests a desire to take advantage of blockchain technology without financial volatility.

The “blockchain, not crypto assets” slogan has been particularly appealing to the blockchain sector within large corporations in the past market downturn. It’s no coincidence that one way to operate on the empty premise of an “enterprise blockchain” is to use a well-controlled private network.

It may have had limited potential in the long run, but it is far from the innovative power of public blockchain. It’s just a trap of words to fool those who are influenced by the shift in public opinion and don’t understand crypto assets at all.

Survive the winter

Ignoring these timid tricks is the first step in getting through the winter of crypto assets. Another recommendation is to try to understand what happened.

Why did Terra go bankrupt? Why is Solana (SOL) down 80%, but Ether ( ETH ) down only 58%? There are good reasons for these, and if you learn them now, you’ll be better prepared when public opinion about crypto assets shifts in the opposite direction and the next group of impulsive buyers emerges. ..

Another simple but painful piece of advice is “stop day trading.” The downtrend is still going on, and no one knows where the market will bottom out. Secure the capital you have and move your focus elsewhere. Specifically, you may be able to join the community, actively use the product, hone your skills, and develop something.

Dade trading is a losing battle that is simply made a good duck even during a boom. But in a bear market, it really should be left to the pros. There may have been times when I was laughed at as a gambling addict, but I can’t laugh if I’m really missing a sentence.

Spending this time on learning is not just a minimum of self-esteem, but a path to true success. Even novice crypto speculators have learned a lot about the field of crypto assets, and at this point in the growth of the industry, such knowledge is also valuable in surviving the slump in crypto assets. Industry celebrities will also be much more accessible in the future, which could lay the foundation for future careers.

But the most important advice to survive the headwinds for crypto assets is very simple. Don’t give up and stay in the industry. The fiercely cyclical nature of crypto assets is the most annoying and at the same time an opportunity. It provides a new entrance for those who are truly devoted, while regularly expelling superficial speculators.

Whether you’re just getting a job at a crypto company and wondering if you want to return to your previous job, Goldman Sachs, or if you’re an ambitious newcomer looking for an opportunity, the biggest mistake is from the ball. Keep an eye on it. I don’t know which way to bounce.