Since the end of 2021, crypto believers have been given false hope over and over again, only to be crushed repeatedly. Despite the recurring blows, a core faction have remained steadfast, always with the end-goal of mass adoption in mind.
Taking into consideration the somber reality we find ourselves in, one must ask himself the question...
Are we suffering from tunnel vision in echo chambers? Have we convinced ourselves that crypto is "the future of money", or that a tokenized future is imminent, when in reality it's all just a pipe dream?
In this article, we will cover four reasons why you should keep holding on, despite the bleak circumstances.
1. TradFi Keeps Getting Worse
Many of us got into Bitcoin because we recognized the flaws of the traditional financial system. Namely, that it was held on life support via artificially low interest rates and quantitative easing since the financial crisis of '08.
After the plandemic of 2020, the debts nearly doubled. Interest rates have been raised to 5% to suppress inflation and prevent the dollar from crashing too quickly. With the national debt surpassing $37 trillion, and interest payments skyrocketing, the situation is now critical.
Crypto is a more transparent and resilient form of money than fiat, and it can also stimulate economic activity. Similar to how the automobile slowly replaced horse-and-buggy over time, crypto could also gradually replace fiat.
2. Naysayers Keep Coming Around
You have probably noticed a trend of people who were dismissive of crypto at first, only to eventually see its benefits and then become believers.
Trump, for example, was very anti-crypto just a few years ago, but has now fully embraced it.
Institutions who were calling Bitcoin an "index of money laundering" years ago have since pulled a 180, embracing both both Bitcoin and "tokenization".
We have also seen government adoption of crypto in places like El Salvador, Central African Republic, and various American states. Moreover, countries that once banned crypto have started to accept its inevitability.
3. Fundamentals Are Strong
If you've been keeping an eye on what's going on behind-the-scenes (via X or Discord, for example), you should have noticed that the fundamentals of many crypto projects are strong. Committed teams and communities are actively building, despite the miserable price action.
Whether its DeFi, DePIN, AI, or RWA, partnerships are forming, blockchains are being interconnected, transaction counts are growing, and usage is increasing.
4. Market Cycles
If it hadn't been for the temporary bear markets of 2012, 2015 and 2019, I would be a lot more pessimistic about the situation today. But we have seen crypto recover from bear markets time and time again (despite our friends and family questioning our sanity).
If history does indeed rhyme, we are just in another temporary lull - perhaps one that has lasted a bit longer than expected, due to unprecedented monetary/fiscal policy and geopolitical tensions.
Bitcoin has never failed to recover from a bear market. Lo and behold, it recently made a new all-time high after crashing in 2022. Many quality crypto projects are likely to follow when investors recognize their potential.
The Alternative
Of course, we could simply surrender after being beaten down repeatedly. But what's the alternative?
We could go back to slaving away for the dollar, expecting it to remain the dominant form of money, despite $37 trillion of debt, 4.5% interest rates, and active de-dollarization.
Or we could trade all of our digital assets for shiny rocks that, while traditionally store value, produce no economic activity.
Another option is that we just HODL "digital gold" and yell at the shitcoiners for trying to innovate.
Alternatively, we continue to push forward with the dedicated innovators, risk-takers, and visionaries, keeping faith that our collective efforts, day in and day out, will gradually usher in a new decentralized financial system.
Until next time...
Given the current market circumstances, it seems crazy to remain convinced that crypto is the future of money, and that a tokenized society awaits us. On the other hand, a future economy based on crypto seems obvious when you observe the trends.
If you found this article interesting, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.