The crypto market is a complex ecosystem that has seen many ups and downs over the past few years. It's tough to predict how the market will shape up in the future, but one thing is clear: at its core, the crypto industry relies on trust.
This applies not only to investors who purchase digital assets but also to exchanges which host them and service providers who provide them with protection from theft or fraud.
Governance Models
Governance models are the most important factor in determining the future of crypto. It's fair to say that governance models are not yet well defined, and there is no single best way to govern a decentralized network.Decentralization is hard! This means that it will take time before we know what's going on with crypto governance and whether or not it makes sense as an approach for making decisions about blockchain networks.
The key thing to remember here is that while there are many different ways of thinking about how we want our blockchains run, they all come down to this one question: do we want some people controlling them? Or do we want everyone in charge?
Hacks, Hacks, Hacks!
The crypto market has seen its fair share of hacks in the recent years and months. This has amounted to over $3 billion in losses year-to-date. The most recent example is with FTX, it is reported that $473 million have been nabbed from the FTX exchange.While these hacks may be very disheartening for investors, they're actually good for blockchain technology as a whole. They show that there are still security vulnerabilities in this new world and encourage developers to improve their products and harden them against hackers' attacks. Every hack is like a bug that’s discovered on the software which can now be resolved and improved upon.
The Future Of The Market And Industry
The crypto market is still young. It has only been around for barely over a decade, and it is still evolving. As the industry grows, we can expect more regulation to be applied, as well as innovation in both products and services that are offered by companies (and individuals) within this space.Additionally, there will be more utility for cryptocurrency as time goes on as well as adoption by users looking for ways to use their assets outside of speculation alone (i.e., trading). Majority of the utility in crypto is still in trading and investing,
However, it's also important to learn from past mistakes so that we don't repeat them. Poorly financially structured systems with over leveraged assets that don’t have enough actual use cases are not the way forward.
I think the crypto market will be dominated by utility tokens in the future as they offer a more stable and secure way of doing business than other types of projects.
Conclusion
I think the future of this industry is bright, but it will be difficult to get there. Of course, the stronger the community, the easier it will be. But we fundamentally have to shift our focus from ‘price’ and ‘quick wins’ to utility and putting in the work. Otherwise the same mistakes will keep on happening.Blockchain is a marvelous technology that can be used to solve a number of pressing problems but some people somehow want to use it to build a pyramid scheme and finesse others just to satisfy their base desires.
The current recent events are just a bump in the road, albeit a steep one. We just have to make a few changes and continue the journey.
Thanks For Reading!
Profile: Young Kedar
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