It’s been a couple of pretty bad weeks for crypto investors around the world. Not only did the cryptocurrency market plummet for the second time this month when the bubble burst, but events such as the fall of Earth shook the ecosystem to its core. Fortunately, despite the fear and doubt they caused, the current situation has also translated into new opportunities and positive changes for the whole space.
Not only is the crypto market far from the only market currently failing, but space has also survived similar crashes in the past. In 2018, many believed that cryptography was done as a result of the ICO boom, concerns about regulatory repression, exchange piracy, and many other events. However, despite such forecasts, the cryptocurrency has endured and become even stronger as more stable and efficient safeguards have been put in place.
It’s no surprise that most experts agree that while the current cryptocurrency crash is certainly alarming from a financial standpoint, it’s temporary. Just as stocks, real estate, and gold have accidents and corrections only to recover from them eventually, cryptography is also cyclical. Vitalik Buterin shared his current state of the market in a recent interview with Fortune:
“Crypto has had ups and downs before, and has had lows before, and will have ups and downs again. Periods of inactivity are certainly challenging, although they are also often the periods when the most significant projects are encouraged and built.
The outgoing bear market represents an opportunity for cryptographic projects to gain notoriety based on their technological relevance and innovation. Blockchain networks such as Ethereum, Cardano and Polkadot have already benefited from the lessons learned from recent developments. Charles Hoskinson, the founder of Cardano, offered an update on the impact of the Earth crash on the upcoming Vasil de Cardano fork:
“After the collapse of LUNA, we decided to add an extra test harness to what we’re doing and think very well about some things. It’s taking a little longer, but we think the abundance of caution is well rewarded these days. We’ll keep building.”
From an investment perspective, the bursting of the bubble is also more multifaceted than most media and people would make investors think. Bubbles have the potential to drive investment into innovation-friendly areas, allowing projects in them to take off. Similarly, projects that rely on speculation rather than solid foundations are most often eliminated.
Once you understand the possible positive ramifications of a bubble, it’s easy to see why investors choose to get altcoins. The potential benefit of investing in the right altcoin during a bearish market is more than enough to attract investors of all levels. However, this does not mean that investing in any altcoin is the way to go as, in fact, choosing the right altcoin is even more difficult than during a bullfight.
On June 8, Grit Daily House saw Linqto strategy director Karim Nurani co-founder and co-founder of Journey’s Metaverse Cathy Hackl and Contrarian Thinking founder Codie Sanchez sit down with CoinDesk’s Jenn Sanasie to speak. about the cryptocurrency market bubble. Titled “Where’s the Bubble (Market)?”, The panel was full of important ideas ranging from the relationship of the metaverse to the bubble to how investors can navigate today’s bear market.
If you’ve missed the opportunity to attend Grit Daily House in person and hear what these experts have to say about Yin and Yang that can be a bubble, don’t worry. Not only can you see the panel in the video below, but you can also find other panels on Grit Daily’s official YouTube channel.
Juan Fajardo is a news editor at Grit Daily. He is a software developer, a technology and blockchain enthusiast, and a writer who has contributed to various projects. A lover of all trades, he was born in Bogotá, Colombia, but currently lives in Argentina after traveling a lot. Always with a new interest in mind and a passion for entrepreneurship, Juan is a news editor at Grit Daily where he covers everything related to the world of startups.