The Cold Winter Persists
Everyone woke up to the new year with a few proverbial slaps to the face. The crypto bulls retreated and the bears woke up from their long period of hibernation. The traditional equities markets are bleeding and the crypto markets are showing red too.
The price of bitcoin has fallen from $21,000USD to a mere $3,550 causing unnecessary talk about a mining death spiral alongside calls by detractors such as Nouriel Roubini stating that Bitcoin is dead.
The continuous decrease in prices from all-time highs were one thing to be concerned about but now something even more real is taking place.
People are being laid off.
Steemit has laid off more than 60% of their employees, Ethereum Classic has lost a key partner in their ecosystem ETCDev. The highly talked about merchant bank of crypto founded by Mike Novogratz and company has seen significant depreciation in their assets and has had to refine their vision as well.
Blockchain infrastructure and development companies such as Bitmain and Consensys are also scaling back, letting people go and restructuring to withstand the claws of the bear.
These are serious times for crypto, talk of moons and Lambos has subsided, cries of being rekt are now more common. Many, who jumped in at the height of the boom, mourn for being at a significant loss and not being able to buy the dip.
But all is not lost.
The Bright Side of 2018
Bad actors are being flushed out of the system, the lack of prices have halted several potential Initial Coin Offerings, and regulators are clamping down on others who have engaged in fraud via ICO’s and other means.
Projects who are interested in building for the long term have shipped their products. Projects such as Bitcoin(Mainnet Lightning, Ripple, Request Network, Genesis Vision, Decred (Politea), and many more, has seen significant advancements.
Companies such as Bitexla and BancoMasventas have joined forces to use the bitcoin blockchain instead of SWIFT for cross-border settlements.
We are seeing a shift away from Tether to other alternatives. We are seeing more growth in products that carry a basket of coins, allowing investors to simplify their investing strategies, such as the BIT 10 available through the popular Abra application and the Amun Index Crypto Basket ETP.
Projects such as CasaHodl, Uniswap exchange, and Adel.io also are noteworthy for their current and potential contributions to the ecosystem.
The growth of dApps on Ethereum and EOS is also something to pay attention to as it indicates more are inclined to contribute to the ecosystem.
Also, traditional companies such Facebook is allocating more resources to crypto/blockchain as well.
The fact is that while prices are sobering, people are building. Don’t wait on the sidelines. Go and contribute. Want to read further on the future of crypto? Then check out will bitcoin recover in 2019.