It’s been two weeks since the last cryptocurrency/Blockchain conference in New York, where the mood was “as usual” for crypto. Just take it easy “hodl” is on. But after the Messari Mainnet Conference in Manhattan, crypto investments still stink. So, will the winter in the Bitcoin and altcoin market come to an end? Market and investment expert Kenneth Rapoza seeks an answer to this question.
Will regulations be a catalyst for Bitcoin and altcoins?
As you rival on Kriptokoin.com, its investors were hoping that Ethereum Merge would help them turn the corner. However, Ethereum (ETH) has dropped over 65% to date. Perhaps the good news is that both ETH and Bitcoin have been beating the Dow since the New York conference. Considering the sullen market, nothing to write home about. David Morris, who attended the conference as both a guest and moderator last month, described it as “the most important crypto bear market in history.”
Some industry leaders were excited about the “regulation” for crypto, which seemed anathema. Serious cryptocurrency/Blockchain developers want regulation as long as it gives some credibility to their segment of the tech world. The regulation means “you can trust us, we don’t do scam coin projects”.
So when Binance CEO Changpeng Zhao, known as “CZ” in the crypto world, tells Mainnet aggregators that governments are making “positive progress” towards regulation, it appears that it means investors can trust Binance.
“Crypto market has fallen but will survive”
The thing is, CZ and the likes have had so much money in Bitcoin since the early 2020s that they could cash out some of those losses and give lots of parties to the splurge with A-. Remember, BTC was below $10,000 before the Covid panic. List blockchain bloggers, egghead coders, and a few venture capitalists where yacht rock music really plays in the Hudson River. They are optimistic because they are still full. The bears have crushed most of the crypto day traders and hodlers.
“I lost the equivalent of a middle-class salary. But I’ve never sold, so I’m a hopeful hodler. There are people like that and there are people like CZ. What is in this market for individual traders at this point? Bitcoin (BTC) has fallen. Should we be buyers? Or as they say on Wall Street, never try to catch a falling knife. Úrsula O’Kuinghttons, director of communications and partnerships at the Web3 Foundation and Polkadot (DOT), is not afraid. “The crypto market has fallen, but it will survive,” she says.
“Bear markets are for builders!”
As in the early coin offering days, there has been a lot of talk about the emergence of new projects. Even more so than in the last bearish cycle, which was the death of the ICO cycle. And there is enthusiasm and hope in that happy hour conversation. Because what else do you have? Either cryptocurrency will be something for the masses to maintain a decentralized, uncensored, transactional existence in cyberspace, or it will be something for Sheldon Coopers and The Gamblers of the World.
Jeremy Epstein, marketing manager of Radix, a smart contract platform building tool for developers of decentralized finance applications, said, “A favorite saying among cryptocurrencies is that bear markets are for builders. The weather in Messari repeated this. They know that cryptos will win. “Companies and people are investing in this generational opportunity,” he says.
Some notable takeaways from Messari include the uncertainty surrounding regulatory frameworks and a friendly agreement that the current Ethereum Virtual Machine (EVM)-based paradigm for DeFi will not scale anywhere near the levels needed to get it working any time soon. All told, the participants believe that the cryptocurrency is not dead and that the game is DeFi. Sorry, NFT Ape Yacht Club guys!
For now, winter will continue for Bitcoin and altcoins
Also, in terms of technology, the current crop of Tier 1 smart contract platforms is losing its adherents and faith. “The sentiment on the Mainnet was positive,” says Greg Hemmer, head of ecosystems for Shardeum, a new smart contract platform launching in 2022. Shardeum is located in Zug, Switzerland. He says decentralization benefits society. This is what cryptocurrency investments are still missing. Many investors own coins and do not use them as investment securities they buy from Coinbase.
The Messari Mainnet conference takes place once a year. It first happened in 2018. Weeks after leaving the conference, Epstein said, “Everyone is looking for catalysts for the next bull run. Everyone believes that the bull run will eventually return,” he says. For now, the end of the crypto winter is not in sight. The doom and gloom in the markets is not helping. But crypto investors have been here before. If Messari contributors are correct, the patient investor will get the reward. next year? When traditional securities investment sentiment returns, it will also return for obsolete cryptocurrency.
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