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Crypto markets are different from traditional markets. They’re founded on asset-to-asset trading, not fiat-to-asset trades.
Prices are down across the board, but are we really in another crypto bear market? Was even the last one actually a true bear?
Bear markets are typified by downward swings in development. The crypto bear market of 2018 certainly fits that bill.
Blockchain, cryptocurrencies, dapps and defi have only undergone substantial increases in development. Fiat influxes into the overall market cap rises and falls. However, development remains as aggressive as ever.
Did the Bitcoin Lightning Network slow down during the last so-called “bear market”? Are these developers slowing down now that BTC has found shelter under $50k? How about Ethereum 2.0?
Need more proof? How about IBM blockchain-as-a-service, Amazon Managed Blockchain, Oracle and Jack Dorsey now dedicated to Square? All of these companies come from traditional tech backgrounds and now focus on blockchain to at least some degree.
Universities throughout the world have curriculum supporting blockchain development- not just independent courses. Walmart recently selected a couple hundred stores to test out Bitcoin ATMs. Croatia's largest supermarket franchise recently began accepting nine different cryptos.
We’re in the golden age of crypto. Here’s why some might miss seeing the new reality:
- Transitioning from fiat to crypto means relinquishing power
- Blockchain is more intimately tied to supply chains than fiat systems
- Blockchain offers unparalleled programmability
- Blockchain offers unparalleled efficiency
Each of the above factors allows for change on a massive scale without the need for a great influx of fiat derived value. That means change can be sustained under the public eye. Well of course, if the public were to do its due diligence and examine blockchain systems, such change would become apparent.
Like the internet delivering an explosion of information, blockchain will do the same for global finance. Does this mean that we may never again experience a bear market? I leave that for you to decide with a final question:
Will the world ever again see a lack of education on par with the pre-internet illiterate society?
Hi friend @machnbirdsparo
I stand by the title of your post, because for me the current scenario is not another bear market for cryptocurrencies, from my perspective it is a necessary correction before continuing its bullish channel, I agree with you when you express that we are in the golden age of cryptocurrencies.
Best regards, be well.
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Hi @machnbirdsparo
I wouldn't see current stage in which crypto market is as a "bear market".
And you're right. Amount of development which is taking place right now is quite impressive. More than anyone can comprehend.
ps.
If you look at recent flash crashes (recent one and also those two: in may and then september) then you will notice, that mass liquidation always end up consolidation period.
Overall market is still bullish. And I claim that because we're still at record high amount of BTC being stored outside exchanges (locked in defi's or stored at hard wallets).
Once market will start turning bearish, then we will witness inflow of crypto to exchanges. People will keep it in liquid form, ready to sell.
At the same time huge amount of liquidations, which just took place -> this wiped out many so called "bulls" and recent price movement has been greatly result of all those overleveraged long positions. I would not expect much aptite for risk this year = more sideway movements.
Cheers, Piotr
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