THE DECENTRALIZED ECONOMY UNDER THE PERSPECTIVE OF THE CRYPTO-WINTER

Greetings and welcome dear readers of this prestigious platform, especially to all users who make life in the community @ProjectHope, this publication allows us to continue addressing conceptually some fundamentals behind the bear market that has adopted the cryptographic world in general, therefore we will present different perspectives that allow us to understand the real process behind the so-called crypto winter.

In this sense, it is no secret that the world of decentralized economy associated with the use of cryptocurrencies, has been repeatedly making significant setbacks on the price action of different assets, reaching surprising figures that exceed in some assets to more than 50% loss in their maximum values, so that all ecosystems and cryptocurrencies have been negatively affected by a kind of generalized perfect storm and caused by the economic inflation that has been dragging society.

If to the previous scenario, we add some catastrophic outcomes such as the dismemberment of the Terra Luna project, these are accidents that I would call controlled, but that produce a higher degree of uncertainty in those users who had been assuming or betting on the world of cryptocurrencies as an alternative or more viable economic outlet in the face of the limitations of the traditional economy.

Now, what is a crypto winter in reality? Conceptually we will approach this phenomenon as a prolonged period of time where cryptocurrencies in general, enter a bearish phase, which product of market volatility generates strong ruptures and substantial economic losses in many investors, a process that is supported by a negative sentiment adopted by the masses and consequently the market, which generates sharp falls in the price of assets.

Therefore, it is necessary to understand that the duration period of this process can be extended to more than 12 months in the cryptographic world and at this point we say that decentralized finance and the economy associated with cryptocurrencies, have been showing bearish signs for the year 2022, an aspect that is influenced by the restrictions of some countries and by the attacks related to energy issues.

While it is true that the economy of cryptocurrencies seems to move in a circle, where patterns repeat themselves and where the scenario that is currently projected was already present in the past, it is a matter of great concern since the possible crypto winter that may occur is accompanied by large-scale economic flows and accompanied by the movements of traditional economic systems, so I dare to say that the crypto market no longer generates isolated movements of the economic process that we all know and that has prevailed for decades.

Therefore, for many analysts it can be assumed as necessary cycles to be able to generate capitalization and the necessary strength or momentum to break the resistance generated and to be able to assume a change of trend from a bearish space to a bullish space.

Based on the above, at present we are able to identify different factors that allow us to think that the arrival of the crypto winter period is near and about to arrive, since if we analyze the context we realize that we are immersed in a strong inflation where the movements of the great powers of the world are struggling in terms of a depreciation of this.

A problem to which is added the emergence of the current war between Russians and Ukrainians, without forgetting the prohibitions that different countries have established in order to limit the use of cryptoassets, likewise we can see how the most important markets including the stock exchange, have generated a large depreciation in the financial capital of the same, which seems an existing correlation between the different economic markets that are handled at the level of our society and to which cryptocurrencies have not managed to escape.

So this is the moment where decision making and assertiveness of thought play a determining role between what it means to take risks or learn to capitalize in a market that apparently will walk towards bearish fundamentals.

Grateful with the community @project.hope and with all the management team of the same one that they motivate us to continue working in a mutual and balanced growth.