Anyone who’s been watching what’s being dubbed as “the cryto winter” has undoubtedly had their confidence in crypto shaken over the past several months. Even the most confident investors have been worried by the numbers. After all, it’s never a good thing to see your investments drop by a whopping 80%. Financial institutions, many of which were setting up crypto desks, have now adopted more of a “wait and see” approach.
Matt Hougan, one of the crypto experts at Bitwise, has talked about how there are now about 2,000 crypto projects on the market. Of these, he expects only about 100 to actually stand the text of time. It’s a staggering figure, one that would give pause to anyone currently thinking about either investing in a new token or starting up a new project.
However, it’s important to note that Hougan, like most crypto maximalists, believes that it will actually be a good thing when these inferior crypto projects bite the bullet. In fact, the crypto community as a whole has been doing a lot of self-reflection after prices shot up to $20,000 and plummeted. Now, the feverish frenzies to do ICOs have calmed down a bit as people assess the damage and move forward with projects they believe could actually work. Also, the fair-weather investors are now out of the market, leaving the real crypto supporters to reap the benefits of a decentralized system.
Lately, there’s been a lot of public interest in the dot-com bubble of the late nineties, with shows like “Valley of the Boom” delving into the early characters of the internet. According to CryptoPotato.com, many crypto experts, including Hougan, have made comparisons between the early internet’s bubble bust and what is happening with cryptocurrency right now. Although the bubble bursting was extremely traumatic to those who experienced the bad side of it, a lot of good emerged as well. Companies such as Google and Amazon emerged from the tumultuous wake, and the world has been better for it.
Also, it’s worthwhile to note that hiring in the crypto sector has been up. Although this surprises many analysts outside of the tech industry, it’s not so shocking for those who are on the inside. People are leaving lucrative jobs at stable companies to get into the action and be on the ground floor of something new and different, and this is perhaps the best sign that crypto will survive.
