5 Reasons to Stay Bullish on Crypto
“Volatile” might be the most generous way of describing 2022 from an economic perspective. Global markets have been restless and emerging industries like digital assets and cryptocurrency are no exception. Prominent talking heads and prognosticators have, once again, proclaimed this as the beginning of the end of crypto.
We at Targeted Victory don’t subscribe to this sort of hyperventilating. In fact, we couldn’t disagree more. Yes, it’s important to keep an eye on these short-term market movements, but it’s far more essential to keep the long-term view in focus.
For clarity and context, here are just five (of many) reasons to remain as bullish as ever on crypto’s future.
1. Global economic conditions impact crypto the way they impact everything else.
There is no country or industry untouched by the economic instability in today’s world. Consumer prices are soaring, stock indexes are dropping, interest rates are rising, GDP is contracting, supply chains are in chaos, and layoffs are hitting tech, real estate, manufacturing, and other sectors. The reverberations from a global pandemic, along with geopolitical anxiety from the war in Ukraine, add further layers of uncertainty. All of this is painful and has real costs, both human and economic. Companies and projects in the digital asset ecosystem are not immune from the effects of macro headwinds. These aren’t problems with crypto; they’re problems that impact crypto, just like they impact the rest of the economy.
2. Bear markets have come and gone in crypto before.
Industry veterans are well aware of the patterns of the last decade: periods of rapid expansion followed by a “crypto winter” in which investment slows and growth temporarily contracts before resuming its upward path. While critics use these moments to publish crypto’s obituary (Bitcoin infamously has died over 450 times), other observers note the steady growth over time of projects, startups, investment, and public interest. Downturns play a role in a healthier long-term environment: bad projects and actors dissipate while builders refocus on the most useful applications of their work. A number of major, industry-defining companies have been built during previous bear markets. Crypto has emerged in a stronger place after each dip and will be ready to do it again.
3. Building and investment continues in all market conditions.
The industry is adding an astounding number of creative minds to design, develop, and build out this new infrastructure. The kind of brainpower and talent migrating to web3 communities on a daily basis is a leading indicator of the upside to come. On top of that, mainstream corporate interest in digital assets continues to grow: top financial institutions, credit card providers, multinational retailers, and more. And the unmet needs for crypto’s numerous uses are simply too large to ignore, from more efficient ways of sending remittances and humanitarian aid to facilitating small business growth to providing financial sovereignty for underbanked populations. Speculators will enter and exit, but people of conviction building serious ventures will remain and thrive — because they are creating actual solutions to real-world problems.
4. History is on the side of innovation.
Innovation waves tend to wash over an economy completely, regardless of the existence of skeptics and critics. From the time of the Renaissance period — when the advent of the printing press and double-entry accounting facilitated the spread of knowledge and economic value — through today’s digital economy, there is precedent for society’s embrace of new and transformative ways of doing things. In recent years, builders in the tech industry overcame the uncertainty of the 2000-era downturn to redefine the way we work, learn, and communicate with each other. When apprehension and doubt returned after the financial crisis in 2008, we saw a flurry of start-up activity that produced many of the digital tools we now use in our daily lives. Not everyone gets on board right away, but the force of innovation wins out over time.
5. It’s not about getting rich quickly — it’s about empowerment and freedom.
The purpose of crypto has never been to provide an instant path to wealth through unending price appreciation. Its purpose is to lay the foundation for systems that are faster, better, safer, less costly, and more accessible than their predecessors. Its purpose is to solve problems that inefficient legacy systems have failed to solve. Within that purpose is the promise of a new, decentralized framework that can democratize the concept of ownership and empower people to take control and custody of their own creative, social, and financial value. As David Hoffman, founding father of the highly recommended Bankless, has noted: “Crypto wasn’t created to make you rich. It was created to set you free.” With a smart approach and the right policies, sustainable opportunities to build, grow, and prosper can be more widely available than ever before.
We were excited to launch our digital assets practice at Targeted Victory earlier this year, building a foundation of world-class experience and expertise for an industry that will drive America’s next-generation competitiveness.
In the months since then, our optimism about the potential of crypto to unlock economic value and strengthen communities has continued to grow. We shouldn’t be afraid of forward-looking opportunities like this. The digital assets industry is full of builders and creators with growth mindsets and a mission-driven passion for what they do, and we’re proud to work with them.
Evan is a member of Targeted Victory’s Corporate practice, focusing on crypto and web3 issues. He served as deputy communications director for Mitt Romney’s 2012 presidential campaign and has more than a decade of high-level experience providing counsel and analysis to public and private sector leaders. He holds a B.A. from Johns Hopkins University and an M.B.A. from the Jones Graduate School of Business at Rice University.
