The digital currency market is crazy — but are we free-falling or learning to fly?
I’ll never forget the first time a much younger (and more limber) Russell jumped off the highest diving board at the pool of our local recreation complex. I was terrified and felt like I was falling for an eternity. The only comparable experience in my life was one shared by a great many investors when watching the NASDAQ take its own considerable plunge from a hefty 5048 points in March 2000 to 1114 by October 2002.
The sky is falling they said. The dot com bubble has burst they said. And that whole internet thing? Fuggedaboutit. Clearly a fad.
And yet, as we know, the internet made out just fine. In fact, it has since changed and permeated our lives in every way imaginable.
What that spectacular display of extreme market dynamics taught us (as many have done before); is that those of us creating something of great value must keep our eyes on the future potential, learning from the challenges we face while keeping development moving forward unabated. The cream of the crop won’t just survive; they may even thrive in adversity. Today, I’m a savvy investor. I’m also a pretty good diver!
I think it’s safe to say that a lot of folks feel like the digital currencies industry is slowly and spectacularly falling from the high diving board right now. And that’s a valid feeling when you’re living through the dynamics of a disruptive market a year into a significant correction. While I acknowledge that any other asset class has never endured and recovered from a 90% reduction in value, may I remind you that in the one decade that digital assets has been in existence it has already experienced a correction of 70% or more eight times over.
Truth be told; the experts see it as no big deal.
Why? Because they know that investing in the bold new technologies of the future was never for the faint of heart. And that perhaps, similar to the dot com boom and bust, the recent downturn was to be expected. Heck, it may even benefit us all in the long run.
Think about the thousands of non-viable dot com companies that were weeded out in the early 2000s’ Darwin-esque Survival of the Fittest. Similarly, perhaps the digital currency space doesn’t benefit from having two to three thousand types of currency in the blockchain. At the risk of sounding harsh, maybe companies without a viable product or long-term vision, or those whose only goal is to take the quickest route to personal billionaire-dom are clutter that needs to go.
I can say with certainty that the current market softness does NOT mean that blockchain technology was only a fad. Sure, the mass adoption of cryptocurrency has slowed, but, I have never been more bullish on future of this powerful technology and the role EZ Exchange will play in this space.
This is a function of what I have seen on inside. The pace of development accelerating around the world. The fact that some of smartest people on earth are learning, exploring and investing in the blockchain; with significantly more funding coming from well-established Fortune 500 companies (always a good barometer!).
Back in August 2018 when I attended the Toronto FinTech conference, I admittedly went to sneer at how all the financial giants would take a Warren-Buffett-like stance on digital currencies — namely, “why to avoid it like the plague”. But that’s not what happened. That’s not what I heard.
Instead, the companies in attendance demonstrated an impressive level of understanding about what the blockchain represents and a real appreciation for potential disruption in their industry. Perhaps taking notes from similar market disruptions (think file sharing in the music industry and Netflix in the TV and film space), they are figuring out how to work side by side with the blockchain. They’re honing in on how to embrace and incorporate blockchain technology, digitize financial assets and ensure token security. This in addition to the sheer momentum of development, investment by Fortune 500 companies and the amazing disruptive power of decentralized currency tells me that the blockchain is here to stay.
And so…I urge you to think of the good old “world wide web” before you give up on the blockchain. While you can surely ride the highly dynamic crypto market with caution, it’s also in your best interest to separate long-term technical viability from short term market variations.
After all, no fall lasts forever.