Though big and painful it has been, the recent decline in the cryptocurrency markets is not surprising. It's one of those "trends" which would occur again unless immediate measures are put in place to stop the menace.
The reference here is not to the familiar problem of poor regulation for the digital economy, or the latest trending topic of how Bitcoin mining is a threat to the environment.
Even as far back as 2016, talks were already being made on the need for governmental institutions to establish laws guiding how cryptocurrencies operate.
Moreover, environmentalists never ceased to voice concerns on the scary volume of carbon emissions created during crypto mining activities, advocating instead for the use of green energy.
And, although expectations have been let down, substantial steps are already being taken to salvage these problems.
Aside from that, nothing much has changed; it's still the same old cryptocurrency industry today, where the majority are betting on it from an emotional perspective.
What then? Must everyone join the parading mass to hoist the flag of "decentralization"?
No. At its very core, decentralization is just a technical model for applying blockchain technology. However, digital assets mean more than just the mere practical use-cases of a novel idea.
Take the first front for example - a secure, impenetrable, and computation-driven money system, against the fiat currencies which are centralized and have effectively wrecked the world into inflation.
Another front - the global financial system built by the rich for the rich, against the blockchain alternative in DeFi platforms which embody the principles of democracy as free, fair, and incorruptible, suitably designed to cater to the financial needs of anyone around the world.
Similar scenarios can be drawn in other sectors such as insurance, hedge funds, lending, supply chain management, content monetization especially for artists (NFTs), and many more.
However, the point I am driving at is this: a simple understanding of how all of these are made possible, is the right of passage every crypto investor ought to pass through.
The crypto market needs to get to a place where sound investment decisions are based on a careful analysis of the above scenarios as the key fundamental elements.
And this is why trading crypto for mere profit is in itself very wrong. But that’s a subject for another day.
A new investment mindset
Unfortunately, the crypto market is hype-driven. And for social media "constants" like Elon Musk, it means having a big room to tinker around with the minds of those who have only gotten emotionally connected to the "train".
The crypto community needs to understand that a sound investment decision is the result of careful analysis of key fundamental factors.
Hence, the more focused people become on the tech itself and how the world stands to be bettered by it, the healthier it will become to invest in cryptocurrencies.
And there is no better way to reflect the "mindset change" than to see project managers and investors sharing a common belief in the power of blockchain technology to bring about the expected revolutions.