Cryptocurrency technology went through an incredible phase of growth in the past two years both in terms of value and public awareness. Bitcoin “mooned” from less than $10k to over $60k at its peak, and many alt-coins with limited utility were posting thousand percent returns. More importantly, mass-market applications followed the skyrocketing price to create user acceptable on-ramps; giants such as PayPal, Robinhood, and Square added crypto features to their various apps. However, now that these investments are diving, our societal enthusiasm for this invention has drastically fallen alongside the coin prices. Let it be clear- the speculative bubble was overall a monumental crypto milestone, exposing the tech to a whole new audience. Still, its underpinnings were not solid. A financial tool that is mainly speculative can not have lasting financial permanence: there is no economy on the moon.
For crypto to reach its true potential, we should take advantage of this market correction to mature the industry and bring a more sober DeFi vision to life. Instead of promises of unsustainable yields (I’m looking at you Luna), crypto developers can turn their attention to stabilize its foundations. After all, with plummeting token prices, the raw materials for crypto developers are now much cheaper than six months ago. A bear market for crypto has the opportunity to weed out the rug-pullers and fly-by-night, get-rich-quick projects and let the cream of the crop rise to the top. Just like the dot-com bubble cleared the way for Alphabet, Amazon, and eBay, the crypto crash of 2022 will ready us for a new breed of crypto companies that will be much more important to the world financial stage than their predecessors.
The next generation of crypto companies should not lean on speculation. They shouldn’t promise 10x returns for financial instruments whose traditional analogs are much cheaper to mint; they should be cost competitive with their trad-fi counterparts and beat them by featuring the De-Fi values of user independence, transparency, and safety. They shouldn’t be issuing JPEG hash NFTs trading within a small group of insiders, but rather leveraging the potential of this technology to create dynamic personal digital experiences that change the way millions of people experience art and creativity. These projects won’t need their coins to “moon” because they will be connecting to the crypto community as users adopting their products rather than as investors. Now that all the speculative noise is tamping down, the real innovators in crypto will have a chance to shine, and that’s a fact Old Bones is excited to bet on!
Mining at the keyboard,