Cryptocurrency investors, hodlers, and traders are faced with the sea of decreasing figures in the market and fear rises – not an unreasonable reaction. To serve as a reminder, however, there are optimists finding the silver lining in the red.
One popular sentiment is that the bear market is removing those who are apathetically fence-sitting and that the industry is better off without investors on the fringe. When the bull market kicks in, this means that those who have remained in the industry during the bear market are reliable investors or traders and that the next peak will be stronger.
Brian Armstrong is a key example as a figurehead for encouragement, and notes that the market dip eradicates the “hype” and weeds out the less-committed investors:
“When there is hype, people are irrationally exuberant. When there is despair, people are irrationally pessimistic. Neither is true. Reality is always somewhere in the middle, more correlated with real usage (transactions per day) than the price. After many years of this, I’ve come to enjoy the down cycles in crypto prices more. It gets rid of the people who are in it for the wrong reasons, and it gives us an opportunity to keep making progress while everyone else gets distracted. We use the down cycles to build a strong foundation so we can thrive in the next growth cycle.”
With the removal of flakey investors, it might lead to the lessening of the number of scams that the industry faces. Those who remain are more skeptical of shaky projects are less likely to plug their assets into what might be a scam. Skepticism, in this case, is beneficial for the industry as is allows for healthy, sustainable growth.
As pointed out by CNBC Cryptotrader’s Ran Neuner there are several benefits of the bear:
Advantages of the bear market;
1. More time to do due diligence.
2. No more FOMO investments.
3. Less scams – investors more skeptical
4. Less time wasted watching prices .
5. More time spent building.
6. Fewer Lambos/ Lambo comments.
7. What else…?
— Ran NeuNer (@cryptomanran) October 27, 2018
Billionaire venture capitalist Tim Draper is a bullish advocate the market will see a flurry of growth in the next five to ten years. For this growth to happen, the weeding is a necessity.
“Cryptocurrencies are the next big technological tectonic shift and governments have to weigh their need to protect investors with their need to be included in this potential economic powerhouse that is crypto. I believe cryptocurrencies will overtake fiat currencies in the next five to seven years.”
Why do you think the bear market might ultimately be good for the industry? Let us know in the comments below.