Reject pessimism and embrace exponential growth of success stories: Why do Crypto Assets always have a sense of "doomsday"?

In the face of a sluggish market and declining confidence, an increasing number of pessimistic voices are emerging in the industry. However, DeFi researcher Monk expressed condemnation of this trend in his latest article. He believes that the current state of the encryption industry is similar to the internet bubble of the 1990s, and real innovation continues to emerge amid the chaos. He calls on the encryption community to abandon shortsighted pessimism and embrace long-term encryption optimism.

Pessimism is rampant: Why does the sluggishness of the encryption market always bring a sense of “doom”?

Monk pointed out that over the past year, the encryption community has been filled with doubts and complaints about the future of the industry. Many people believe that the token economy is collapsing, project quality is declining, scams are rampant, and value is repeatedly being diluted, leading to a collapse of confidence. However, he believes:

The real reason for the spread of pessimism is that “market participants are finding it increasingly difficult to obtain excess returns,” which leads to a feeling of frustration and impatience.

When retail investors experience a high failure rate similar to venture capital, they mistakenly believe it is a depletion of innovation. However, this is not a stagnation of innovation, but rather a result of the asset structure: “The encryption market has turned everyone into 'early investors'.”

(Is Web3 innovation hitting a ceiling? From tokenization to the financing market, where is the future value of encryption? )

Industry Chaos: The Growing Pains of Open Innovation

Monk admitted that the encryption field indeed has structural problems at this stage, including:

Token models are mostly designed to be unbalanced or speculative.

The quality of developers varies.

Insufficient governance efficiency and transparency

Speculation and short-sighted trading are rampant.

He attributes these situations to three main sources: “regulatory uncertainty, low asset issuance thresholds, and the historical long-term reward for speculative behavior.”

However, he believes that these problems are all part of the growing pains that any open and young startup industry must go through, and they are all solvable.

Historical trajectory: cryptocurrencies are following the old path of the internet.

To illustrate that pessimism is actually unnecessary, Monk compares the current state of the encryption industry to the internet bubble of the 1990s: “At that time, more than 90% of internet companies went bankrupt, and there were thousands of companies that never went public, causing their investors to suffer significant losses.”

He emphasized that Amazon's stock price also fell by more than 90% within two years at that time, and later still gave rise to giants like Google, PayPal, and Facebook.

The AI industry today is also repeating history: “Hundreds of companies disappear after hype, and a few survivors will dominate the future.”

(Pompliano: Is the claim that AI will cause 100 million people to lose their jobs a false issue? Does a bubble in the capital market really exist?)

Why is the failure of cryptocurrency particularly painful?

So if 99.9% of speculators fail in all new technology industries, why is failure in the encryption field particularly painful?

Monk explained, “Because we attach the publicly traded stock symbols to each startup project, we essentially turn everyone into a venture capital investor.”

It is easy to imagine that our investment portfolio will be a field full of landmines, with many tokens potentially dropping 90% at any time.

From Bubble to Infrastructure: The Real Breakthrough of encryption

Monk simultaneously enumerated the key achievements of the encryption industry over the past decade, specifically including:

Monk believes that the product market fit ( PMF ) has been found for the encryption currency product.

Bitcoin, as a peer-to-peer network that can withstand the Third World War, protects hundreds of billions of dollars in value.

The smart contract network has established a censorship-resistant global financial infrastructure.

Stablecoins enable instant and low-cost cross-border remittances.

Decentralized Finance brings transparent lending and a new market structure.

The DEX trading volume is comparable to Robinhood, and it returns profits to users.

NFTs, meme coins, and community culture have given rise to new forms of capital formation models, such as ICOs and bonding curves.

He emphasized: “We provide an emerging alternative for everyone who can access the internet, replacing the financial system they are forced to accept due to their citizenship.”

Every year, we provide the market with many opportunities to buy generational technology stars at extremely low valuations amidst the noise, as these highly competitive challengers emerge every one or two years.

From short-term disappointment to long-term belief: choosing encryption optimism

At the end of the article, Monk quoted the futurist Ray Kurzweil's famous saying: “Technological advancement is exponential rather than linear.”

He believes that the growth trajectory of encryption is the same, and anticipates that within the next three years, there will be more than twenty agreements with product market fit (PMF) appearing.

Monk stated: “When Wall Street and governments around the world finally begin to take this industry seriously, early believers have fallen into doubt. It is time for us to reject this pessimism and embrace optimism.”

This article rejects pessimism and embraces exponential growth of successful cases: Why does cryptocurrency always have a “sense of doom”? First appeared in Chain News ABMedia.