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At the end of 2017, it seemed almost inevitable that Bitcoin and Ethereum would take control of the digital finance world, mainly because they offered consumers new offers (such as dApps and smart contracts) that made international monetary transactions highly simplified and problem-free.
Fast forward at the start of this year and the prices of almost all major altcoins have dropped more than 80% – with Ethereum starting to sell less than $ 100 last December after climbing up at an ATH of $ 1.4k only 10 months earlier.
Although a mini-recovery (of sorts) has followed over the last few weeks, the long-term situation continues to appear rather negative for the industry as a whole.
In relation to the question, Peter Du, the founder of Du Capital, recently spoke with an authoritative media outlet regarding the short / long term future of this rapidly expanding sector:
"The cryptocurrencies, which were once the new treasure and the investor's dream, have now lagged behind, given the current crypt, to maintain hundreds of billions of dollars in valuations supported by unprotected coin issuance. it was unrealistic and long-term, unsustainable.Ethereum as an infrastructural blockchain on which other currencies were imposed, was a temporary beneficiary and grew as a result of the evaluation, but without an equivalent growth in mass infrastructure, ecosystems and adoptable applications. "
Du then went on to explain that the unjustified breaking down of ICO from Securities and Exchange Commission in the United States had contributed to many companies to sell off their digital holdings (in order to minimize losses and obtain more "stable" assets). Not only that, Du also stated:
"Now that the US Securities & Exchange Commission has issued more stringent regulation on ICOs, somewhat rediscussed assessments have returned to Earth. Ethereum's inability to scale has a huge cost, not just for its project, but also for token holders and other tokens that rely on it, we also see it with other infrastructure currencies, such as EOS In the medium term, they risk marginalization, as new public and sector blockchains increase their ".
That said, he said the future is not entirely gloomy and moving forward, the digital finance community needs to learn from everything that has emerged over the past two years.
Final take
Du believes that in order for the cryptosystem to flourish and enter the mainstream, investors must change their mindset and stop worrying about short-term gains. Instead, he believes that the community in general should look towards
"Solidifying long-term components to make blockchain a formidable and reliable ecosystem".
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