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It has been a difficult year for virtual currencies and projects in space. After an excellent 2017, 2018 received the market with a sharp decline in the prices of most digital assets. Dovey Wan, a founding member of Primitive Ventures, wrote an article explaining how it is possible to start building the encrypted market again.
Many investors who entered the space at the beginning of the current year or at the end of this year were the most affected by this bear trend. However, Dovey says there are two aspects related to the blockchain industry, one is the side of the investment and the other side of the development.
He says that investors and developers are disconnected from each other since there has been much publicity in the industry that has influenced prices. This led to an asymmetry between price and development. In the future, the market may continue the bear trend it is currently in, but there are interesting things that are improved on the technology front.
After talking to several influential leaders in space, Dovey believes that 2019 will be the year when the violent delights of people will reach violent ends.
He also talked about how miners are starting to suffer from this sell-off experienced by the price of Bitcoin (BTC). The Bitcoin hash rate reached its all-time high in August and has since collapsed by 50%.
With the fall in the price of Bitcoin, mining activities with the old difficulty were no longer profitable, which is why several miners decided to sell their hardware and leave the market. During 2017 and part of 2018, the number of miners has increased almost exponentially. Most miners believed Bitcoin would be worth much more in the future, allowing investors to be profitable. However, this did not happen and now they are closing.
He went on to say that although the market trend is currently brutal, it provides the necessary conditions to create an opportunity for extraordinary returns. Those who produce a truly valuable work will clearly be rewarded in the future.
"It could be the worst time for markets, but it's the best of times for real development," he said in the article.
Between the last months of 2017 and the first months of 2018, the number of projects that have raised millions of dollars has skyrocketed. Initial Coin Offerings (ICOs) were everywhere and promised to create incredible products and services to revolutionize the world. However, this did not happen in most cases.
Since many of them have failed, those who are currently investing in the market are clearly committed to the growth of space. Blockchain products could get organic adoption right now compared to the hype. Users will not be confused that the adoption rates of a specific product are related to advertising or real growth.
Dovey says they are seeing several projects that attract communities without even offering the opportunity to invest in a pre-sale or pre-mine. Other projects such as Monero (XMR) and Zcash (ZEC) are also working on different implementations.
The article ends by saying that in 2019 cryptography is meant to "radically alter the way we do transactions, privacy, property and many other things we can not anticipate". However, he says that in the short term the market conditions remain brutal.
Now it is important to pay attention to development rather than price. This would help cryptographic space grow, reduce brutality and help the market grow sustainably.
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