In 2012, after Bitcoin hit an all time high of over $1,000, the market went through a multi-year crash. BTC has lost 70% of it’s value, lost billions for investors and was declared dead. A lot.
In 2017, after one of the greatest value generating period of any new technology, the market is beginning to wane. Inevitably, the market will begin to fall, and history shows this is never a calm transition. You can read more of my thoughts on this here.
In the short-term, investors are able to withstand these bumps (Ethereum is still up >200%, they’ll say). But what about next month when the price is still struggling? Or next quarter after a small recovery that losses it’s value and then more?
As time goes on, they hype will dissipate, innovation will slow, critical flaws will be revealed and many developers and investors will walk away. The news outlets will quiet, many companies will fold and the industry will come to a stand-still.
And it is exactly at this time that you should go all in.
When Markets Crash, You Will Find Opportunity
When there is money to be made, the markets are flooded with people trying to make money. It’s easy to get crowded out during these times and not making progress. But when the cheeriness of the market fades, most people people move onto the next big thing, and you’re only left who believe in the cause. This is the time that real progress is made.
During the last crash, many prominent figures in the blockchain community built their reputations. Before 2014, Vitalik Buterin was known as a developer and writer on Bitcoin. However, it was only after he published his ‘Colored Coins‘ paper that led him to the founding of Ethereum and widespread success.
Andreas Antonopolus, one of the largest thought leaders on Blockchain technology, was unknown before the crash. After learning about Bitcoin, he decided he needed to write a book to explain the technology in detail. The book was published in 2014, right as the crash was starting. It was during these years that Andreas was able to spread his reputation and make an impact on the industry.
There are many more who built their businesses and technology during the cryptocurrency crash. These are the few you want to count yourself among.
The Real Value of Blockchain Technology
Many get into cryptocurrency because of the investment opportunity. Before I was involved in building blockchain companies, I was a hobby investor, trading cryptocurrencies without giving a damn about the technology.
But as the markets flourished, I dived deeper into the technology and realized there was something much bigger happening… and most people were blind to this potential.
Blockchain is an opportunity for businesses to re-invent themselves and give control back to the people. Money and Data had to be centralized in order for our society to function, but that is no longer true. We don’t have to stand for banks gambling with our funds or losing our data due to lazy security measure. There is now a means for people to own, control and manage their information with confidence.
Today, this industry is an infant, but shows potential unlike any other technology. It needs to nurturing hands of dedicated users to understand and build it. And now is the perfect time to find your place.
When the market crashes, you’ll have your opportunity to make an impact. So buckle up and show some grit. Things are going to get a lot worse before they get better, but at least you can count yourself among those who can withstand these times.