Ari Paul, Founder of blockchain investment firm Blocktower Capital weighed in on the bear market, comparing the situation to the crash of tech stocks in 2000. Paul compares Bitcoin (BTC) to Amazon, which is one of the companies that survived the market crash.
In a Twitter thread, Paul he pointed that although there are “modest” products in the cryptocurrency market, many improvements must be made to become mainstream. Paul also maintains that adoption is “5 years behind” what many expected.
The executive also highlighted the network outages in Solana, the Ethereum scaling delays and the bitcoin security and future updates that are overlooked during bull runs, but “feel very different” during a bear market, arguing that optimism no longer works in this situation.
Paul then compared the current cryptocurrency market to the Nasdaq market in the year 2000, saying that most cryptocurrencies are risky and early stage. However, the Blocktower founder stressed that there will be something like “Amazon” that will survive the crash. He thinks that could be Bitcoin.
According to Paul, Bitcoin has “much more possibilities” than other cryptocurrencies because it does not have a competitor as a product, and in terms of technology. This is how he stated it on Twitter:
11/ what about bitcoin? Bitcoin is “separate” only because it’s the only crypto asset not competing on tech or product. It’s competing primarily on security/stability. So I’ve always thought that if bitcoin fails, it probably won’t be because it’s replaced by something better,
— Ari Paul â›“ï¸ (@AriDavidPaul) June 14, 2022
Despite sounding bearish, Paul clarified that he is “more bullish” on crypto now compared to almost a year ago. He just wants to warn people to be careful what they buy during the current market downturn.
The effects of the bear market have hit the livelihood of several workers in the cryptocurrency industry. Coinbase recently announced that it will lay off 18% of its employees due to declining revenue and a bear market.
In the meantime, some members of the community have provided ideas and plans for traders on what to do to survive the crypto winter. From defining their risk tolerance and dollar-cost averaging to finding new projects with potential, members of the community try to encourage others to keep going despite the coming bear market.
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