Many people who read the title may think the "bad side" refers to the bear market, but although that is usually quite hard to swallow by newcomers, it's not its bad side, in my opinion.
Source - There is a dark side of the moon (the same one always)...
The 4-year crypto cycle has the side effect of increasing the focus on short term instead of long term. When we think about the average lifespan of a person, 4 years is short term.
Yes, we can have multi-cycle approaches, but how many times do we make decisions based on THIS cycle alone?
What's wrong with this type of thinking: "In the 2014-2017 we had ICOs, in 2018-2022 we had NFTs, what's hot now? AIs!"?
What's wrong is that ICOs is almost a taboo subject because most of them were scams and now the SEC is sniffing around and they gave them reasons to do it. NFTs could've been something big. But their name was tarnished by the plethora of meme-like NFTs with no utility and sold at incredible prices. Not that the ones with utility delivered very well. What now? Let's all hype into the AI tokens because they are the future... until the next cycle.
Is AI a major industry right now and likely to continue to grow exponentially? Yes. So why wouldn't AI tokens become a great multi-cycle investment? As we know, AI is CPU and memory intensive, and the more advanced they get the more computing power and memory they need. The ones that have or can afford this kind of computing power are major corporations. Wouldn't a distributed model work, where the AI uses the computing power from many regular people who would rent their CPUs (and memory) to such a service, for example on a public blockchain? I don't know. It's one thing to have a supercomputer model, another to deal with a decentralized/distributed system and consider the internet connections lag, for example. Speed is important for these AI models.
I had a brief look at what is considered top AI projects in the blockchain space. They are no competition for what is offered by major corporations, but if what is promised is delivered, they may have a positive impact in the crypto space. But didn't we think the same way about NFTs the cycle before? And yet many have forgotten about them already...
True success rarely comes by thinking in 4-year cycles.
Can profits be made using this short-term approach? Sure! Does it help the development, maturing and growth of the crypto space? Not at all, quite the opposite!
Think about all the projects with a long term perspective and those involved in building them. How do they feel seeing all this sh*t around them and lack of interest in what they are building? And yet, they are building the crypto space, not the one-cycle projects, many of them scams or never materializing into anything concrete...
Want to check out my collection of posts?
It's a good way to pick what interests you.
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You are right. The short-term perspective has hurt the crypto space more than anything else. I think only large scale sensitisation on the matter can correct this. But it all comes down to vision and patience. Many coming into crypto are doing so for short-term money and not to have a meaningful impact.
Thanks for sharing your perspective with us. Have a nice day.
I saw even Vitalik Buterin talk about this at some point. Maybe he is biased because many of the meme coin stuff is happening on Ethereum's competition, but that doesn't make him wrong.
The short term profits have definitely destroyed a lot of things. ICOs, NFTs and Defi are all things that I think got crushed. I think people just join the hype train so development increases for a bit then crashes after people have made their money.
Ah, I forgot about the first wave of defi with all the rug pulls and bad tokenomics. Another thing that got a bad name even if, like NFTs, they can still have a good future.
I’m new to crypto but I’ve always heard that crypto has its ups and downs. Well, I’m one of those panicking now but I’m sure I’d get used to it in no time
This is not even the bear market, although for many alts it might feel like it. Panic is bad in any type of investment. You need a plan, usually made well in advance, and you need to stick to it. Nothing to worry about. Let's wait for the fall and winter... You'll likely see a different face of crypto then than now...
As for NFTs, I think there was prospects I just think so many NFT projects were scams and didn't have the structural framework of what potential Industry it might have created in crypto, simply put, it was underdeveloped and many of the owners just wanted to cash out.
I agree. There is a word (well, two) for it in crypto - rug pulls. But unfortunately, the bad name was associated with all of them and with future ones, despite the very interesting applications that can be developed using NFTs.
Hi big bro, hope you're doing great. It's really sad to see the crypto space dominated by short-term thinking. NFTs had potential, but scams really did damage and tarnished their image. Now that AI tokens are hyped will they deliver long-term value🤔🤔🤔 I'm thinking only time will tell this.
To be honest, I'm hoping they will, even if I haven't invested in any AI tokens. That's because the domain will have exponential growth in the future, and it would be great to see a combination of AI and crypto catch on.
Yes G.. it definitely would be awesome to see AI and crypto 🥰
I think those that are focused on building their products need not worry about these cycles. I believe that if their product is good, the users will come anyway.
Unfortunately, they need to think about the cycle, especially if they have limited funding.
That's not always the case. There were situations when users have chosen inferior products for various reasons. Marketing is one differentiator. Probably sometimes a little bit of luck helps along the way.
AI tokens? Does the AI now have some crypto tokens?
These are blockchain-based projects focused on AI. They have their own tokens, as any crypto.
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