Bitcoin critics are resurrecting as the crypto markets face tighter regulations and rules on the use of cryptocurrencies, as well as when central banks raise rates. According to 99Bitcoins data, since 2010, the largest cryptocurrency has been called “dead” at least 458 times. This year, 19 such cases were registered.
However, ReSource co-founder Ashley Taylor Buck believes that bitcoin is now alive “more than ever.”
“Bitcoin is the most compelling example of a neutral, unbiased monetary system. It is the only large-scale, truly decentralized network capable of handling the amount of cash needed by sovereign and nation states to trust and interact with each other. There is also no chance that bitcoin can disappear because the blockchain is running on satellites in space,” Buck said.
According to Buck, the crypto market crashed for two reasons:
- The Fed raised rates to “alarming levels” and
- companies and investors are carried away by borrowed funds
Terra (LUNA) and its sister stablecoin TerraUSD (UST) could also have caused the crypto market to crash when both coins began to lose value in early May.
The wave of Celsius Network liquidations has also had a major impact on the decentralized finance (DeFi) ecosystem. Buck believes that the Celsius situation has the potential to cause long-term damage to the industry.
“The crypto space also lacks robust investments based on the project’s future potential. Whenever there is such a shock to the system, it exposes the lack of real blockchain fundamentals,” she said.
Is there any hope?
Since November 2021, the crypto space has lost about two-thirds of its all-time high total market capitalization. However, given the current bullish signs and funding, such as the $130 million Magic Eden deal, the market has shown signs of hope. According to according to CoinMarketCapthe market capitalization of the industry is consolidating around the $940 billion mark.
Buck notes that real projects will continue to develop, but the perception of retail and trust in the crypto space has changed. And it will take some time to return to the state before the collapse, because “rebuilding trust is not easy.” Buck added:
“We are likely to see more liquidations and clearing the market of bad projects. However, some good projects will also die. In the long term, web3 will be the next level of the internet within 5-10 years and there are several good opportunities for investors to acquire assets at low cost right now.”
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