Blockchain in Retail Market Report by Fortune Business Insights draws attention to the growth rates of the blockchain retail market, which despite recent global shocks, has accelerated and is expected to double every year for the next five years. Unlike offline businesses, the pandemic didn’t hit the DeFi area at all. In fact, 2020 and 2021 saw extraordinary growth levels in blockchain industries. Some say the pandemic accelerated IT development, but it also coincided with the third Bitcoin halving.
💡 Bitcoin halving is a regular event which takes place every four years, when the supply of new Bitcoins is cut in half. Each halving reduces the rate of inflation, thereby creating upwards pressure on the Bitcoin price.
Hunter Horsley, CEO of Bitwise Asset Management, also shares his thoughts on the current status of the market in an interview on the Real Vision Crypto Youtube channel. He points out that now it is high time to develop the tools that later will become the bases for everyday things. For example, we wouldn’t have Uber now if GPS had not been developed way before it.
As for the current downturn, he highlights two major ideas. First of all, this decline does not exist in a vacuum and takes place alongside other familiar indexes like NASDAQ, so it doesn’t represent a red flag for the exact area. Second of all, investors in the crypto market, according to Hunter’s words, rather check in with the actual adoption than keep tabs on the price of specific cryptocurrencies. Moreover, he says that most of these investors might not even have open positions on any crypto, because they come not for speculative games, but for the development of the technology.
Another point to ignore is the drop in cryptocurrency prices as this might be due to a global trend of crypto technology adoption. This year we’ve seen Wall Street Giants enter crypto when Goldman Sachs gave out the first crypto-backed loan. Many countries are preparing for (and some already have) a legislation platform for crypto operations. Even some international deals are settled with cryptocurrency.
All in all, we shouldn’t be afraid of the bear market. There are many projects nowadays that create value, not bubbles. The internet was going through a dot-com crisis, but as you’re reading this article it means that technology will beat the markets eventually.