The Trouble With Crypto
Let me make this statement before I dive into this article...
I'm an idiot when it comes to this crypto stuff.
That's why I like hanging out and reading all the content on Hive because for a tech-ignorant like myself, it's great to get a feel for what everyone is talking about in this space. So when the markets took a massive hit this week, I'm sure I wasn't the only one...That started checking out all the posts on @LeoFinance
Luna, Terra, Polygon, Solana...I have no knowledge of any of it. I'm in my Hive bubble. Which is a blessing and a curse, but again, trust me when I say...I'm not an expert on what happened this week. However from an outsider looking in, this is what I have seen so far.
Everything still rises and falls with Bitcoin
For better or worse, we are attached at the hip when it comes to Bitcoin. If Bitcoin does good, crypto does good. And when BTC goes south, we all feel the wrath of the market. This simple fact can explain a lot of what happened with this week's sell off.
When a stablecoin isn't stable, all hell breaks lose
The Luna / Terra drama shows what happens when a stable coin doesn't keep it's peg. And when you think about it, you can't blame the market. A lot of these investors don't seem to care about use case, or the tech behind what makes something stable. So when it lost it's peg and the BTC started to flood in to compensate, two things happened...The stable coin, wasn't stable at all and the price of BTC started going down too. Confidence was shattered. No one wanted money in a stable coin that couldn't keep it's peg because that's supposed to be the 'sure bet' in crypto.
We always focus on the wrong things
Hive being down hurts, it does. However the ride or die community members that have been here before won't stop using this stuff. We'll still show up, put in the work and continue to build. Meanwhile in the 'crypto space' people are losing their minds because they only look at price. Hive and it's related projects are special because the use case is first and foremost here. Community is what matters and when you combine that community with use case, good things happen especially when things start going downhill.
These are a few of things I have noticed this week and it makes me wonder....
Will it ever change?
Will actual use case and community be the things that blockchains are measured on, or are we stuck on price forever?
Will projects get away from being attached to the hip of Bitcoin? Or are we destined to rise and fall on it's price?
Will projects like HBD get the shine it deserves because let's be honest, it's not a stable coin, we're a stable-ish coin and I think in crypto...That matters a lot more than being pegged exactly at 1:1.
Maybe the industry can learn something from HBD...Fluctuations aren't a bad thing, as long as the protections are in place to do whatever it can to stay close to the peg.
I dunno....Again, I'm not the smartest guy in the room...
I saw a tweet from @khaleelkazi earlier today that really struck a chord with me:
You read through this thread, you hear about people losing their entire lives over this crypto stuff and you just hurt. I believe this is why being attached to projects just because of price is so dangerous and why we should never spend a dime that we can't afford to lose.
I have to put this into perspective and make sure I always enjoy this stuff! Crypto is supposed to be fun. Sure we all want to see Hive and these projects go to the moon, however we shouldn't forget why we are here. I'm here to change industries, help change the world and help my kids grow up in a world that puts people first...That's why I love Hive and if we all look at it that way...
I dunno.
Wishing thinking...
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