Ari Paul, founder of blockchain investment firm Blocktower Capital, weighed in on the bear market, comparing the situation to the tech crash back in the year 2000. Paul likens Bitcoin (BTC) to Amazon, which is one of the companies that survived the market collapse.
In a Twitter thread, Paul noted that while there are “modest” products in the crypto market, many improvements must be done in order to reach the mainstream. Paul also argues that adoption is “5 years behind” from what many hoped.
The executive also highlighted network outages in Solana, delays in scaling Ethereum and Bitcoin’s security and future upgrades are overlooked during bull runs but “feels very different” during a bear market, arguing that optimism wouldn’t cut it anymore in this situation.
Following these, Paul compared today’s crypto market to Nasdaq’s market in 2000, saying that most cryptos are risky and early stage. However, the Blocktower founder highlighted that there will be something like “Amazon” that will survive the crash. He believes that it could be Bitcoin.
According to Paul, Bitcoin has “far better odds” than other cryptocurrencies because it doesn’t have a competitor as a product, and in terms of its technology. He tweeted that:
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 ⛓️ (@AriDavidPaul) June 14, 2022
Despite sounding bearish, Paul clarified that he is “more bullish” on crypto now compared with almost a year ago. He just wants to warn people to be careful of what they buy during the current market downturn.
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The effects of the bear market have had a massive effect on the livelihood of a number of workers in the crypto industry. Crypto exchange Coinbase recently announced that it will lay off 18% of its employees because of the decline in revenue and the bear market.
Meanwhile, some community members have given insights and plans for traders on what to do to survive the crypto winter. From figuring out their risk tolerance and dollar-cost averaging to finding new projects with potential, community members try to encourage others to keep on moving despite the cold crypto winter.