Crypto Assets Industry: Shame or Opportunity?

Recently, the term "crypto shame" has been frequently mentioned in the industry. Not only do ordinary investors feel embarrassed to participate in the crypto/blockchain industry, but even core Ethereum developers who have been deeply involved in this field for a long time have expressed similar sentiments.

On August 5, 2024, amid a significant downturn in the Crypto Assets market, a member of the Ethereum Foundation made a thought-provoking statement. He compared the Crypto Assets industry to aerospace technology, pointing out that the latter continually drives human progress through research such as rocket launches, while the former resembles a casino prepared for speculators, lacking genuine social value creation.

The developer acknowledged that stablecoins do play a certain role, but he also raised a series of questions:

1. The original intention of Bitcoin as a safe-haven asset has failed, as its extreme price volatility makes it difficult to achieve its initial goal.
2. Decentralized exchanges have increasingly facilitated speculation rather than creating substantial value.
3. Some blockchain data analysis tools, although available for market analysis, essentially still serve a speculative market.
4. Although a high transaction throughput has been technically achieved, the current application scenarios are almost exclusively limited to supporting the issuance of a large number of meme coins, rather than creating truly valuable services or products.

Indeed, the ultimate goal of technological development should be to bring substantial improvements to the public's quality of life. However, the current reality is that, in order to ensure safety in life and living, many practitioners choose to remain silent about the industry they are engaged in and the Crypto Assets they hold.

Recent incidents of crime targeting Crypto Assets holders have led many to choose to hide their identities for security reasons. In addition, the high volatility of the Crypto Assets market is also one of the reasons that makes some practitioners feel "difficult to speak out."

However, we need to look at the current state of the crypto industry rationally. Although there is indeed a lack of practical applications at present, speculative behavior has also provided necessary liquidity to the market to some extent. In the long run, crypto assets and blockchain technology still hold important real significance and potential social value.

Bitcoin, as the first successful experiment in decentralized digital assets, demonstrates the possibility of global free circulation that does not rely on central banks or authoritative institutions. For some investors, it is seen as a long-term store of value that can, to some extent, hedge against the inflation risks of fiat currencies. In some countries facing severe inflation, Bitcoin has even become an alternative to fiat currency.

The application of stablecoins in the field of cross-border payments also demonstrates the practical value of Crypto Assets. Some international remittance services have begun to allow users to make free transfers using stablecoins, greatly reducing the cost of international remittances and improving efficiency.

Looking to the future, the potential of Crypto Assets and blockchain technology has yet to be fully realized. Like 5G technology, these emerging technologies may seem to have limited applications in the early stages, but over time and with technological advancements, their social value will gradually become apparent. The immutability of blockchain technology can be applied in various fields such as charity and food safety, enhancing transparency and traceability.

It is worth noting that governments around the world are gradually establishing relevant regulations for the encryption industry, reflecting their recognition of the sector. Regions such as Europe, the United States, and Russia are actively formulating regulatory frameworks to provide a more standardized environment for the development of Crypto Assets.

In summary, although the current Crypto Assets industry faces challenges, we should not feel ashamed. On the contrary, we should maintain patience and confidence, and continue to explore the potential and applications of this technology. The future of Crypto Assets and blockchain technology is still full of possibilities, and the key lies in how to apply these technologies to more practical scenarios to create real value for society.