Crypto markets are breaking established patterns, with the bitcoin price dropping below the high from its previous halving cycle, something that has not happened before. This is occurring against a less-than-friendly macro backdrop, and negative sentiment has ramped up to extreme levels. Within crypto, emotions are running high, but it’s useful to step back and view the scene from an external perspective.
After all, if crypto is to thrive then it will require mainstream adoption from users and investors who don’t follow every blockchain blow-up. What’s more, over the last couple of years, crypto has achieved a position of greater visibility, and, despite current tribulations, established itself as a sector that is sticking around.
All that in mind, how do cryptos and the broader blockchain space look now to the casual observer?
Bitcoin
Markets rise and fall, but bitcoin has survived everything thrown at it so far. Its reputation among crypto-natives is as being battle-hardened and reliable, but it’s unrealistic to expect that the non-crypto world views it that way yet. However, perceptions are changing, and will continue to do so the longer that bitcoin is present.
With old price models going out the window, current prices can dip further during the ongoing crypto crash, but increasing numbers of people should recognize an opportune buy zone. On top of that, bitcoin’s HODL culture is strong, and there is now a chance for retail to pick up the cheap coins puked by over-leveraged forced sellers.
Ethereum
The view of Ethereum, for many, can be summed up in two words: gas fees. When new users first look at transacting on Ethereum, there can be a sense of disbelief that people are actually paying these amounts, in dollar terms, and a layer of friction is created.
Perhaps enough people will become immersed in the Ethereum network that gas fees cease to be a shock, but more likely is that until the issue is fixed, Ethereum adoption will suffer drag. That said, there is so much developer activity on Ethereum that despite the fees, the number-two blockchain exercises a unique pull.
The big story coming up for Ethereum is the Merge, when the network transitions to proof-of-stake. This will not in itself cause gas fees to become lower, but it is a step on the path in…
